HC Deb 26 January 1944 vol 396 cc680-1
33. Sir L. Lyle

asked the Secretary of State for the Colonies whether he has any statement to make regarding colonial sugar production.

Colonel Stanley

Yes, Sir. Authority has been given to the Ministry of Food to purchase all colonial exportable sugars up to the end of 1946, and it has also been decided to seek Parliamentary approval for the amendment of the Colonial special preference certificate system in such a manner as to bring it more into line with present day levels of production. With my hon. Friend's permission, I will circulate in the OFFICIAL REPORT a statement giving full details of these two decisions.

Mr. Riley

Is there any consideration as to the effect of the price of sugar which the Government are to purchase from the West Indies?

Colonel Stanley

I think if the hon. Member will read the detailed statement he will see the effect this has on prices.

Following is the statement: In order to encourage sugar producers in the Colonies, and to afford them security, His Majesty's Government authorised the Ministry of Food to undertake to purchase their total exportable surpluses, up to the end of 1946, in return for an undertaking to make those surpluses in their entirety available to the Ministry. Prices will be subject as hitherto to review from time to time in the light of conditions prevailing. His Majesty's Government wish to asknowledge the co-operation which they have received throughout the war from sugar producers, and they are glad, by means of the proposed three-year contract, to afford the industry a considerable degree of security and thereby enable them to make their full contribution to immediate and post-war needs. The production of foodstuffs in the Colonies for local consumption has not receded in importance and policy will be determined in each Colony in the light of local needs for food production. It has also been decided to modify the existing arrangements regarding the Colonial special certificated preference. It was announced in Parliament on 1st May, 1940, that it was proposed to continue unchanged during the war the allocations to individual Colonies of quotas under the special colonial preference on sugar granted under the Finance Acts of 1932 and 1943. His Majesty's Government have lately reviewed this question, having regard to the long period which has elapsed since the allocations were originally made, the growing discrepancies which have developed between benefits enjoyed by the several Colonies, and the changes which have taken place in the general sugar situation, and, subject to the approval of Parliament for the necessary amendment in the Finance Act, they propose to raise to 400,000 tons the maximum quota of sugar which may be admitted at the special colonial preferential rate. Quotas for the purpose of this special preference will then be allocated as follows. For the financial year 1944–45 and subsequent years until further notice, each Colony will be entitled to a quota equal to one-third of its average exports of sugar to all destinations, taken to the nearest 100 tons, during the three calendar years immediately previous to the commencement of the financial year; provided
  1. (i) that no Colony's quota will, pending further notice be reduced below the quota to which it is entitled under existing arrangements, and
  2. (ii) that any Colony which exports during the financial year a quantity of sugar less than the amount represented by its Special Preference Quota will be required to surrender so much of its quota as corresponds to the deficiency.
 It remains the intention of His Majesty's Government to review the whole special preference arrangements after the war.