§ Mr. Iremongerasked the Secretary of State for the Colonies if he will make a statement explaining the origins of the present unrest in the sugar industry in Fiji and the outlook for the future.
§ Mr. Iain MacleodThe sale and purchase of cane since the 1950 crushing season has been governed by a 10-year agreement between the Colonial Sugar Refining Company and each individual grower which expired on the 31st May, 1960. In addition to the price clause under which the price paid for cane is determined in accordance with a scale which varies with sugar content and with 249W the proceeds received from the sale of sugar, the Agreement included various provisions regarding varieties, cultivation, deductions for burnt cane, etc.
2. In January 1959 the Company circulated to growers the draft of a new agreement for a further 10-year period beginning with the 1960 crushing season. This differed considerably from the previous agreement and was much more complicated. At present export prices the new price scale would give rather less to the grower than he obtained under the old agreement. Discussions took place between the Company and the Growers' associations during the latter part of 1959 at which the growers expressed strong opposition to the new proposals and were unable to accept the Company's explanation that, owing to rising costs and changing circumstances, 'the previous agreement had for some years provided such an inadequate return on its capital as to endanger the proper development of the industry.
3. In November, 1959, the growers' representatives submitted to the Company an alternative draft agreement under which the growers would receive 70 per cent. of the sugar proceeds. This is greatly in excess of the proportion they received under the old agreement and was not acceptable to the Company. After negotiations had continued for some months the Company informed the growers in March, 1960, that owing to the very great increases in wages which have taken place in some local industries earlier this year they could no longer commit themselves to a 10-year agreement but would be prepared to enter into a 2-year agreement. This was not acceptable to the growers and no progress was made. The growers then decided not to plant any cane this year and threatened to refuse to cut their cane unless a satisfactory agreement were reached.
Negotiations between the Company and the cane growers were resumed on 12th July. On 24th July the Company concluded an agreement with representatives of Kisan Sangh and Fijian growers but representatives of Maha Sangh and Vishal Krishak Sangh refused to accept this. A split has therefore occurred among the cane growers with members of Kisan Sangh and Fijians wishing to harvest cane but members of Maha Sangh refusing to do so on the terms offered.
250WThe future position is difficult to assess accurately until the growers have reached some agreement among themselves and resume negotiations with the Company.