GRANTS COMMISSION PART 2

GRANTS COMMISSION PART 2
In my last posting, I said I would try to deal with just a couple of the issues and concerns that were raised by participants who attended the Grants Commission Conference.
The first was in the area of health, where Norfolk was compared with a "small regional acute hospital." The general consensus of most present was that in spite of the age of our hospital facility, the levels of staffing and services appeared to be superior to those of comparable communities, including communities which were isolated, and would therefore require more "at hand" emergency facilities. There was real concern expressed that even if more money was directed to health, this would tend to be used up with equipment and infrastructure, but that the higher levels of staffing necessary would still be unaffordable. Add to that the difficulty in attracting good medical personnel to a higher taxing regime. There was also a suggestion that we may be operating at a greater level of efficiency because we also service a large tourist population! Observations of how health operates on say, Christmas Island, offer no comfort.
A second issue that generated much input was that of land rates and taxes. The former are imposed by local government, and the latter by State Governments on commercial premises (including hobby farms, and on larger tracts only part of which are used for commercial purposes.) and on non-principal places of residence.
It was obvious that the Norfolk ethos, by which land is held in trust for your children, and not for speculative purposes, will be severely affected by such taxes. The Commission has assessed that the land on the island has the capacity to raise x amount of dollars....a huge amount, in fact. Capacity has nothing to do with your ability to pay, or indeed with the desirability of raising money this way. The simple fact is that if you cannot afford to pay it, because you are asset rich but cash-poor like so many here, then you must sell it, and someone else will pay it! The situation is complicated by the fact that Commonwealth pensions are also means tested according to your assets, as is your eligibility for nursing home care. Add to that the loss of immigration controls, and the grim scenario is one of a whole lot of land leaving the hands of those who call this island home!
A third concern, of the effect of higher costs and taxes on business, was even echoed by the Commissioner, who said you don't have to be a rocket scientist to realise that Income and other taxes would have an effect on the profitability of businesses, and therefore on the value of that business, and consequently on the amount of land tax that could even be raised! He also admitted that the bulk of the money we have the capacity to pay in land taxes would be raised from the business community.
Some participants voiced their frustration at the lack of attention to cultural aspects of the Norfolk Island, and the danger of developing a hand-out mentality. To which the Commissioner replied that any package should, ideally, strengthen Norfolk Island's viability, not weaken it, but, he followed this up by saying: "I don't have a white horse to ride into Canberra, only a little donkey!"
What a pity!
You see, all I can conclude is that we will be required to raise more money in taxes from the people of Norfolk Island, plus be forced to accept millions of dollars in hand-outs from Canberra...and still be no better off!!