their money'

'A damn good run for their money'

By a staff reporter

Norfolk Island’s five-man team, which went to Canberra to ask Fed eral Treasurer Frank Crean to amend the new Taxation Bill which will in troduce income tax into the island for the first time, came away em pty handed. Mr Crean refused to consider any of the five amendments proposed by the island council.

Under the proposed new bill, is landers will not pay tax for income earned in Norfolk, and companies wholly owned by people living on Norfolk and operating on the is land will not be taxed.

The five amendments which the team failed to have incorporated in the bill were: • Exemption from company tax for companies with Australian or foreign capital servicing the tourist industry, with the profits made by them being subject to tax when they flowed back to the country of origin; • Similar companies servicing is land residents being exempted in the same manner; • Residents and companies de fined in the previous amendments being exempt from submitting tax returns; • Tax exemption for foreign capi tal flowing in and out of Norfolk Island and not into Australia, and outside the Australian tax orbit; • All the foregoing intentions to be written into the criteria of the bill and not given as discretionary powers to the Taxation Commissioner.

The islanders said the amendments were designed to prevent the in hibition of the rights of companies and residents to maintain the healthy growth and economic stability of the island, and to protect the rights and interests of residents and companies designated as genuine Norfolk Island enterprises.

In the delegation were, the Admini strator (Air Commodore E. T.

Pickerd), Cr J. H. Ryves, Mr Graham Hitchins (community representative), Mr J. D. Mclntyre (professional of fices’ nominee) and Mr Ivens Buf fett (co-opted as a community re presentative).

Mr Crean damped the delegation’s enthusiasm from the start, saying that he had no sympathy at all with those who sought to take advantage of

Norfolk as a tax haven. So far as he was concerned, legitimate business on the island with an Australian con-j nection ought to pay tax. He was] prepared to look at the company situ-' ation but only if particulars of in-1 dividual cases were submitted.

Rejecting all amendments, the Treasurer said he was not convinced that the bill would produce any hard ship, but, if it did, he would look at particular cases. At the moment there was no demonstrable proof that what the island council feared would hap pen. He was only asking that Aust ralian interests should pay tax. He was not asking the residents to do so.

He promised to look at any future presentation which was shown to disadvantage Norfolk Island. Any pro-! blems identified later could be solved by amendments to the bill which should be passed by the House by the end of November and by the Senate before Christmas.

Cr Ryves, on his return to Norfolk, said the Treasurer had al ready made up his mind before he saw the delegation. “I feel that the Treasurer would have been more courteous and honest if he had re fused the delegation on the basis of having reached his decision prior to our arrival,” he said.

He charged Mr Crean, and his col leagues, with “having no understand ing and knowledge or desire to support the social and economic life of this island.”

There were a couple of crumbs of comfort from Air Commodore Pickerd. He said they had assurances that Norfolk Island residents and companies would see no change what soever as a result of the bill, and, added, “The Treasurer hasn’t closed the door”.

But in “I-told-you-so’ vein, Cr Mackenzie commented, “Surely, these Australian companies, when they set up on this island years ago, knew that these loopholes would be closed. 1 am of the opinion that they have had a damn good run for their money, but what concerns me is the way they try to drag the rest of the community down with them.

Maybe, he had the last word when he added, “Personally, I believe this island will be better off without this company activity, and one day we will be able to settle down once again tc a quiet, peacful, law-abiding island.”

Emptying Islands.— The

Cook Islands’ population is steadil} decreasing through migration to Nev Zealand. Latest statistics show a neti loss in the 12 months to last Decern ber of 999. Of that total 839 were Cook Islands Maoris.