HC Deb 25 November 1946 vol 430 cc234-8W
Sir R. Glyn

asked the Secretary of State for the Colonies whether he will give a list of those Colonies whose products are exported to the exclusive order of the various controls of the Board of Trade and other Departments and at a fixed price; whether he will give, in each case, a list of the commodities thus restricted from obtaining the world market price; and how far this policy affects the figure obtained by native growers for their products.

Mr. Creech Jones

There are no Colonial territories in which there are general prohibitions of exports except to this country. Such prohibitions would indeed be contrary to the declared policy of His Majesty's Government. In certain instances, however, arising either from international allocation of sources of supply or because both parties concerned saw commercial advantages therein, agreements have been made for bulk purchases of certain products of individual Colonies by the Board of Trade, the Ministry of Supply and the Ministry of Food. The contracts are normally negotiated on a commercial basis between the purchasing Department of His Majesty's Government and the producers through the agency of the Colonial Government. The hon. Member will appreciate that owing to the world shortage of most of the commodities concerned it is difficult to speak with precision of their market price but it is my constant endeavour to ensure that Colonial producers may be assured of a fair and it possible a stable price for their products. In some cases where the Colonial producers have agreed to contract for a longer period they have recognised that the stability thus offered compensates for any inability to take advantage of short-lived upward fluctuations in prices. I append a list of the commodities which are purchased exclusively by Government purchasing Departments in this country.

Sugar. The Ministry of Food has contracted to purchase the total exportable surplus of all the sugar producing Colonies until the end of 1949. The territories concerned are the British West Indies, British Guiana, Fiji, Mauritius, Uganda and Tanganyika. The price is adjusted yearly by agreement between my right hon. Friend the Minister of Food, and representatives of the producers and takes into account the costs of the producers and their costs of living as well as the trend of the world market.

Tea. The Ministry has since 1942 been the exclusive buyer of the exportable surplus of tea from Ceylon, and has resold to other countries at cost price according to Combined Food Board and International Emergency Food Council allocations. The price has been adjusted yearly by negotiation to cover increased costs, wage increases, etc. Similar arrangements have been made whereby the Ministry of Food (have purchased the exportable surplus of tea from Kenya, Uganda, Tanganyika and Nyasaland. Ceylon has recently indicated that she does not wish to continue to bulk sell her crop to the Ministry of Food after the end of this year.

Coffee. The Ministry of Food at present purchase the total crop from Kenya, Tanganyika and Uganda for subsequent allocation as directed by the I.E.F.C. The price is adjusted yearly so as to provide a fair return to producers. Representatives of East Africa growers have recently visited this country and preliminary negotiations have taken place in connection with a five year contract whereby the U.K. requirements only will be purchased by the Ministry. The Ministry also purchase the coffee crops of Jamaica, Gold Coast and Sierra Leone on similar terms.

Copra. The Ministry has since 1942 been the sole purchaser of copra from Ceylon, East Africa, Seychelles and the British Western Pacific Islands, although considerable quantities of the total purcases are consigned elsewhere. At the request of Ceylon the Ministry of Food agreed in January this year to purchase at a fixed price the exportable surplus of copra from Ceylon for a period of four years. The price then negotiated was at the time above the world price. The price paid to other colonial producers has since been advanced in conformity with the Ceylon price.

Palm products and oil seeds. The Ministry of Food purchase the great part of the groundnut crop from Nigeria and Gambia, of palm oil and palm kernels from Nigeria and Sierra Leone. The price is fixed each crop season by consultation between the governments of the territories concerned, the West African Produce Control Board and myself. The recent and violent upward movements in the market price of oils and fats which has been occasioned by the release of American controls have created a disparity in the price which is at present being realised for these oilseeds, and I am at present in communication with my right hors. Friend the Minister of Food on this matter. The exportable surplus of palm oil from Malaya is also purchased from the estates by the Ministry of Food on a contract expiring in mid-1948.

Tin. The Ministry of Supply are the sole purchasers of tin concentrates in Nigeria and of tin metal and concentrates in Malaya. The price paid is generally related to what is believed to be, in the present circumstances, the world price, and has been agreed with the producers.

Sisal. The Board of Trade have purchased the entire crop from East Africa up to the end of 1947. The price has been settled on the basis of cost of production, having regard to world prices, in consultation with the producers.

Phormium Tenax. The Board of Trade have purchased the entire St. Helena crop until the end of 1947. The price has been related to the East African Sisal price, in accordance with prewar comparative price levels.

Hides and Skins. The Board of Trade purchase the exportable surplus from East Africa and Nigeria. The price is adjusted when necessary to conform to that paid by the Board in other parts of the world. All skins are at present being directed to the United Kingdom by means of export licence control.

Cotton. During the War the Board of Trade purchased the entire exportable surplus from Nigeria. This agreement is now expiring and a new two year agreement is being arranged at a price which is related to the general two year average price expectation for this type of cotton. The Board of Trade have also purchased yearly the entire crop of Sea Island Cotton from the West Indies. The price for this specialised type of cotton is calculated to give a fair return to producers with whom it is agreed.