How Australian firms can burnish

their image in the Islands

Trade

Winds

Working, usually without the sound of trumpets, a group of voluntary agencies, some of them world-wide, are giving aid to the Islands. One such group is the Australian Council for Overseas Aid, of which the Foundation for the Peoples of the South Pacific Inc is a member. Already, these agencies have given valuable aid to the Islands, but much more is needed. Below, Lurline Price, executive officer for the foundation, pricks the consciences of Australian companies who benefit from their trade with the Islands but give little, or nothing in return.

Recent research carried out by the Australian Council for Overseas Aid into Australian trade with South Pacific coun tries showed that the most striking feature of such trade is the massive imbalance in favour of Australian com panies. Australian imports amount to only one-third of its total exports to the region, and this extremely favourable balance of payments position for Australia has many im portant effects on economic patterns throughout the Pacific. Almost without ex ception the individual coun tries in the South Pacific have large and continuing trade deficits. The exceptions are the few resource-rich islands such as Nauru.

The effects of world-wide inflation have hit the South Pacific countries hard. Most with large scale deficits are now paying much more for imports from countries such as Australia. This has been ex perienced particularly in manufacturing and industrial goods.

However, the price of ex ports from the few South Pacific countries engaged in such trade with Australia has not risen so sharply, thus ad ding an increased percentage to the trade deficit as a direct result of the flow-on inflation.

Relatively little of Australia’s imports from the Islands are agricultural, a disturbing fact for them considering the subs tantial role of agriculture in their economies.

Tariffs, quotas and preferences have, to a large extent, played an important role in the overall limitations of South Pacific exports to Australia especially in this sector. Rigid protection of primary industry in Australia has ensured a very limited amount of agricultural pro duce being imported. The amount of manufactured or semi-manufactured goods

from the South Pacific im ported into Australia is negligible, and opportunities exist for the expansion of this component of Australian trade.

Australian exports to the South Pacific take two major forms. The increase in tour ism and the growth of “western" style consumer societies has been accom panied by an expansion of Australian manufactured goods and processed Australian primary products exported to the South Pacific.

This rise has had profound effects including the open ing of many supermarkets with canned and frozen Australian products and in dustrial goods.

Particularly striking is the volume from Australia of light manufactured goods, such as soap, plastics, paint, paper products and fibres.

Heavy industrial materials such as iron and steel, pipes, aluminium, concrete, engines, coal and other fuels are another important group of export items. Electrical goods, automobiles and clothing are also exported in

rapidly-increasing quantities.

Most of these exports are directed towards the urban areas in the South Pacific which are growing in numbers of population, due to the drift from the rural areas in search of employment.

The Australian Council for

Overseas Aid has expressed concern at these trends and certain of its member agencies are working towards some possible solutions to the problems, in partnership with organisations within the Pacific itself. They feel that there must be a preparedness by all Australians to challenge the relationship with South Pacific countries as it now ex ists.

One of these agencies is the Foundation for the Peoples of the South Pacific, whose role is that of a “catalyst” for the needs of the people at grass roots level, who are the main victims of such a system. It has recently been carrying out a campaign to alert Australian companies trading in the South Pacific to the thinking among many of the Islanders themselves, as well as Australians concerned with issues for social justice.

It is hoped to build up an effective body to assist in reversing the present im balance of trade by a change in present attitudes. Mean while, the Foundation is seek ing active sponsorship of self help programmes designed to improve the socio-economic condition of Pacific Islanders, particularly in the rural areas.

A considerable number of such business-houses has re sponded to the appeal with enthusiasm. Burns, Philp & Cos Ltd has a proposal where by SIOO 000 will be raised for

specific projects, approved by

the Fiji Government: the Shell Cos of the Pacific Islands has a programme of support for education through the villages to which $35 000 has already been allocated: Hawker de Havilland Australia Pty Ltd has a scholarship at the Der rick Technical Institute in Fiji for the training of young Fiji technicians in more advanced technical studies: the Bank of NSW is sponsoring two pro jects, one for the training of

unemployed youths in carpen try at village level, and the other for providing agricultural tools for graduat ing students from the Com munity Education Training Centre in Suva, which is a centre for the entire region.

The ANZ Bank. Mobil Oil Australia Ltd and Boral Gas Ltd are also giving financial support to the work of the Foundation. It is anticipated that such support will in crease.

While the amount raised by non-government organ isations such as the foundation is small in relation to govern ment aid to the region, the Pacific Islanders themselves have testified to its effective ness in a recent report com missioned by the South Pacific Bureau for Economic Co-op eration. The staff in the foun dation is voluntary and highly motivated, the overheads are small, and the projects tend to be concentrated upon areas ignored or deemed as inap plicable by governments.

Small-scale rural farming, low-cost housing, rural train ing and community work, nutrition programmes, voca tional training, are some of the categories of assistance for which active sponsorship is sought.

If such giving is matched by a change in attitudes, in creased concern for these near-neighbours, and a willingness to look at struc tural changes, particularly in trade and investment, Australia could become a strong partner for economic stability in the islands of the South Pacific, many countries of which have now gained their independence or are on the threshold of such indepen dence, and are holding out the hand of friendship to those who are willing to co-operate in what to them is seen to be an enormous task for the future.