HC Deb 20 July 1961 vol 644 cc1439-40
5. Mr. G. M. Thomson

asked the Secretary of State for the Colonies if he will consider the setting up of a development corporation for the smaller islands of the Federation of the West Indies to encourage private investment in these territories.

The Under-Secretary of State for the Colonies (Mr. Hugh Fraser)

A Federal Development Loan and Guarantee Fund came into operation last January with a capital of over 8 million B.W.I. dollars provided by Her Majesty Government, the United States Government and local funds. This fund is designed to stimulate activity in the private investment sector throughout the Federation with special emphasis on small and medium sized enterprises. This I hope will be of especial benefit to the smaller islands.

Mr. Thomson

While welcoming the information that the Minister has given and also the fact that he has arranged for an economic mission to go to the smaller islands shortly, may I ask him if he will bear in mind that the Federation which is about to be set up as an independent country has minimal powers of central economic planning? It is very important that the smaller islands should go into this independent Federation not only with equal political powers but as near equal economic powers as possible. Is the right hon. Gentleman aware that Trinidad and Jamaica set up their own development corporations, and will he do his best to persuade the economic mission which is going out to set up a comparable development corporation for the smaller islands?

Mr. Fraser

I think that it should be based on the Federation as a whole. It should have a federal backing. I will certainly draw to the attention of the people concerned the point which the hon. Gentleman raises about these smaller islands.