§ 9. Mr. Fenner Brockwayasked the Secretary of State for the Colonies on what grounds the right to export timber from North Borneo has been restricted to seven companies, four of which are European; and whether he is aware that in consequence of this decision forty Chinese and native firms responsible for one-third of the timber production of the Colony may have to close down.
§ Mr. HareThe right to export timber has not been restricted in the way suggested. Annual licensees, to whom I presume the hon. Member is referring, will be able to export direct much more timber than they exported in 1954, and sell the remainder of their production locally. I have no reason to suppose that there is any danger of any of them having to close down.
§ Mr. BrockwayDespite what he has said, may I ask the right hon. Gentleman whether he is aware how this quiet and contented island is becoming a ferment of discontent as a result of this decision, 1164 and how this is regarded as a racket on behalf of a limited number of European companies, one of which was compensated by £1 million since 1952 to end a monopoly which is now being re-created? Will the right hon. Gentleman look into the matter?
§ Mr. HareI cannot accept what the hon. Member has said. I know the intention behind this policy: in the opinion of the Governor the major timber exporting companies, which have terms of silviculture imposed upon them—namely, that they have to replant, etc., after they fell—were being endangered by underselling by annual licensees, who have only a short-term interest in the whole of the forest areas of North Borneo. I can tell the hon. Member that this matter is being debated in the Legislative Council in March, and I shall see that those concerned are able to consider what he has said.
§ Mr. J. GriffithsWhile I am glad that the right hon. Gentleman is to reconsider the matter, may I ask him to bear in mind that representations I have received and which other hon. Members have received show very clearly that this is regarded—whether it is intentional or otherwise—as a step to favour big business and to penalise native producers, thus creating a bad impression both in North Borneo and beyond its shores? I hope the right hon. Gentleman will consider that very carefully when he discusses the matter later.
§ Mr. HareNaturally I shall. I do not think that we ought to get this matter out of perspective. For instance, it has been suggested that many annual licensees must stop their operations, but we have nothing to confirm that. All the points which have been made will be taken into consideration.
§ Mr. BrockwayIn view of the unsatisfactory reply, I beg to give notice that I shall raise the matter, with your consent, Mr. Speaker, on the Adjournment at the first opportunity.