Duty On Rubber

To Save Papuan Planters

4D. Per Pound On All

Foreign Production

(From Our Own Correspondent.)

Pt. Moresby, Nov. 8.

IN reply to the representations of the Lieut.-Governor (Sir Hubert Murray), urging that assistance for the rubber planters of Papua was absolutely essen tial if the industry was to be saved, advice was received by radio from Can berra on November 6, agreeing to pay a bounty of 4d. per pound on the pro duction of Papuan No. 1 sheet rubber, and to impose a duty of 4d. per pound on all rubber entering Australia from countries other than the Australian Territories.

This bounty has saved the situation for the larger plantations, raising the price to just above 8d. Smaller holdings, however, find the bounty not en tirely satisfactory, for the overhead costs of production are heavier, and they are still below the margin of pro fits.

But, considering how gloomy the outlook was a few days ago, when it was an extremely vexed question how to carry on at all, there should not be any complaints. The news has been a great relief to all the residents in the Territory.

The production in Papua in 1927-28 was 811 tons, but it dropped to about 470 tons the following year, owing to the bottom falling out of the market.

The price actually fell below 4d. per pound. Some years ago it brought 4/8 a pound—but, of course, that was in the boom days.

The steady fall in the price of rub ber is a serious matter for the Ter ritory. The annual value of Papua’s rubber export rose from £5,800 in 1921 to nearly £200,000 in 1926—in fact it has been equal to copra. There are over 6,000 acres under rubber in the Central Division alone, representing many sep arate plantations.

It is also a serious matter for the Administration. It owns one large and several small rubber plantations and three or four years ago, its profits from this source were not less than £7,000 annually. That is gone.