How To Give Relief To
p. 31 · Read in the full issue
Solomon Is. Copra Producers.
[Letter to the Editor ]
Copra prices are going from bad to worse and, in the circumstances, it should be worth while to consider the position, especially as far as production in the Solomon Islands is concerned.
Last financial year, ended June 30, 1932, prices averaged about £14 per ton, and a plantation yielding, say, half a ton per acre was able to show a profit over and above expenses £3 per ton. A small amount would be written off for de preciation on houses, machinery and tools (nothing on the plantation). This may not seem too bad, but we must consider the advantage we had of 25 per cent, ex change, which just about accounted for the whole of the surplus. Thus, without the exchange, we should only have just about cleared expenses. With prices £3 per ton lower, and without the exchange, it would be interesting to consider how many plantations could carry on to-day.
Can anything be done to relieve the position until prices improve? Freights amount to about £6 per ton to contin ental ports, shipped via Sydney, and prices paid for copra in the Islands by the two Arms, Burns, Philp and Co., Ltd. and W. R. Carpenter and Co., Ltd. are evidently based on this cost.
Many plantations have already stopped recruiting, which in the near future means reduced output; and one would think it would pay for these concerns to meet the planters, even if they should have to reduce their dividends until more normal times arrive.
A couple of years ago the Deputy Commissioner was approached and a re quest was also made by the Advisory Council that recruiting should be allowed on the basis of £6 per year and the right of entering on contracts for three years instead of two. At last meeting of
the Council this question was not again raised, much to the disgust of many in terested, especially as the possibility of reversion to the £6 per year contract was held out.
In New Guinea and the Mandated Ter ritory wages are from £3 to £6 per year and all through the East lower rates for labour prevail. They are twice that in the Solomons. Some years ago, when copra realised decent prices, the rate of wages was raised voluntarily by the Solomons planters, so it seems no reason why labour here, the same as everywhere else, should not bear their share of the burden.
If these two concessions are granted it should make a difference of £4 per ton, which would put us on an even footing with other producing countries and probably carry us over our present difficulties, if carried out at once.
The much discussed problem at pre sent of introducing Asiatic labour could probably be left for a while, as it seems to raise a lot of controversy, and with present prices of produce the local labour supply is quite adequate.
I am, etc.,
Interested.
Brisbane, 4/4/1933.
