§ 38. Mr. H. Hyndasked the Minister of Food the world price per ton of copra; why the price paid to Fiji is £53 15s. per ton whilst the local buying price is £55 5s.; why we are paying a lower price of £48 10s. to New Guinea; and to what extent prices below the world price are being paid to other colonies.
§ Mr. WebbThe world price of copra has recently risen sharply, and is now between £120 and £135 a ton free on 1736 board. The prices we are paying to the Colonies and Mandated territories, from which we buy copra under long term agreements, are considerably lower than this, because the annual price variation under those agreements is limited to 10 per cent. This provision was designed to avoid short-term price fluctuations, and, while we are getting the benefit at present, it gives the producer security against a slump in the market during the nine years for which the agreements run.
The prices for Fiji and New Guinea are different, because the yearly periods for which they are negotiated do not coincide but the price will be the same after 1st March, My hon. Friend will recognise that these long-term agreements will be valueless if they do not insulate both parties from these large fluctuations in the world prices.