HC Deb 23 April 1952 vol 499 cc388-90
29. Mr. John Hynd

asked the Secretary of State for the Colonies what was the total amount in the Kenya Agricultural Betterment Fund on 31st December, 1950; and if he will give details of the amounts expended from the fund during the last full year for the purposes of encouraging development of African agriculture.

Mr. Lennox-Boyd

As my reply is rather long and contains a number of figures I will, with permission, circulate it in the OFFICIAL REPORT.

Mr. Hynd

Is the Minister not of the opinion that in view of the fact that more than £500,000 has now accumulated in this fund he ought to review the differential price charge as between European farmers and African farmers, which, I believe, is at the rate of 10s. per 200 pound bag now, and use the fund to its maximum to develop agriculture at a minimum charge to the African farmer?

Mr. Lennox-Boyd

As the hon. Member knows, these are very precarious businesses and it is important to keep in hand a considerable financial balance. I will bear in mind what the hon. Member says, but as one does not know from year to year what the demand will be it is important to have a substantial sum of money to meet unexpected contingencies.

Mr. Hynd

Is not the Minister aware that there are abuses of this practice going on in the territory? Is he aware, for example, that European farmers are buying African wheat from their squatter labourers, using it on their farms and selling their own wheat at nearly double the price?

Mr. Lennox-Boyd

I cannot accept what the hon. Member has said. While there is no such thing as a single Kenya Agricultural Betterment Fund there are a number of African district council betterment funds. The figures which I will give the hon. Member later are the result of the amalgamation of all these district council funds. As these district councils are composed entirely of Africans, the majority of whom are elected, I think they can be looked to for guidance on these points.

Following is the reply:

  1. 1. There is no such thing as a single Kenya agricultural betterment fund. There is a series of African district council betterment funds, into which are paid the proceeds from cesses on a variety of agricultural products produced in the African areas of the Colony. These funds are controlled and operated by the individual local authorities concerned, within the procedure laid down for the consideration and approval of the estimates of expenditure of African district councils.
  2. 2. The aggregate balance in respect of these funds as at 31st December, 1950, was £367,389, as compared to a total as at 31st December, 1949, of £340,644. The actual aggregate expenditure from all these funds in 1950, the most recent year for which actual expenditure is available, was £194,520, of which approximately £95,000 was transferred to the general revenue of the various African district councils concerned, at the specific request of these councils, for purposes such as expenditure on social services, schools and hospitals, and the balance of approximately £99,000 was utilised to encourage the development of African agriculture.
  3. 3. The aggregate balance in the agricultural betterment funds of £367,389 at 31st December, 1950, compares with the figure of £560,478 as at 31st December, 1951, which was given to the hon. Member for Attercliffe (Mr. J. Hynd) in reply to his Question on 2nd April.
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  4. 4. The balance in these funds is large because, as revenues from cesses are precarious, it is necessary to maintain a relatively large balance to ensure continuity of agricultural development projects and services.
  5. 5. Total estimated expenditure from these funds in 1952 is £255,995.
  6. 6. The main source of revenue to these funds is the cess on maize which is voted by the African district councils who in turn control expenditure from them through their estimates.
  7. 7. African district councils are composed of Africans, the majority of whom in all cases are elected.