Recommendations+for+an+economic+system

**__THE GOVERNMENT__**

 * The Island will have a small democratic Government made up of 12 people (3 people elected from each settlement)
 * They will regulate a monetary system and formulate the laws
 * The Government will formulate foreign policy

__**SET UP:**__
The Government will initially establish all services With the money provided by the UN, they will first set up the following infrastructure: -Hospitals -Schools -Water and Sewerage -Power -Police/Law enforcement -Transport (roads and wharfs) -Communications -Airports

This will be sustained by taxation and export earnings.

__**TAXATION SYSTEM:**__ Tax on all goods and services will be 10%
 * GST** (hard to avoid)

__INCOME TAX__ -personal earnings -business earnings will be 30%
 * //Taxable income// || //Tax on this income// ||
 * $1 - $6,000 || Nil ||
 * $6,001 - $35,000 || 15c for each $1 over $6,000 ||
 * $35,001 - $80,000 || $4,350 plus 30c for each $1 over $35,000 ||
 * $80,001 - $180,000 || $17,850 plus 38c for each $1 over $80,000 ||
 * $180,001 and over || $55,850 plus 45c for each $1 over $180,000 ||

Note: Subsistence farmers or anyone who doesn't earn money, a small amount of bartering is acceptable. Once money is used or the notional value of barter goods is over $6,000 per annum tax needs to be calculated.

__**BANKING SYSTEM:**__
Set up a co-operative bank/building society Regulated by the Government

__**EDUCATION:**__
Education on the island would be free but compulsory for children aged 5-16 yrs

__**EXPORT EARNINGS:**__
We will generate revenue to pay for the goods and services that we import by exporting goods. What can be exported (also used locally): - papaya - bananas - frangipani, bromeliads and many species of epihpytes (export to international florists' trade) - timbers such as red cedar, brown pine, black pine and milky pine - candlenut (exported for oil and cooking) - pandanus (exported for fibre and cooking) - flax, cotton, kapok, reeds (export for fibre) - coconut (export for oil and fibre) - hemp (used for clothing and hand creams) - sugar cane (refined to sugar) - honey - rice - fish - seaweed farming (export dried, processed seaweed for fertilizer or seaweed sheets)


 * For most things we will value-add by using our labour
 * These goods can be exported using ships passing by (which carry goods from UK to NZ via panama canal)

__Tourism__ We will begin with low-value tourism and use this to fund infrastructure to attract higher-value tourism (which will then bring in more revenue)

__**NATURAL RESOURCES:**__
Natural resources we could use locally and for exporting to generate income: - Minerals such as: -pumis (use locally and export as an abrasive) -basalt (use locally for road infrastructure) - Offshore oil (refine it ourselves then use locally and export it) -Iron, zinc, copper, manganese, gold and silver believed to be offshore in the North-East (export)

__**OTHER SERVICES:**__
Once money has been generated from taxation and export earnings the Governement will set up the following services: - Courts - Jails - Recreation reserves (playgrounds, sport ovals, sport centres) - Customs - Some form of public transport