How to Assist Industry

THE following are extracts from an article on the copra situation, written last year by Mr.

F. Harcourt Smith, of Waitavala, Taveum, Fiji: Over a long period of years—half a century steady progress has been made in the Fiji group in the planting and development of coco palms on a commercial basis. In recent years science has rendered valuable service to the work. Planters engaged in this branch of industrial pursuit have given their earnest and diligent attention to the development of their lands, in conjunction with a practical system of culture necessary for the improvement of the plant’s growth and yield of crop.

Struggling planters of to-day are now enmeshed in the maze of conditions associated with the world’s complex economic position. They are compelled to face a persistent fall in the value of copra.

This ubiquitous slump is not of recent origin.

It followed the merging of manufacturers’ interests overseas, and unless some protection is afforded it is inevitable that the European planters in tropical countries will go to the wall!

The formation of this affluent combine, whose interests are colossal throughout the United King dom and Europe, sounded the death-knell of com petitive markets —a serious blow indeed to planters.

It would not be unreasonable to say that if a third of the combine’s huge annual profits—obvi ously so easily reaped where they have not sown —were employed to stabilise the price of copra, it would bring about a feeling of optimism amongst copra producers the world over. A most substan tial credit balance would remain which should be sufficient to suit the take-all desires of any avari cious company. Were this system adopted, then planters’ costs of production (not including living expenses and any other commitments that have

to be met) would about balance. “Britannia rules the waves”; but a business concern is allowed to go blithely on ruling the destiny of ever so many of Britain’s loyal subjects!

Insofar as it concerns Fiji’s planter community, the outlook is pathetic. It would be interesting to learn just how much money has been put into coconut plantations, together with development and maintenance costs spread over many, many years. Candidly, the plight of the planter can no longer be hidden; the position is serious in the exact sense of the word.

Everyone realises the logical necessity for aid at the earliest possible moment. To whom can we look for help? I would suggest two schemes for consideration, viz.: (1) That the Government subsidise the industry to the extent of £2 per ton during the time the local buying price is at or under £7. The scheme could be definitely understood to be a palliative only. Let it be remembered that in the grant ing of a subsidy, the Government would, in directly, be recompensed to a degree, for the money would, of necessity, find an outlet for circulation again within the colony. As a suitable measure, the above appears to be a sound proposition for the powers that be to take into consideration one which I feel sure would meet the wishes of all concerned. (2) In addition, would not the Government con sider the question of raising an external loan of £100,000 at 3 per cent.? Many flourishing business concerns outside the colony are known to have invested largely in stock that returns a rate of interest thereabout. A certain established company, with extensive interests in this colony, may be prepared, if approached, to enter into negotiations with the Fiji Government in respect of their company’s position, which comprises the major share of the Immigration Fund. With the money in hand. I suggest the administration take over and liquidate the debts of planters—those who are in the hands of either banks or private financiers, and charge 4 per cent, for services rendered.

At the inception of the Unilever merger, I wrote to the press on two occasions, and, inter alia, pointed out the loss to planters of competitive mar kets, and what could be expected as a consequence.

Also, I advocated the desirability of converting a portion of the output of copra into nut-butter.

Once again I think it fitting to state that the present seems an opportune time for the science staff of the Agricultural Department—with the Government’s sanction —to put the suggestion into practice, utilising for the purpose the Tailevu factory for experimental purposes.

The continent of Australia, with its established dairying industry, encourages the manufacture of margarine in no less than twenty factories. Surely Fiji is in a position to do somewhat likewise?