§ 1. Mr. John Hallasked the Secretary of State for the Colonies what was the statement of policy issued by the Gambia Government in April, 1955, with regard to the fixing of groundnut prices and the presentation of the Budget for 1956.
§ The Minister of State for Colonial Affairs (Mr. John Hare)In this statement the Gambia Government announced their intention to reduce the price paid for groundnuts in the territory to conform more closely with world prices, and the steps to be taken to minimise the effects of this adjustment upon the economy. These steps include a reduction in the export duty on groundnuts, the use of a stabilisation fund, and the adoption of an unbalanced Budget in 1956.
§ Mr. HallDoes my right hon. Friend agree that this unsatisfactory Budget position is due very largely to the fact that the Groundnuts Board established a producers' price at a level which the Board knew would involve a considerable loss to itself and to the Treasury? If that is so, does the Board still retain the full confidence of the Gambia Government?
§ Mr. HareIt would not have been possible to have inflicted on the Gambian economy the full result of making the groundnuts sellable at the world price. The Board has the confidence of the Government in Gambia, and I think we can be reasonably assured that this was the right thing to do.
§ Mr. J. JohnsonIs the Minister aware that because of these conditions a very 1156 large amount of the last harvest was smuggled out of the Gambia and went to Senegal to obtain better prices? Is not this a most unsatisfactory state of affairs?
§ Mr. HareThe Governor is well aware that a considerable amount of smuggling went on, and the strongest representations have been made to local officers to see that there is no repetition of it this time.