HC Deb 24 February 1947 vol 433 cc1696-7
89. Mr. T. Reid

asked the Minister of Food, on what terms as to quantity and price he has entered into a bulk contract for the purchase of Ceylon copra for future supplies; and if this contract was made before the Ceylon export duty on copra of £15 a ton was imposed.

Dr. Summerskill

An agreement was made between the Governments of the United. Kingdom and Ceylon on the 25th of February, 1946, under which we undertook to buy Ceylon copra for a period of five years at a price of 100 rupees per candy to the producer in Ceylon. The agreement relates to the available surplus subject to limited exports of coconut products in other forms. The agreement was made before the Ceylon Government imposed an export duty on copra.

Mr. Reid

Why was not the agreement made earlier, so that the export duty would not fall on this country?

Dr. Summerskill

I have already said that the agreement was made beforehand, but the hon. Gentleman will agree with me that this is a very delicate matter and I think we should leave further discussions until later on.

Mr. R. S. Hudson

Was the agreement made with the Government of Ceylon or with the producers?

Dr. Summerskill

With the Government of Ceylon.

Mr. Hudson

Was it not lacking in foresight not to include some saving clause in order to avoid this obvious way of raising the price against us?

Dr. Summerskill

It is difficult always to anticipate the actions of everyone.

90. Mr. Walter Fletcher

asked the Minister of Food whether, in regard to the five-year contract for copra and coconut oil signed in 1946 between His Majesty's Government and the Government of Ceylon, the recently imposed export tax duty will fall upon His Majesty's Government.

Dr. Summerskill

I understand that the Ceylon Government intends to levy the duty upon all copra and coconut oil exported from Ceylon.

Mr. Fletcher

Is the hon. Lady aware that it is ordinary commercial practice and prudence to put a clause into a contract such as this that export duty is for sellers account, and that that omission will cost this country £15 a ton on a very large amount of copra?

Dr. Summerskill

I will certainly bear that in mind.

Mr. R. S. Hudson

Does the hon. Lady regard this as a good example of the benefits of bulk purchase?