‘Norfolk Island heading for disaster …’

A report released today claims the Norfolk Island economy is in crisis and heading for disaster.

This crisis is the result of the manner of intervention by the Australian Government in Norfolk Island’s government and economy since 1 July 2016. By requiring both that Norfolk Island pay its own way and that Norfolk Islanders become like mainland Australians in terms of their obligations and expectations, the Australian Government is crushing the island’s economy in a vice from which few groups will escape unscathed.

It is projected that Norfolk Island will suffer a very large rise in prices, a steep downturn in tourism, a slump in business, a rise in unemployment, and widespread community distress.

Norfolk Island is a small island in the South Pacific Ocean and an external territory of Australia. From 1979 until 2015 the island enjoyed a degree of self-government, but this was terminated by the Australian Government in actions that disbanded the Norfolk Island Legislative Assembly, the Norfolk Island Government, and Public Service. The Legislative Assembly was replaced by a “regional council”, constructed under Commonwealth legislation, and modelled on a New South Wales local authority template.

Critical factors identified in the present crisis include:

• the widespread imposition of Commonwealth and NSW regulatory regimes;
• the planned introduction of Australia’s Modern Award System in employment;
• the failure of the Australian Government to take up the responsibilities previously held by the Norfolk Island Government for the promotion of tourism;
• the loss of direct passenger airline services between New Zealand and Norfolk Island;
• restrictions on island agricultural pursuits due to biosecurity preconditions;
• the removal of the general revenue raising powers of the Norfolk Island Government;
• the little evidence of any “upside” for Norfolk Island’s future economic development.

To deal with this crisis the Australian Government is urgently enjoined inter alia to:

• halt for the meantime further Commonwealth impositions on Norfolk Island;
• commission the Australian Productivity Commission to carry out research and conduct a public inquiry to determine the real financial capacity of the island and how it can survive economically, socially and culturally at reasonable cost.

This independent report entitled “On the Brink of Disaster: The Impact of the Australian Government Reforms on Norfolk Island Businesses” has been prepared by economist and former scientist Dr Chris Nobbs.

The report is also available for free download from: http://www.norfolkonlinenews.com/impact-of-the-reforms-on-norfolk-island-businesses.html

Download analysis …

Norfolk_Island_Report_on_Businesses_-_Nobbs_-_18NV17.docx

*Dr Chris Nobbs is a graduate of the universities of Auckland, London and Cambridge, in natural science, economics and economic development respectively. He has had a career in both the private sector as a consultant and as a public servant, at local, state, national and international levels.

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