CAB129-45 — Page 405

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the federal Government. Quite apart from this, however, it is clearly desir- able that industrial development, like other forms of development, should be plannPage 406158ican basis and this shdungbe406 off the most important fields for study by the Central Planning Staff and for discussion by the Development Commission..

24. At the same time it would not be desirable to take away from the territorial Governments all responsibility for industrial development. There may be local reasons why an industry is thought to be required in a particular area and it should be open to the territorial Government, if the territorial Legislature will vote, the money required, to provide financial inducements to an industry to start in a particular area. But in order to avoid the danger of uncontrolled competition between the territories in the offering of induce- ments to industries, it is desirable that policy should be co-ordinated both as regards direct intervention by Governments (e.g., licensing of industry or financial participation in industries) and as regards indirect encouragement to industries (e.g., through the provisions of income-tax laws in regard to allowances for depreciation and facilities for setting off initial loans against subsequent profits). This co-ordination could be achieved through the Development Commission.

25. It is accordingly recommended that—

(a) it should be a function of the Development Commission to co-ordinate policy with regard to industrial development and to assess how far as a matter of general policy Government intervention or participation is required in any particular industry;

(b) in cases where such intervention or participation is decided upon, the executive responsibility should lie with the territorial Government in the case of industries primarily of local interest to the territory and with the federal Government in the case of industries of concern to two or more territories. (In such cases no industry could, of course, be set up in a territory without the agreement of the territorial Government.)

(c) Legislation on industrial development generally, including licensing of industries, should be a matter for the federal Legislature; but legisla- tion dealing with particular industrial development projects, which, under (b) above, would be the concern of the territories, should be a matter for the territorial Legislatures.

Central African Loans Council

27. As part of the co-ordination of development planning there should be complete co-ordination of Government borrowing from sources outside Central Africa. It is understood that the Loans Council in Australia, which is not strictly a federal agency but is representative both of the Common- wealth and the States, has been a most valuable and effective institution. The members of the Loans Council are either the Prime Ministers of the Commonwealth and the States or the Treasurers; so that it is a body in a position to take decisions at the highest level.

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28. It is recommended that a Central African Loans Council should be established representative of the Federal Government and the three territorial Governments which should have the responsibility of considering require- ments for outside loan finance put forward by the federal and territorial Governments; the Loans Council should not, however, deal with local borrowing. The members of the Loans Council should be of Ministerial or equivalent rank, and the Council should be empowered under the constitution

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