Caledonians

to play the Paris way

From a Noumea correspondent

Another swing in the precarious balance between Caledonian auton omists and anti-autonomists has brought a new leader to the Terri torial Assembly and assured French Governor Louis Verger of success in gaining acceptance of Paris plans for higher taxes, increased loan com mitments and concessions to French mining companies.

In return, the French Government is to subsidise New Caledonia to the extent of 1,800 million CFP (SAI6 million). This is the compromise being proposed to the Caledonians to over come the budgetary crisis at a time when territorial revenue promised otherwise to bring a SAIO million deficit in 1974.

This underlines the failure of the French Sixth Plan which called for the nickel island to be self-sufficient besides earning more than SUS2OO million in foreign currency for France in 1974.

After continuous opposition from the former autonomist majority in the Assembly, Governor Verger is again in command of the House, since leader of the Melanesian Union Multiraciale, M. Yann Celene Uregei, has been elected to be president of the Assembly with the support of the three anti-autonomist parties.

A self-declared autonomist, Celene. has thus finally succeeded in his at tempts to chair the House, but has brought upon himself the increasing wrath of the autonomists who already had suspicions about his relations with the French Administration.

The presidential vote took place at the opening of the current 1974 budget session, where 13 of the auto nomist members boycotted the ad dress of Governor Verger, to protest against the French Administration’s policy on New Caledonia.

Governor Verger’s speech out lined the budgetary terms which the Assembly is expected to vote upon by the end of 1973. In the 1974 bud get, Governor Verger has proposed that general expenditure should increase 12 per cent over last year to reach 7,800 million CFP (SA67 million). The growing public service will swallow almost all territorial revenue, leaving only 25 million CFP

(IA220,000) for investment expen diture. This must be supplemented by grants and loans from France.

Governor Verger pointed out that in view of the expected decline in territorial revenue from import and export tax, coupled with what he re garded as necessary increases in pub lic service expenses, the only way to stabilise the budget was by obtaining a subsidy from France. Paris is thus prepared to grant the territory 1,800 million CFP. This includes 1,000 million CFP (almost SAIO million) in return for which the territory must exempt the SLN nickel company from an equivalent amount of export tax.

Furthermore, the territory is asked to grant 250 acres of land for the building of the new nickel factory planned for the north of the island by Patino subsidiary, SOMMENI.

In addition, about SA4 million could be raised by extra taxes on alcohol, cigarettes and other items.

As a further measure, the French Governor insists that the territory should raise a further public loan in France, a policy the Assembly has persistently rejected over the past year. The Caledonians have instead urged that the French should save the Caledonian economy by allowing Canadian INCO in to work the island’s nickel.

But the French message to the Caledonians seems to be; let Paris make the decisions, play ball with the motherland, and she will meet any financial needs.

So the Assembly may go ahead playing their “amateur” game, to

amuse the public gallery, while the professional deal will be played be tween financiers and public servants directed from Paris.

With President Celene as new team leader in the Assembly, it seems a new majority has been formed that will play the game by Paris rules.

The New Hebrides National Party' has written to the United Nations asking for a fact-finding mission to study the chances of establishing a single government system in the con dominium with a view to future independence. The party said it was disturbed about the possibility of the present system causing disunity and instability.

Higher import duties on luxury goods and a rise in export taxes are forecast for the New Hebrides next year. These measures, proposed by the Advisory Council’s Standing Committee, are based on findings of the Budget Working Group who examined the 1974 outline budget.

Other recommendations include in creased charges for posts and com munications, water and sanitation, plus an airport tax, which was agreed at the last budget session but never implemented.

Expenditure has already been cut by 60 million FNH and the number of proposed new posts reduced, but 43 million FNH still has to be raised to meet the estimated 1974 expendi ture of 715 million FNH, which is 18 per cent higher than the 1973 figure.