§ 10. Viscount Hinchingbrookeasked the till Secretary of State for the Colonies whether he is aware that the free export of citrus fruit from Cyprus is prohibited; that the costs of producing the fruit have risen by 400 per cent. on prewar costs and that the effect of the marketing scheme is to raise prices to producers only to 75 per cent. on prewar prices; and what action he is taking in the matter.
§ Mr. George Hall:All exports from Cyprus are still subject to export licence, but these licences are granted freely for grapefruit and lemons. The Ministry of Food contract price for oranges was a least as favourable as the price paid to Palestine. As this figure was not sufficient to provide a profit for the producers in view of the high cost of production, and the prospects of disposing of the crop elsewhere were doubtful, the Cyprus Government agreed with the producers to 88W purchase the entire crop, to set off possible export loss against profits of local sales and to spread profit or loss evenly among producers. As yet an initial payment has been made to the producers. Additional proceeds depending on market price locally will be distributed at the end of the season. I cannot yet say how the final return to the producer will compare with the prewar price but it is expected to be at any rate twice the prewar figure and, therefore, well above the 75 per cent. increase quoted by the hon. Member. Production costs as reported are approximately three times the prewar figure.