HC Deb 02 July 1926 vol 197 cc1479-80W
Captain LODER

asked the Secretary of State for the Colonies, seeing that, when the Stevenson rubber restriction scheme was introduced, the price of 1s. 3d. for rubber was fixed as representing a fair return to plantations which, it was estimated, could produce rubber at about 10d. per lb., whether he is prepared to make a statement explaining the motives which led to an announcement by the Colonial Office at the end of April last to the effect that restriction of rubber marketed by platations in the British East Indies would recommence in the August-October quarter of this year if the average price of the commodity on the London market during the current quarter was less than 1s. 9d.?

Mr. AMERY

When the scheme was introduced it was generally agreed that it would be fair to the various sections of the industry to base the provisions on the maintenance of an average range or prices round about a price from 1s. 3d. to 1s. 6d. a pound, so that a 5 per cent. or 10 per cent. increase of the amount of rubber exportable at the minimum rate of duty should take place when average prices of not less than those mentioned were attained for any of the quarterly periods. As my hon. and gallant Friend will be aware, for many months average prices were below this range, and when ultimately, some 12 months ago, a. very rapid rise in the spot price took place, with a consequent upward movement in the prices at which forward contracts were arranged, the conditions were such as to make it necessary to review the basis on which the scheme had been prepared in 1922. In these circumstances it was decided by His Majesty's Government that revision of what may be termed the pivotal price range was required to bring the restriction measures more into line with actual conditions in the industry. At the same time the concessions which have from time to time been made in the direction of increasing the assessments of standard production of estates in Ceylon and Malaya have resulted in the increase of actual exports to such an extent as to require the provision of some more immediately effective degree of restriction than was contemplated in the existing scheme in the event of the average price of rubber falling below the pivotal range.