‘Sweeping measures’ in Samoan Budget

Press, 11 February 1983, Page 4

‘Sweeping measures’ in Samoan Budget

NZPA Apia The new Western Samoan Government of Tofilau Eti has introduced sweeping belt-tightening measures in a bid to reshape the Pacific State's ailing economy. The tala was devalued 10 per cent on Monday, to about equal the New Zealand dollar, and a packet of harsh economic measures recommended by the International Monetary Fund was introduced in the 1983 Budget on Tuesday. he measures include new excise taxes of up to 33.3 per cent and a rise in import duties of 8 per cent. A wide range of Government taxes, including hotel taxes, have been increased and the tourist airport tax raised from $5 to $2O. The Budget, tabled in Parliament by Tofilau, who

is also Minister of Finance, also proposes raising interest rates up to 15 per cent and new restraints on bank borrowing by the public sector. The measures were foreshadowed in the Speech from the Throne during Monday’s opening of Parliament, which urged the people to sacrifice some of their needs “so that future generations could be better off.” The Government has also clamped down on imports by allocating the importation of essential goods, mainly foodstuffs, to bidders on a “low price-high quantity” basis. But early reports indicate that the system is not working because bidders, instead of wholesaling the goods to retailers, are stockpiling, presumably to retail later when shortages occur. The Budget introduces “harsh measures which the

Government will not be faint-hearted in adopting and pursuing," Tofilau said. Introducing his Budget, Tofilau asked the public to act with restraint, to make sacrifices and “live within our means.” Blaming the former Adminstration for the "adverse economic developments," Tofilau said that had it met overseas trends "promptly with decisive and effective action” the present situation would have not occured. The Budget's packet of economic measures, apparently directed by the I.M.F. which made a recent study of the Western Samoan economy, came as a stunning blow to the community. The Budget is due to go into its second and third reading on February 21 and will then be debated in Parliament.