§ Mr. Jaggerasked the Secretary of State for the Colonies whether he is aware of the growing apprehension among the sugar planters of the British West Indies in regard to the absence of a clear indication of policy in future production; and what steps he is taking to allay this?
Mr. M. MacDonaldI am not aware of any general apprehension on this matter. The recommendations of the West India Royal Commission that the export quotas of the West Indian Colonies should be increased are receiving active consideration in relation to the probable needs of this country in war conditions and the reactions which such an increase would have on other Empire producers; and an announcement will be made as soon as possible. In fact all sugar-producing Colonies were advised some months ago to aim at an increase of production next year of 20 per cent. above their basic export quotas, which is roughly equivalent to the increase of 120,000 tons for the West Indies recommended by the Royal Commission.
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§ Captain Pluggeasked the Secretary of State for the Colonies why, in view of the Government's undertaking to the United Kingdom beet-sugar industry to meet the risk of rising costs, a similar undertaking is not given to Colonial sugar producers, having regard to their acceptance of a price no greater than that considered reasonable on a pre-war basis of production costs?
M. MacDonaldThe undertaking of His Majesty's Government to sugar-beet growers in the United Kingdom is in respect of the crop to be planted this spring and harvested later in the year. The price for Colonial crops which were in the ground when the war broke out and have been or are now being harvested for delivery during the next few months was fixed on the assumption that costs would be in excess of the pre-war level. The hon. Member can rest assured that full consideration will be given to the question of costs in fixing prices for the new contract starting next September.