PROVIDING FOR OUR NEEDS

Now I am not much good with the complexities of economics - but I do know know that Norfolk Island provides its people with a very beautiful way of life, including many of the things that money can't buy!!
But in recent time, at a government level, we have been having some difficulty in balancing the books. And if you ever listen to the news, you will say "What government doesn't??"
  
                                                     
There are a number of reasons why our island, which has always done a pretty good job with its housekeeping and lived within its means, is now having some issues with being able to pay its own way for everything.
It is not that we are afraid of hard work. Until the burgeoning of the tourist industry fifty years ago, it was mainly the work of Norfolkers' hands that enabled people to provide for themselves and their families. They were resourceful, engaged in a number of rural enterprises, traded and exported produce - and when one thing failed, they turned to another. They lived modestly, and it was mostly a semi-subsistence type lifestyle, but they were content, and envied no one. When someone fell down on their luck, the community was there to help. No social services, big mortgages and the like, but it worked.
The tourist industry certainly made life easier, with less physical work and more cash flowing in. There was greater communication with the mainland, and pressure to raise standards of living. Which was all very well, and most people felt there was greater certainty and security in their lives.
Community values of sharing and pulling together remained strong, but gradually people's expectations changed. A nice house and regular holidays became a must, and things like health and education started to cost a whole lot more than they used to.
The banks developed a stronger presence on the island, and soon people were taking out loans to improve their living conditions. We became part of the mortgage belt, and the banks encouraged it. Same story in a lot of places, of course.
Even so, our government, under a new regime of self-government (bit of a misnomer) managed its housekeeping well, and continued to meet community needs and balance its budget - all without grants from Australia or income tax.

                                             
So what went wrong?
It did not help that whenever the island showed a bit of enterprise, the Federal Government pit obstacles in our path. We had to stop registering companies looking for a taxhaven, even though it was not hurting anyone. An online university (offering post-graduate courses) based here, and employing local people, attracted Canberra's attention, and they brought in new Australia-wide legislation just to stop our little operation.
Meanwhile the Federal Government, which retained control of some government areas, and held power of veto in others, introduced Norfolk Island to "Red Tape." And it all had to be done their way - no small island solutions to small island problems.
All this time they regularly sent over groups and bodies like Senate committees to investigate us. They usually left none the wiser, but it all cost us money having to report to them and defend our position.
One major problem - and we did not realise this until it was too late - was that up until self-government in 1979, Norfolk Island had more or less been run by Aussie as a bit of a colonial outpost. And that it how it was handed over. We should be very proud that we proceeded to turn it into a more modern and efficient bureaucracy and system of government, and had to direct a lot of our resources towards that. We took on not one, but three layers of government - some "federal" type powers, some state functions, and the ever important municipal functions. And we made a pretty good go of it for a long time.
But we inherited a great deal of infrastructure that was run down and badly needed upgrading. Like our airport. So the Federal Govt, bless them, gave us a big loan to do what they should have done in the first place. Same with the Cascade cliff - their property - but they stabilised it at great cost, and we are still paying them back out of royalties on the rock that was obtained from it. That is only some of it - and it is still happening.  Canberra is making magnanimous noises about improving the Cascade pier (once again their property) but we are going to have to sell our soul in return. And many local people do not believe that is really going to solve our problems. We really need a third landing place. But they don't listen. They know better than us when it comes to deciding what we need.
So why else have things started to go downhill? Many think it started with the introduction of GST in Australia, and perhaps even further back in NZ. Many goods that had been sold at a attractive price here on the island, items that had formerly attracted a large sales tax on the mainland, became cheaper in Australia. Our duty free shopping was no longer such a draw, and local businesses and retailers had to re-think - or lose out. To their credit, local resourcefulness triumphed in many cases, but it has been hard. Online shopping, and greater frequency of trips to the mainland on the part of locals has also taken its toll.
Then there was the Global Financial Crisis. We felt it too, but were not allowed to join the queue for compensation or economic stimulus payments. One of our main markets - the self-funded retirees - felt the pinch because interest rates dropped, and travel patterns changed dramatically.
                                             
So why should Canberra help us?
Well, we are their responsibility, and they have made it clear they have no intention of letting us loose.
And they have consistently denied us the means to help ourselves.
When we first realised that things were getting tough financially, we had recently made some big investments in state of the art fire engines (at that time needed at the airport) and a large building to house them, which would also serve as an emergency management centre.  Personally, and I know many disagree, I believe they were good investments. So our government decided we could let the bank take over the fire engines, and we would lease them back.
But Canberra said NO. They do not want us to borrow money from anyone except them, and we have to catch them in a really good mood. They would rather wait until we seem to be desperate, to show we cannot manage for ourselves, and should hand everything over to them.
Our wage levels on Norfolk Island are a little lower than on the mainland, but do allow a reasonable standard of living. However, we are expected to employ an ever-increasing number of folk from overseas - no favouritism can be shown to locals - and when these imported people come, they are paid high salaries all tax free.
It is not all one way. Many of our people have paid Australian taxes much of their lives, but they cannot bring their benefits back here. There are big Australian companies that operate here - like energy companies and banks - and they pay Australian tax on what they earn here on Norfolk Island.
What is galling is that New Zealand and Great Britain have a totally different attitude to their former colonies and territories. They bend over backwards to make it possible for their former responsibilities to become self-sufficient, and manage their own affairs, while still enjoying the mutual benefits of a close association with the former Mother Country.
Britain has allowed the Falklands to earn a great deal of income from its territorial fishing rights, but Australia does not allow us a look in with ours. The Channel Islands enjoy revenue from their tax haven status, but Canberra feels quite threatened by that when it comes to Norfolk Island. New Zealand's responsibilities, like the Cook Islands and Tokelau, greatly benefit from New Zealand's oversight, and are even allowed to receive regional grants from Australia, to the tune of amounts much higher than we receive!!
They are also allowed to receive foreign money from places like China. Look at what we could do with that sort of help - register ships and companies, become a centre of excellence in areas that use IT, benefit from strong links and associations with all sorts of places and organisations where there would be mutual benefits.

There are so many factors that have led to our expenses exceeding our revenues. There are still quite a few intelligent and thinking people who believe the trend can be reversed without being drawn right into the Australian system and losing our identity'
I may have oversimplified things, but it is better than telling lies, such as when Minister Briggs declared in a press release that we have no social security and our roads are in a dreadful state.
I have to give credit for much of what I said to "Blind Freddy", who sees things clearly that most overlook, because they are blinkered, or simply looking the other way. Blind Freddy even sees the elephant in the room and is not afraid to say so. He is giving me a great deal of courage just now.