HC Deb 13 July 1925 vol 186 cc838-9
10. Mr. RHYS DAVIES

asked the Secretary of State for the Colonies whether, in view of the large profits made by rubber companies, as is shown by the last report of a rubber company with head offices in London, the original shareholders of which have received an annual average dividend of 70 per cent. for the last 21 years, he will reconsider the policy of limitation of production of rubber in the Malay Peninsula which has been put-in force with the approval of the Colonial Office?

Mr. ORMSBY-GORE

The legislation in the Malay Peninsula is framed to control the export of rubber and does not restrict its production. There is nothing to prevent an increase of production to meet a continued shortage and, in that event, the quantity which can be exported under the minimum scale of duty will be increased automatically. The whole matter is under the constant consideration of my right hon. Friend, but he is not, as at present advised, prepared to suggest to the Governor and High Commissioner that the present temporary rise in the price of rubber calls for a reconsideration of the existing ordinances.

Mr. DAVIES

If what the hon. Member characterises as temporary becomes permanent, will he look into the subject again?

Mr. ORMSBY-GORE

The matter is constantly under review. In view of this sudden and rather unexpected rise in rubber it will necessarily, under the existing ordinance, mean that a greater amount of rubber will be released on 1st August automatically. But the matter is under constant review. If the price remains at the present extraordinarily high figure no doubt the matter will be re-examined.

Mr. THURTLE

Would the right hon. Gentleman not consider the advisability of increasing the percentage increase on 1st August from 10 per cent. to 20 per cent.?

Commander WILLIAMS

Were these Regulations in order last year?

Mr. ORMSBY-GORE

Yes, they were. In reply to the hon. Member for Shore-ditch (Mr. Thurtle) that could not be done simply by the Secretary of State. It is a matter of legislation. Legislation would be required in the Straits Settlements, the Federated Malay States and Ceylon, to give effect to it. We could not change it without great disturbance.

Mr. J. H. THOMAS

Speaking generally, the restriction has proved of immense advantage to this country, especially in our dealings with America?

Mr. ORMSBY-GORE

It probably saved the British rubber industry in Malay.

Sir F. HALL

Is the present price not very much below the price some years ago?

Mr. ORMSBY-GORE

In the famous rubber boom prices were even higher than they are to-day.

Sir F. HALL

Twelve shillings a pound.

Mr. ORMSBY-GORE

We must regard the present price as abnormal.