Tighten

Cook Islands Tighten Their Belts

From a Special Correspondent New Zealand’s current finan cial difficulties are reflected in the Cook Islands, regarded as one of her “Tropical Provinces”.

J The Cooks’ Legislative Assembly

is having a hard time trying to stretch inadequate finances, DURING the present session of the Legislative Assembly, the Secre tary to the Government, Mr. L. K, Pitt, stated that the total value of agricultural exports from the Cooks was less than £300,000 annually, while the New Zealand subsidy was £600,000.

The backbone of the economy was the subsidy, and not agriculture, as was generally believed.

The subsidy was increasing far quicker than agricultural exports, and the agricultural income was less to day than it was 50 years ago.

The Secretary produced figures which showed that a far smaller population, about half of the present one, produced about twice the amount being produced today.

Sales Tax Up So, in an effort to boost local revenue, the Legislative Assembly have: • Introduced a sales tax of 5 per cent. This affects biscuits, chocolates, confectionery, all jewellery, all motor vehicles except tractors, motor cycles, power cycles, all photographic goods, cameras and accessories, all radio grams, record players and tape re corders, all radios over £25 in value, watches, and all toilet preparations except soap.

The sales tax became effective from August 1. It is aimed at “luxury lines”, although on an island where public transport is limited to one taxi and a few privately-owned trucks, it seems doubtful if power cycles and motor cycles could be termed luxury items. • It has been proposed but not yet passed, that an additional 5 per cent, tax be imposed on income de rived during the 1960-61 financial year. If passed, this will affect most of the European minority and ai handful of Maoris.

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The tariff of Hotel Rarotonga been increased from £6/10/y to £7 by the Legislative nbly’s Finance Committee. All boarders at Rarotonga’s only are Europeans, and the ity of them are Government >yees seconded from the NZ : Service.

Spending by Government De tents is being closely watched, a some cases severely restricted.

I to shortage of funds it will now be possible to complete on outer islands’ reef passages, is one of the more “urgent” that have been outstanding for 50 years. hough the necessary machinery t last been obtained and stocks (serviceable aircraft bombs are and for blasting, there is in ent money available to freight nery to the islands concerned. - bombs, given free of charge few Zealand’s Armed Forces, lave to be destroyed this year ley are becoming dangerous ?h old age and consequent cal breakdown. No future sup of bombs can be made and *r quantities of commercial ex es have proved ineffective in ast.