Australian bounty to go to Norfolk

The descendants of mutineers have swallowed their two-century-old pride and put
their hand out for federal government bounty.
Norfolk Island's chief minister David Buffett has told the island territory's
assembly he would agree to new commonwealth laws to make the island more
accountable, in exchange for federal cash and access to welfare and services.
It was understood only $220,000 remained in the island's treasury coffers at June 30
and bills were going unpaid.
About a dozen retail outlets had closed and jobs had been lost.
Regional Australia Minister Simon Crean, who is responsible for territories, spoke
with Mr Buffett this week and invited him to visit Canberra later in November for
talks.
"The outcome from the Norfolk Island Legislative Assembly is an essential step
forward to work cooperatively to address the short-term situation, as well as for
longer-term reform," Mr Crean told AAP on Friday.
The island's assembly agreed to the principle of taking part in the Australian tax
system, as well as backed the passing of the Territories Law Reform Bill through the
Australian parliament, which has been introduced in the House of Representatives.
Norfolk Island's 2000 permanent residents pay no income tax, but have a 12 per cent
GST.
Under the deal they were likely to have to pay some form of tax, but would gain
access to benefits including Medicare, family allowances and the dole.
Senior officials from Mr Crean's department and the Department of Finance would
assess the island's financial situation in the next few weeks, and work with island
authorities on a solution to its budget woes.
Many islanders blame authorities for wasting money and argue being an income tax
haven encouraged doctors, teachers and other professionals to live and work there.
Duty free shopping on the island also encouraged tourists.
In 1856, the British government agreed to relocate 193 descendants of the Bounty
mutineers from Pitcairn Island to Norfolk Island.
Thirty-one years ago, the federal parliament passed the Norfolk Island Act
establishing the island's self-governing regime, including a nine-member assembly.
Under the proposed new federal laws, the island would get new electoral rules, an
improved system of financial checks and be subject to public sector accountability
measures such as freedom of information.



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