New Copra Export Tax May Cripple

G.& E. Colony And Solomons Penalised

New Copra Export Tax May Cripple Rehabilitation Plans

BY recent proclamation, the High Com misioner for the Western Pacific (Sir Alexander Grantham, in Suva) an nounced that the export tax on copra had been raised in two of his Territories—to 25 per cent, ad valorem in the Gilbert &' Ellice Islands, and to 15 per cent, ad valorem in the British Solomons.

The value of the copra is to be assessed from time to time by the Resident Com missioners in those places.

This ha's come as a shock to the big companies which were planning to use the present high prices of copra in the rehab ilitation of shipping and trading services in those Groups.

Both the G. E. Colony and the Sol omons were badly hit by the war. The big shippers, traders and planters lost nearly everything. Copra is the only in dustry in both Territories. Obviously, in view of future uncertainties, private enterprise is not going to spend heavily upon re-establishment unless it is encouraged to do so.

The extraordinary action of the High Commissioner in thus penalising private enterprise, at a critical time, probably will be accepted as proof of the widely held belief that the British Colonial Office, under the influence of the new' Socialism, does not want private enterprise back in either the G & E Colony or the Solomons.

The big companies, after their experi ences at the hands of Wardist Socialism in New Guinea, may be expected to see only one policy in the High Commis sioner’s proclamations. The British authority evidently believes that the Administrations of the G. & E. Colony and Solomons can provide those Groups with Government-owned trading and transport facilities, pending the training of natives to take the places of the Europeans.

In protesting to the High Commissioner against this crippling tax, Messrs. Burns Philp & Co. Ltd., made this strong point: “The main object of the present high prices for copra paid by the British Government and other nations is that

they should assist in the rehabilitation of trading and plantation production.”

It is pointed out that copra is a valuable foodstuff, in great demand all over the world, and taxation should be designed to encourage its production.