35. Mr. Fraserasked the Secretary of State for the Colonies what is the extent of the subsidy now being paid to the sugar industry in Trinidad; and' what provisions regarding wages, working conditions and the welfare of the workers generally, are attached as a condition of the subsidy.
§ Colonel StanleyAs the reply is necessarily long I will, with the hon. Member's permission, circular it in the OFFICIAL REPORT.
§ Following is the reply:
§ After examination by a local Committee on the sugar industry, the Government of Trinidad decided to assist the industry by making a grant from local revenues of 800,000 dollars for three years ending in 1946, this being the sum required to meet interest and depreciation charges. It has also been, agreed that these two items should be removed from the formula for the calculation of the price to be paid for cane sugar and that all growers should be guaranteed that this price should not fall below 5.50 dollars per ton. The Colonial Government has, however, reserved the right to impose on all cane a eess not exceeding 50 per cent. of any increase over 5.50 dollars, the proceeds of which would be offset against the grant of 800,000 dollars. As a condition of this assistance, it is intended that the industry itself should assume the responsibility for encouraging the return of workers by adopting the principle of payment of an output bonus to those who complete a 1342 specified number of tasks within a given period, as recommended by the local committee. In addition, His Majesty's Government have agreed to contribute towards the cost of rehabilitating the industry by meeting the cost, amounting to approximately 400,000 dollars, of continuing during 1944 the replanting bonus of 40 dollars an acre which was paid during 1943. No conditions were attached to this payment, a large part of which of course goes to small independent peasant growers.