SUBSIDY TO COOK IS. NOT TO BE REDUCED

Press, Volume CVII, Issue 31461, 30 August 1967, Page 26

SUBSIDY TO COOK IS. NOT TO BE REDUCED

(N.Z. Press Association) AUCKLAND, Aug. 29. There was no suggestion that the New Zealand Government’s subsidy to the Cook Islands of about $2 million a year would be reduced, the Deputy Prime Minister (Mr Marshall) said in Auckland yesterday.

He had just returned from a two-day trip to the islands “to get an on-the-spot appraisal of the problems and developments of the islands and assess their future needs.” Mr Marshall said he told the islands’ Legislative Assembly that future planning should take into account New Zealand’s financial position. The triennial grant to the Cook Islands will come up for renewal in the next financial year, and there was a teain of New Zealand officers at present in the islands to report on their needs. Migration Warning Mr Marshall warned Cook Islanders during his visit' that they should not migrate to New Zealand unless they were assured of a job before leaving. He gave this warning when he addressed the eleventh session of the Cook Islands' General Assembly, and emphasised the unemployment

difficulties at present facing New Zealand. Referring to financial and technical aid from New Zealand, he said: “It is not given lightly. We do not have money to spare, but it is gladly given because we believe it is used responsibly by you in managing your own affairs.” Wage Increases Mr Marshall told the Legislative Assembly: “I think I should mention one specific purpose for which we would not be happy to provide funds in the future. This is to enable wage increases, granted to public servants in New Zealand, ,to be automatically applied throughout your public service. “It may be necessary to provide for this over the current period, but for the future we should recognise that the circumstances and conditions under which, these increases are worked out in New Zealand have no parallel in the Cdok Islands and that it is unrealistic to apply similar increases in the islands." Two Major Projects Apart from the level of financial aid for general administrative- purposes, the two Governments were at present engaged in clarifying developments on two major projects —the proposed upgrading of the Rarotohga airstrip and the reconstruction of the general hospital, he said. “The projected advantages

of a regular air service to Rarotonga are well known, and we all hope that it will be possible to find the necessary money,” he said.