(condominium) budget

Taxes up in N. Hebrides (condominium) budget

From a Vila correspondent The approach of the end of the year saw many Islands’

Treasurers presenting budgets for 1969. The New Hebrides was no exception although, being a condominium, the mechanics of such an exercise differ from the norm.

The New Hebrides has three budgets—the French budget, the British budget and the Condominium budget. No particular fuss is made over the first two; but the Con dominium budget is presented to the New Hebrides Advisory Council in its last meeting of the year and is introduced in a joint speech from the Resident Commissioners the French Resident Commissioner making the speech in French, and the British Resident Commissioner in English.

The French and British each have their own methods of financing their own national budgets but the Condo minium Government’s main source of revenue is Customs duties, both import and export.

In the joint speech on the 1969 budget, delivered at the Advisory Council meeting in December, it was disclosed that the treasurer was aiming for a balanced budget at the equivalent of $A2,786,077, which was about $A 10,000 less than in 1968.

However, it was subsequently decided, during debate, to raise taxation to cover further expenditure and the total budget therefore became $2,859,106.

Loss of 5 per cent.

The Condominium was expecting a loss of about 5 per cent, in revenue due to the closure of the Forari manganese mine. In addition, recent revisions of Condominium employees salaries added an extra burden.

The other sectors of the economy were, however, buoyant, as indicated by a rising volume of trade, which is again expected to have an excess, in value, of exports over imports— one of the few Pacific territories that ever achieves this.

The amount of copra exported has remained steady although unlike other Pacific territories which enjoyed high prices in 1968, French prices fell. (All New Hebrides copra goes to Marseilles). Exports of cocoa, meat and fish are expected to be up, although final figures are not yet available.

On the political front the Resident Commissioners expressed regret that the Advisory Council, which in 1964 was designed to have a tenure of office of two years, has had a life of almost four, due to successive extensions.

This was regarded as its final ap pearance. When the next Advisory Council meets, it will have an in creased membership and a big pro portion of members will be elected rather than appointed.

Following the Resident Commis sioners’ joint “speech from the throne,” there was plenty of other speech-making and some action.

A majority of members finally agreed that an increase in taxation was warranted but at the time of going to press no details had been announced in Vila. As most of the Condominium budget is financed by import and export levies, presumably this means increased duty on some items.

The increased expenditure, which will be covered by the additional taxation, amounts to an estimated $74,430. This includes $35,000 for improving airstrips (see below); salaries of specialist officers, $5,000 for maintaining airstrips; and a $12,000 deficit in respect of royalties from Forari which now will not be forthcoming in 1969.

The motion that caused the greatest amount of discussion during the council meeting was one relating to civil aviation —due largely to the recent accident to one of Air Mela nesia’s planes.

General dissatisfaction was ex pressed about the handicaps that any internal airline would be under in trying to operate an internal air service under existing conditions.

It was agreed that the need for improved facilities on the Condo minium’s airstrips is great. Finally it was decided to embark on a five-year plan to bring the airfields up to a more reasonable condition. It was also agreed that provision be made in the 1969 budget to enable the first stage of this plan to be put into operation.