Dili, 17 May 2000
The situation in Viqueque deteriorated after heavy rain overnight. Plans were to fully open the by-pass through the river to gain access to Viqueque town today, but the level of the water had risen dramatically, making the crossing impossible. The flooding had rendered the road from UNTAET administration in Viqueque to Viqueque town impassable.
The collapse of a second bridge linking Viqueque town meant that sub-districts Uato Lari and Uato Carabau are now cut off from Viqueque town. For the present, these sub-districts are secure in terms of food. However, temporary employment projects (TEPs) already launched in these sub-districts are now on hold.
Six UNTAET staff members stranded in Uato Lari will be picked up by UN helicopter tomorrow, 18 May 2000.
Because of the situation, fuel and other essential supplies cannot be brought into the district. It is estimated that fuel stock for the generator will last approximately 10 days. The administration is considering fuel rationing until the problem is resolved. The main pipe bringing water to the district is temporarily suspended over the river, but the suspension is likely to break at any moment.
A survey is currently being carried out to establish how many houses have been flooded. The administration met this morning to assess the overall situation and to come up with plans to solve the problem.
In Suai, flooding has forced the UNTAET staff to evacuate from the compound, which serves as both office and living quarters. The water level inside the office is about half a meter high. The staff has been evacuated to the homes of the Civilian Police (CivPol) and United Nations Military Observers (UNMOs) in the area.
The town itself is completely cut off . Aggravating the situation, the airplane that normally brings supplies from Dili to Suai has broken down. The only way to get to the area is by helicopter. An assessment is currently being made to estimate the damage.
PUBLIC HEARINGS ON TAX SYSTEM
In the first public hearing held with the National Consultative Council (NCC), UNTAET s finance administration and tax experts made a presentation on the East Timorese tax system and proposed a new services tax. Collection of latter will commence on 1 July 2000.
The services tax will be a flat 10%. Those affected include hotels, restaurants and cafes, telecommunications providers and vehicle rentals. Small hotels and restaurants are exempted from this tax. However, there will be no exemptions for UNTAET or NGO personnel.
Timorese and foreign business representatives as well as members of NGOs addressed the panel. NGOs supported the services tax, local business representatives said that 99% of their customers are foreigners while foreign business recognized that they are liable for taxes.
UNTAET s panel defended the need of East Timor to collect taxes,. The revenue collected will be used on nurses, teachers, police, computers and other running costs of the Government. It is estimated that recurrent expenses of the Government will be US$60 million per year. Taxes collected in the next fiscal year will contribute an estimated US$6 million to US$8 million to the coffers.
The strategy proposed was to broaden the base of taxes. After services, wages, business income and land will be added.
Currently taxes are limited to import duties, excise and sales tax. Regulation 2000/12 on Provisional Tax and Customs Regime for East Timor, approved 8 March, established a 5% rate of import duty, excise on alcohol, tobacco, etc, 5 % on sales taxes, and 5% presumptive income tax on coffee exports.
CNRT President Xanana Gusmão expressed surprise that the estimated recurrent expenses would be US$60 million, much more than the last estimate. However, his main concern was that Timorese should not be subject to taxes yet. Why collect taxes from these people, who have barely enough money to feed themselves? We are not anti-taxation. But I would ask you not to rush into collecting taxes from the people. Not yet.
Michael Francino, Head of the Central Fiscal Authority, responded that UNTAET will prepare the budget that the NCC members want, but emphasized that the services tax will affect mainly foreigners who live, work or have business in East Timor. He added that donor countries know that it is unrealistic to expect taxes to be imposed on the general public. I will not have any problem in sending an electrical bill to UNTAET, or to the World Bank, or to the IMF, he concluded.
DEPUTY SRSG VISITS AUSTRALIA
The Deputy Representative of the Secretary General of Governance and Public Administration GPA), Jean-Christian Cady, left for Australia yesterday to meet with the Australian Trade Commission and the Ministry of Foreign Affairs. He will hold a roundtable discussion with donors from Japan, EU, UK, Portugal, USA and New Zealand, focusing on their respective contributions and GPA s priorities in East Timor.
Mr. Cady will also deliver a speech at the Australian National University on the subject of Administration and the Legal/Judicial System. He is expected to be back in Dili on Monday, 22 May 2000.
The UNTAET Director of Social Services, Mr. Cecilio Adorna, is currently visiting Darwin to attend a video conference with the World Bank to discuss issues related to education.
UNTAET LOOKS INTO RIGHTS FOR MINORITIES
UNTAET s Human Rights Unit has looked into some of the laws covering the residency rights of ethnic and religious minorities in East Timor. This was in response to formal requests from ethnic minorities living in East Timor for formal notification of their right to live in the country.
Following the 30 April 2000 disturbances, there has been an increase in threats and intimidation.
Two of the laws are UNTAET Regulation 2000/9 On the Establishment of a Border Regime in East Timor, and the International Covenant on Civil and Political Rights (ICCPR), Articles 13 and 26.
These measures cover the rights of those ethnic and religious minorities who acquired the right to legal residence prior to the independence of East Timor, and they also cover minorities who seek entry or have entered East Timor pursuant to UNTAET Regulation No. 9.
It is clear that ethnic and religious minorities who have acquired their right to remain here under UNTAET s Regulation 9 cannot be expelled on the basis of their minority status.
UNTAET will make a formal announcement on residency rights of ethnic minorities after consultation with the National Consultative Council.
SATELLITE IMAGES ON DISPLAY
Four satellite photographic maps of Dili and East Timor taken in September last year were presented today in the Dili District Administration Office. The photographs are a gift to UNTAET and the people of East Timor from the Australian Government. Two of the images show Dili burning during the violence of last year.
Even painful memories are important to a people on their way to independence, said James Batley, the Head of the Australian Mission in East Timor, as he presented the images to the public. These pictures also remind us how much has been done in East Timor over the last nine months, he added.
Two pictures will be put on display in the future museum in Dili, a third will be donated to the Governor s Office while the fourth will hang in the Dili District Administration Office.
I want to thank the government of Australia for sending us these simple but moving gifts, said the Transitional Administrator, Mr. Sergio Vieira de Mello.
WORLD BANK/ADB TEAM VISITS EAST TIMOR
A team from the World Bank and the Asian Development Bank (ADB) is currently in East Timor to supervise the Community Empowerment and Local Governance Project (CEP). The team s one-week visit will also take representatives to Ainaro, Aileu, Bobonaro, Manatuto, Liquica, Baucau and Maubise.
Village Development Council members in Liquica, Manatuto, Ainaro, Aileu and Ermera are meeting to determine how they will spend the first emergency World Bank/ADB grant of between US$15,000 to US$45,000 for each sub-district. This money is to be divided equally according to the number of villages.
If the spending requirements are finalized, the funds will be disbursed this week.
A total of 100 Timorese staff have been recruited and appointed to work on the first phase of the CEP. In this initial phase, CEP is establishing development councils at village and sub-district level. Grants are channelled through these councils.
