HC Deb 03 July 1961 vol 643 cc1050-3

(1) On the Southern Cameroons ceasing to be administered by Her Majesty's Government under the trusteeship system of the United Nations, section two of the Import Duties Act, 1958 (Commonwealth preference) shall have effect as if the Southern Cameroons were a country named in subsection (4) of that section (independent countries entitled to Commonwealth preference):

Provided that the Southern Cameroons shall not by virtue of this section be treated as continuing to be so named after the end of September, nineteen hundred and sixty-two.

(2) In this section "the Southern Cameroons" means the area comprised at the passing of this Act in the territory then known as the Southern Cameroons.—[Mr. Erroll.]

Brought up, and read the First time.

5.30 p.m.

The Minister of State, Board of Trade (Mr. F. J. Erroll)

I beg to move, That the Clause be read a Second time.

The purpose of this new Clause is simple. It arises from the decision by the voters of the Southern Cameroons at a plebiscite held in February this year to join the Cameroun Republic rather than to join Nigeria. As the House will know, the Southern Cameroons is at present administered by Her Majesty's Government under the trusteeship system of the United Nations. This trusteeship will terminate on 1st October this year, when the Southern Cameroons joins the Cameroun Republic.

As the law stands, the Southern Cameroons would automatically cease to be part of the Commonwealth preference area when the trusteeship ends.

The sudden loss of entitlement to Commonwealth preference would be a serious blow to the economy of the territory, which is based on the cultivation of a variety of tropical produce, most of which is sold on the United Kingdom market. Of these various tropical products, easily the most important crop in the Southern Cameroons is bananas. Bananas enter the United Kingdom duty free from countries in the Commonwealth preference area, but the duty on bananas from other countries is at the rate of £7 10s. per ton. This represents a very substantial margin of protection for Commonwealth producers in the United Kingdom.

As we import annually about 70,000 tons of bananas from the Southern Cameroons—about one-fifth of our total supplies of bananas—I am sure that the House will appreciate that the value of our preferences to the economy of the Southern Cameroons is very considerable, and there is incidentally, a considerable British investment in the Southern Cameroons banana plantations. We are satisfied that other markets could not readily absorb immediately such a large quantity of bananas.

In the longer term, the position may change. As part of the Cameroun Republic the Southern Cameroons may gain the advantage of preferential entry into the French market and of association with the European Economic Community, but whatever benefits may accrue to its economy as a result of factors such as these, it seems reasonably certain that they will not immediately offset the loss of entitlement to Commonwealth preferences.

Mr. Sydney Silverman (Nelson and Colne)

The right hon. Gentleman has been learning.

Mr. Erroll

I am always learning.

Her Majesty's Government have decided, therefore, subject to the approval of the House, that we ought to maintain our preferences for the Southern Cameroons for up to a year. This will give us time, in consultation with the other parties involved, to consider how the trading arrangements of the Southern Cameroons should be adjusted to accord with the new international position of the territory.

The Clause before the House will, if enacted, allow products of the Southern Cameroons to continue to be eligible for Commonwealth preference until the end of September, 1962. Incidentally, there is already provision in the Import Duties Act for removing countries from the Commonwealth preference area by Order in Council. We shall have the power, therefore, subject to the approval of Parliament, to end the preference before the end of September, 1962, if this should for any reason seem desirable.

I hope that this explanation will enable the House to accept this short but useful new Clause.

Mr. John Arbuthnot (Dover)

We should not pass this new Clause without saying "Thank you" to my right hon. and learned Friend the Chancellor and to the Government for this concession, which will help the Southern Cameroons very considerably.

As my right hon. Friend has pointed out, the main help will go to the growers of bananas, and, with the Southern Cameroons going out of the Commonwealth by joining the Cameroun Republic, it will mean that those people who are growing bananas in Southern Cameroons will find considerable difficulty in securing alternative markets. Therefore, I think that this new Clause is extremely valuable.

There is just one question which I should like to ask my right hon. Friend. The operation of the new Clause finishes in September, 1962. Is it in mind that if new arrangements have not been able to be made for the Southern Cameroons producers of bananas to find alternative markets, it might be continued in operation beyond that date?

Mr. Donald Chapman (Northfield)

I should also like to ask a question about this new Clause. I fully understand that if a country remains in the Commonwealth it is fully entitled to have the benefit of Commonwealth preference, but are there any other examples of this being done for a country which is leaving the Commonwealth, when the preference has been continued for countries leaving the Commonwealth in this way? After all, it is a little hard on, for instance, the West Indian producers of bananas if, in fact, a country can leave the Commonwealth and still have Commonwealth preferences.

I know that this is a generous gesture, and I would not wish it to be withdrawn, but I should like to know what limit the Government propose to their generosity to a country outside the Commonwealth, in the interests of Commonwealth countries.

Mr. Erroll

Perhaps I can answer the two Points together. In reply to my hon. Friend the Member for Dover (Mr. Arbuthnot), the intention is that the arrangement should come to an end in September, 1962, and we would not like to give a commitment beyond that point, because there are a number of factors which could arise during next year, one of which might well be the attitude of other Commonwealth countries which are banana suppliers to this country. We must remember that we are not giving a new preference, but that what we are doing is to maintain the status quo for a further year of banana growing.

There are substantial precedents for having preference arrangements for countries that have left the Commonwealth. I need only mention in that connection Burma, Ireland and South Africa. I think that other Commonwealth countries will see the reasonableness of what we propose. I hope that my hon. Friend will be reassured, but I would rather not give any undertaking about its continuation beyond that mentioned in the new Clause.

Question put and agreed to.

Clause read a Second time and added to the Bill.