HC Deb 13 February 1946 vol 419 cc356-8
17. Major Guy Lloyd

asked the Secretary of State for the Colonies what representations he has had regarding the low price of rubber in Malaya; what action he is taking; on what terms, and by whom, was the recent bulk sale of Malayan rubber made to the U.S.A.; and why was the price so low.

Mr. George Hall

I have received representations regarding the price of rubber in Malaya from the Rubber Growers' Association and have also had a telegram from Kuala Lumpur purporting to be sent on behalf of all sections of the rubber producing industry With regard to the second part of the Question I would refer to the answer given to the hon. Member for Hornsey (Mr. Gammans) on 6th February. The recent bulk sale of Malayan rubber to the U.S.A. was made by His Majesty's Government at a price of 20¼ United States cents f.o.b. Malaya, which represents the actual cost to His Majesty's Government of the rubber now being shipped. The price is effective until 31st March.

Major Lloyd

Is the right hon. Gentleman aware that under this most iniquitous arrangement the cost of production is not nearly met for the producer and there is nothing like rehabilitation of the plantations? The only people who score are the Americans. Why?

Mr. Gallacher

Private enterprise.

Mr. Hall

I dealt with this matter very fully in a reply I gave to a Question put to me last week.

Mr. Walter Fletcher

Is not the Minister aware that this is in fact a subsidy paid at the expense of the housewife in the loss of dollars to the American consumer?

Mr. Hall

That is not the case; the price paid for American rubber is similar to the price which is paid to the French and to the Dutch.

Mr. Fletcher

That does not alter the fact that it is a subsidy.

Mr. John Lewis

Is the Minister sure that if he decides to raise the price of rubber in Malaya it will bear some direct relationship to the cost of production, and the wages paid to the natives?

Mr. Hall

An economic adviser has been sent to Malaya to deal with the question of fixing a price and also to deal with the internal economic situation there.

Lieut.-Colonel Sir Walter Smiles

Could the Minister tell the House what is the actual cost of production of rubber today and what was the cost in 1938 and 1939?

Mr. Hall

No, Sir, I must have notice of that question.

Mr. Gammans

Why was the price fixed at this level without any consultation whatever with the rubber growers who at the moment are overwhelmingly Asiatic rubber growers?

Mr. Hall

It must be understood that the price fixed was fixed for rubber which was in stock. Thereis very little rubber being produced in Malaya at the present time; in fact, the large estates have not produced any at all. A number of small producers are producing and they say they can produce at the price which they are paid.

Mr. Gammans

What representations have the right hon. Gentleman had to show that they can produce? The overwhelming amount of rubber is being produced by Asiatics.

Mr. Ralph Assheton

Can the right hon. Gentleman assure the House that His Majesty's Government are paying the greatest regard to the need for dollars which we want to pay for our food?

Mr. Hall

We are well aware of the importance of dollars.

Major Lloyd

In view of the unsatisfactory nature of the reply, I beg to give notice that I will raise the matter on the Adjournment.

Mr. Kirkwood

The rubber robbers.

28. Major John Morrison

asked the Secretary of State for the Colonies what steps he proposes to take to ensure that the native producer of rubber in Malaya receives equally fair treatment and remuneration with the native producer of rubber in Ceylon.

Mr. George Hall

I would refer the hon. Member to the very full answer which I gave to the hon. Member for Hornsey (Mr. Gammans) and my hon. Friend the Member for West Leicester (Mr. Janner) on 6th February, to which I have nothing to add.

Mr. W. Fletcher

Will the right hon. Gentleman agree that this is the first occasion on which the Americans have contracted out from taking the proportion of rubber they were normally taking, and that this is in view of the very high price, which means that many fewer dollars will accrue to this country?

Mr. Hall

The price for Malayan rubber was fixed in consultation with other Government Departments.