Britain and EU pump up Pitcairn economy with $10m

By ELLEN READ

The Pitcairn Island economy - facing bankruptcy within a year - has received a $10 million lifeline from the British Government and European Union.

The world's most isolated populated island costs around $1.5 million a year to run - but brings in just half that in revenue.

To date, a Pitcairn Fund has covered the shortfall but this will run out during this financial year leaving the 47 islanders dependent on British Government aid.

In an attempt to return the island to economic self-sufficiency, the British Government signed off on a £1.9 million ($5.3 million) grant on Thursday. The money will go towards repairing and upgrading infrastructure, including the main road between the island's jetty and settlement. Islanders were told of the funding on Friday and it will be officially announced at the Pacific Islands Forum in Apia.

Matthew Forbes, Pitcairn deputy-governor and first secretary at the British High Commission in Wellington, said the idea behind the grants was to invest in Pitcairn now so it will become self-sustaining in the future.

"The problem isn't expenditure, it's the top line income which has progressively reduced over the past five years," he said.

"It's an investment. By putting this money in we can create a sustainable economy."

Added to the British money is a €2.3 million ($4.3 million) grant from the European Union, secured last month to fund studies into eco-tourism and other ventures to raise Pitcairn's income.

Pitcairn commissioner Leslie Jacques has just returned from several weeks on the island and said the locals were enthusiastic about plans to investigate eco-tourism, sell commercial fishing rights to the island's large economic zone and expand Pitcairn's honey production.

Eco-tourism would appeal because Pitcairn has 11 plant species and three sorts of bird not found anywhere else.

The island's population peaked at 233 in 1939 and while Mr Jacques isn't quite planning a return to that level, he sees a permanent population of 150 as viable.

Three students living on Pitcairn told him they were planning to study tourism by correspondence courses.

"The kids are buying into the future."

Wind generated power will also be considered because the island relies on oil generators and has power only between 8am and 1pm and 5pm and 10pm daily.

The timing of the British funding comes as seven islanders facing sex charges are challenging British Government jurisdiction on the island. The aim was to allow them to be tried under their own law - an appeal they lost last week.