Norfolk Island gives up independence

The island, which is home to descendants of the HMS Bounty mutineers and has been self-governing since 1979, this week struck a surprise deal with Canberra agreeing to foreign rule in return for financial aid.

David Buffett, Norfolk Island’s chief minister, told parliament that the island was likely to have to give up its tax-free status in order to access support from the federal government.

The controversial deal threatens the island’s ability to run its own affairs and could spell the end of some unique local laws, including one that allows residents to drive without wearing seat belts.

The move has been condemned by some of Norfolk Island’s 1800 residents, who are fiercely proud of the island’s history of independence.

Ron Nobbs, a former chief minister and farmer who is descended from the English mutineers, blamed overspending by the government for the dire financial situation, which has left the island A$5 million (£3.1 million) in debt.

He said that the deal with Australia threatened the unique way of life on the island, and that some residents may choose to move elsewhere in protest.

“It has been a big shock to get word that they had hoisted the white flag, there was no consultation,” he said.

Mr Nobbs said that the tax-free arrangement had attracted doctors and teachers to the island who would never normally move there.

“It could change our whole economy, businesses who never used to pay tax will have to pay, and that will push prices up for tourists.” While mainland Australia managed to sidestep the global economic downturn, Norfolk Island’s economy has been hit by falling tourism numbers over recent years.

The island, which had taken on the responsibility of raising its own revenue, relied heavily on foreign visitors. When tourists fell from 48,000 in 2005 to a low of 25,000 last year, revenue was almost cut in half.

Mike King, a local Labor MP, said the island’s administration had failed to manage the economy properly.

“If this situation was occurring on a mainland local government they would have all been dismissed years ago,” he said.

“Why there has not been an earlier intervention I cant say.” “There has been enough evidence to suggest financial mismanagement.” Mr Buffett, who until recently had been a strong opponent of moves from Canberra to limit the island’s autonomy, refused to comment, but in his statement to parliament he said: “The minister and I have agreed that it is necessary to urgently achieve short-term solutions as well as working co-operatively to ensure the long-term sustainability of the Norfolk Island economy through structural reform to the island’s governance arrangements and participation in the Australian taxation and social security system.” Mr Buffett said that his government would no longer oppose the Territories Law Reform Bill, which seeks to end the island’s three decades of self-government.

The bill removes the ability of the island’s legislative assembly to select its ministers and allocate them portfolios and gives the Commonwealth the power to take a far greater role in the island’s administration.

The remote and picturesque volcanic island, which measures just 13 square miles, lies 900 miles east of Brisbane, but the way of life of its residents varies greatly from those on the mainland.

Originally home to a brutal British penal settlement, the island was settled by a group of Tahitians and HMS Bounty Mutineers from Pitcairn Island in 1856. It was self governed until 1897 when the territory came under the administration of New South Wales and later the Australian Commonwealth.

Even today, residents of Norfolk, considered by law to be Australian citizens, pay no income tax. The island has its own flag, customs service and international telephone code. Cows have right of way on rural roads, and the island’s language, a peculiar mix of 18th-century English and ancient Tahitian, is still spoken around some dinner tables.