§ Mr. McNamaraasked the Secretary of State for Trade if he will make a statement on his discussions with the Ceylon Association about conditions on the British-owned tea estates before their recent nationalisation.
§ Mr. ShoreThe nationalisation of all tea estates formerly owned by British companies was announced by the Government of Sri Lanka on 11th July and became effective on 17th October.
I have been in close touch with the Ceylon Association, whose membership includes the large majority of the British companies which until recently owned tea estates in Sri Lanka. I urged that the companies should do all they could to improve conditions on the estates in the period before nationalisation, particularly in the light of the recommendations made last May by a group of hon. Members under the chairmanship of my hon. and learned friend the Member for Warring-ton (Mr. Williams).
The President of the Association has now reported to me in the following terms on the progress made before nationalisation in implementing the main recommendations of the Williams report:
320WHousing.—Better trading results in 1975 allowed companies to make effective progress in improving housing for estate workers. Some companies started new building programmes and others aimed to accelerate existing programmes.
Health.—With assistance from the Planters' Association's Medical Scheme, arrangements were being made to train more apothecaries and midwives. A number of estates investigated, and some gave effect to, the strengthening of medical inspection staff.
Although more drugs were available from Government sources than in 1974, rising costs limited supplies. Many companies authorised additional purchases of drugs where these were required.
The supply of iron pills was being investigated, but availability on the scale required was doubtful and the costs had still to be assessed.
Food for estate workers and their families.—The supply and issue of rationed food was strictly controlled and the holding of extra stocks was prohibited. Estates had made land available for food production where such land existed and had not been taken over under the land reform legislation.
Wage increases and the derationing of flour earlier this year had improved food supplies to estate workers and their families. In some cases stocks of subsidised foodstuffs purchased for estate workers were not being used.
Thiriposha—soya-based flour mix—was still only available to a limited number of estates for issue to infants and pregnant and nursing mothers.
Wages.—Since the beginning of 1974 there had been three statutory increments of 10 per cent. each, and with better trading conditions estates had also been able to offer more regular work.
The President of the Ceylon Association has also reported that some estate companies were already giving effect to a number of the recommendations in the report prepared by the group of hon. Members under the chairmanship of my hon. and learned Friend the Member for Warrington before it was published. He points out that the companies now have no direct interest in, or responsibility for, the management of their former properties 321W in Sri Lanka. However, following discussions he has had in London and Colombo he concludes that, in general, the estate companies were able to do more than had previously been possible to improve conditions, and that these improvement programmes were continued up to the date of nationalisation.
Her Majesty's Government believe that the solution to the problems of the tea industry, whether in Sri Lanka or elsewhere, must be sought on an international basis. We are, therefore, discussing with the main Commonwealth tea producing countries the scope for an international agreement on tea.