HC Deb 14 July 1925 vol 186 cc1074-6
65. Colonel DAY

asked the Secretary of State for the Colonies if he is aware that, owing to the restriction scheme which was drawn up in accordance with the recommendation of the Stevenson Committee, which is in operation in the Malay States and Ceylon, the production of rubber has decreased by 50,500 tons per annum, which has had a resultant effect of increasing the price of rubber from 1s. 1d. per pound at the beginning of the year to 3s. 9d. per pound on the 8th July, 1925, with the effect that all manufactured rubber goods, including tyres, have been advanced accordingly; and will he consider having an inquiry held into this policy of restricting output with the resulting increase of prices?

66. Mr. WADDINGTON

asked the Secretary of State for the Colonies whether he is aware that rubber has advanced in price nearly 100 per cent. during the last few months; that rubber is now an important raw material for the shoe and slipper industry in this country; that the high price is causing unemployment; and will he remove all restrictions imposed under the Stevenson Ordinance on the export of rubber from British possessions, and thereby check the profiteering now taking place?

The UNDER-SECRETARY of STATE for the COLONIES (Mr. Ormsby-Gore)

My right hon. Friend is aware of the recent rise in the price of rubber, but according to the best estimates of the situation and prospects of the plantation rubber industry, he can only regard its present extent as a temporary movement. He is not aware that there is any justification for the suggestion that unemployment in this country has arisen or is arising as a result of the present prices, and as at present advised, there appears to him no ground in present circumstances for a special inquiry, or for proposing to the Governments in Ceylon and Malaya that the time has come to repeal their legislative measures. The amount which can be exported at the minimum duty is increased by 10 per cent. quarterly if the price remains above 18d. a pound. If therefore there should prove to be a real shortage it will in the course of the next few months be possible to release the maximum production, and there is no reason, if a continued demand is expected, why growers should not increase their production in anticipation of this. The whole situation is being carefully watched.

Colonel DAY

Is the Under-Secretary aware that, since the introduction of the restriction scheme, the rubber from the Dutch plantations has increased from 15 per cent. to 37 per cent.

Mr. ORMSBY-GORE

I am aware of it.

Mr. WADDINGTON

Is the hon. Gentleman aware that the bulk of the rubber which middlemen are now handling at 4s. per 1b. has been sold by the producer at 1s. 4d. and 1s. 10d. per 1b.?

Mr. ORMSBY-GORE

I am aware of that.

Mr. WADDINGTON

Is he also aware that in February next the export restrictions under the Stevenson scheme will come to an end, and all the producers know this and are accumulating stocks, and will it not be in the interests of trade and the regulation of prices that more exports should be permitted now, and thus prevent a slump in February.

Mr. ORMSBY-GORE

That is a question which is rather too long for me to answer as a supplementary question. Yesterday I made a small slip in answering this question which I will correct. The whole matter is watched with the advice of an expert committee, and while we agree with the hon. Member that prices are likely to come down consideraably from the present speculative boom, we do not think the abolition of the Stevenson scheme, or its modification, would materially assist now or in a few months' time.

Mr. THOMAS

Will the Under-Secretary consider the advisability of the Government making an immediate statement with regard to the future of the scheme. The important point for the moment is the uncertainty as to whether it will continue, and will the Government undertake to make an early statement on this question?

Mr. ORMSBY-GORE

I will consult my right hon. Friend on that point.

Mr. KIRKWOOD

Is it not strange that if this had happened to be a case of the workers, at once the whole of those hon. Members sitting on the benches opposite would be up in arms and say that this was a case of "ca'canny."

Mr. ORMSBY-GORE

I would like the hon. Member to understand that this scheme was in operation when the late Government were in office.

Mr. KIRKWOOD

But two blacks do not make a white.

Mr. ORMSBY-GORE

There is no restriction of production now. It is only an automatic scheme whereby only a limited proportion of the standard output is allowed to be exported at a minimum rate of exportation. Therein there comes to be paid to the Ceylon and Malay Governments an increased amount of duty, and there is no question of ca'canny about it. The whole object has been to preserve the existence of the industry by which thousands of people obtain their livelihood.

Several hon. Members rose—

Mr. SPEAKER

This question can be raised next week on the Estimates for the Department.