Call For Belt-Tightening

In Western Samoa

From R. F. Rankin, in Apia Western Samoa’s Minister of Finance, Mr. G. F. D.

Betham, called for a year of austerity in the territory when he presented his budget for 1965 to the House of Assembly in October.

FE said public servants could ex- L pect no pay increases, imports »uld have to be cut, and some ential services would have to be rtailed.

Mr. Betham’s budget provides for deficit of <£227,175. This will sorb about half the Government’s erves in the Treasury General nd.

Fotal budgetary expenditure for 55 is estimated at £2,307,855 com -ed with £2,178,140 in 1964.

Mr. Betham said: “Our population, ich has been projected at 137,000 1966, 203,000 in 1976 and an azing 309,000 by 1986, is greatly reasing its demand for Govern nt services. ‘On the other hand, the falling ional income must call for some momic belt tightening.”

Mr. Betham said that acceptance original budgetary requests from ivernment departments would have urred a deficit of about £640,000 hout providing for projected de opmental efforts.

Cocoa Prices In reviewing 1964, Mr. Betham d that the fall of cocoa prices to average of £172 a ton, compared ;h last year’s average of £202, jld result in a loss in national in ne for 1964 of £125,000 or more.

Fhe banana industry was also fac ; a crisis with the devastating ead of bunchy top disease, A hless nationwide campaign of idication would cost much money a time when it could least be orded.

Mr. Betham said export earnings September 30 were above those • the same period last year, but r ers e a s exchange transactions )wed a record deficit of £229,617 tile the imbalance of trade was 493,610.

Export figures to September 30 ith last year’s figures in brackets)

were: Copra, 11,564 tons, £.689,189 (10,627 tons, £594,147); cocoa, 3,101 tons, £507,158 (2,227 tons, £453,329); and bananas, 463,951 cases, £542,632 (497,872 cases and 1,782 bunches, £588,504). Total exports for the period were worth £1,706,412 (£1,683,568).

Mr. Betham said; “With every new mouth to feed, as the birthrate continues to increase, the pressure of our economic problems intensifies and the urgency for increased pro duction in all fields becomes more live and apparent. We cannot afford to be complacent in the face of realities.”

He said that research had elicited a wealth of untapped resources which, if productively employed, could as sure a bascially sound economy in the future.

An acceleration of effort to build up the country’s export trade, hampered all along through financial limitations, was now more urgent

than ever, and funds had to be found to pursue such a policy.

Mr. Betham said that early next year Cabinet would seek parlia mentary approval for finance for a development programme for 1965, emphasising projects that could bring about the best results in creating jobs and income.

By the middle of 1965, a five-year programme for 1966-1970 would be presented. This would encompass the entire capital improvements pro gramme with an order of priority.

Local financing to a minimum of £.l million would be required, and outside aid would be sought from all available national and international air sources.

Mr. Betham.