Norfolk Island's Chief Minister, David Buffett, announced to the Norfolk Island Assembly today that the Commonwealth Government has agreed to provide $3.9m to help our cash strapped government address a range of "urgent and needed" issues.
In agreeing to provide this short term package it is understood that the Commonwealth has not agreed to pick up existing Norfolk Island Government liabilities such as those related to the contractual arrangements for the provision of air services to the Island.
The Norfolk Island Government is now committed to working closely with the Commonwealth to determine the basis of longer term financial support and this may bring to an end the income tax free status of the island.
Minister Simon Crean is likley to visit Norfolk Island in February for discussions with the NIG. It is expected that Norfolk Island Government's proposals will be then go forward into the Commonwealth governments budget cycle for 2011/12.
At a public meeting in Rawson Hall later in the day, the Chief Minister and Mr Robert Patch from Minister Crean's Department, spoke to a large group of community members regarding the next steps to be taken in the process.
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