§ 36. Mr. Lunnasked the Secretary of State for the Colonies on what grounds the Government of Kenya Colony has agreed to the suspension for two years of payment of the royalty on gold won in that Colony?
§ Mr. Ormsby-GoreOn the advice of the Governor of Kenya, I have decided to suspend the royalty temporarily because its payment absorbed too large a proportion of the small profits being won by the industry at present, and it is thought that the temporary suspension of royalties will enable mining companies to continue work and development the cessation or curtailment of which would have disadvantageous economic and social consequences. I have suggested to the Governor that in lieu of royalty a scheme of profit sharing should be adopted so that if any profits are, in fact, earned, the Government may secure a substantial share.
§ Mr. Ormsby-GoreOh, yes; it applies everywhere in Kenya.
§ Mr. McEnteeWill the right hon. Gentleman say whether it is a temporary suspension and has any time limit, or whether it is to become a permanent suspension?
§ Mr. Ormsby-GoreIt entirely depends on the future of the industry. Admittedly the amount of gold being got is small as compared with other gold-producing countries in Africa.
§ Mr. MacquistenWill it not be very foolish to levy royalties from low grade mines? Will it not prevent their being worked and so cause their ore to be left in the ground as an underground monument to Government stupidity and cupidity?