§ 88. Mr. Skinnardasked the Secretary of State for the Colonies what measures to reduce the cost of living are being taken by the Government of Northern Rhodesia; and whether similar measures are to be taken in Nyasaland and East Africa.
Mr. Creech JonesAs a result of interim recommendations by the Cost of Living Commission, which started its work in June of this year, the following steps have been taken by the Northern Rhodesian Government to reduce the cost of living in the territory:
- (a) The price of wheaten flour and meat has been reduced to that prevailing on 1st August, 1947, entailing an estimated subsidy of £40,500 per annum.
- (b) Customs Duties on a wide range of essential articles, such as blankets, clothes, enamelware and bicycles, have been suspended at an estimated loss to revenue of £163,000 per annum.
- (c) The price of maize-meal for Africans living on the line of rail has
74 been reduced from an average price of 19s. 6d. per bag to approximately 15s. 6d. per bag, at an estimated cost of £150,000 per annum. Maize was already subsidised to the extent of £240,000 per annum, so that the total estimated annual cost of the subsidy on this essential item of food is £390,000. The Acting Governor has informed me that he is confident that these concessions will bring a real measure of relief to the lower wage-earners, especially Africans.
As regards measures in other territories, I am obtaining the most recent information from the Governors and I will communicate with the hon. Member later.