Copra Price Becoming Live Issue

In New Guinea

From Our Own Correspondent

Rabaul, July 6.

THE coconut planters of Papua and New Guinea are showing growing irritation over the failure of the Australian Government to take any action on their two maim grievances.

Those grievances are: I.—Since the re-establishment of civil government, the Government has compulsorily acquired all copra pro duced in the Territories, and has fixed its own price to the planters. For years, the Government has deducted from payments due to planters a sum, rang ing from £3 to £6 per ton, wherewith to form a Stabilisation Fund. “Stabili sation” became unnecessary after the end of 1948, when the British Govern ment undertook to buy, for nine years, all the copra Australia’s territories could produce, at a guaranteed price.

But deductions still continue, and the Fund is now over £700,000. Planters say the deductions should cease, and the Fund be distributed among the planters who created it. 2.—Planters insist that the £4B/10/- Sterling now being paid by Britain under the Ministry of Food guarantee is grossly under world market value.

It was under market value in 1949; but the position became much worse when Britain de-valued her £, by about 30 per cent., in relation to gold and the US dollar. The copra for which Britain is paying £4B/10/- per ton in her now de-valued Sterling, is now worth around £BO, in the same cur rency.

THESE and other matters were dealt with in a statement made in Rabaul early in July by Mr. B. Barrett, President of the Planters’ Association of New Guinea.

“The reply of the Australian Govern ment on the stabilisation of the copra industry was most unsatisfactory,” said Mr. Barrett.

“The so-called Stabilisation Fund—in the establishment of which Territory planters were not consulted, and have at no time had a voice—now stands at over £700,000.

“As has been pointed out to the Minis ter, repayment of these monies to planters —who are rightly entitled to them—would assist in the development of the country.

“The Minister has spoken of possible settlement schemes in the Territory. It is the considered opinion of the Associ ation that such schemes are doomed to failure, unless the industry is freed from the burden of unwarranted controls.

“Planters have suffered setbacks and met with little but Government red-tape for four years. In the face of this op position, and with difficulties of supply and transport, copra production has risen steadily, thanks to the pioneering efforts of a handful of men. It is only fittine- that these men, or their families, should reap the full reward of their ef forts in the way of repayment of Stabi lisation Fund money deducted to date.

“At present, we go on contributing to this inequitable and illegal fund at the rate of £5 for each ton of copra delivered to the PCB. Who, we ask, it to benefit from this? Perhaps Canberra can tell us.”

Planters Sacrificed To Australian Millers and British Purchasers "IN his recent policy speech, the L Minister said: ‘. . . The Australian crushers, while enjoying the full benefit of the favourable prices which are

at present operating under the Agree ment, are in no way bound by its other terms. Cqnsequently, they are under no obligation to continue purchas ing their requirements from the terri tory at the Agreement price, should any general fall in prices enable them to ob tain their copra requirements from other and cheaper sources of supply.’

“The agreement he refers to is the Copra Agreement with Britain. It is obvious that the Australian crushers, and Britain, are the only ones ‘enjoying the benefit’ from the Agreement. With re cent quotes in the world markets of £BB/10/- sterling per ton, and allowing for difference in freight to these markets, as against freight to Australia, the Aus tralian crusher is at present being sub sidised by New Guinea planters to the extent of no less than £3B/14/6 Aus tralian per ton.

“These figures have been brought to the notice of the Australian Government but to date no satisfactory reply has been received by the Planters’ Association.

Storage and Shipping Problems ’

“fTIHE copra storage position at Rabaul, X which was acute last month, has been temporarily alleviated by the arrival of the Teviot Bank, closely fol lowing the loading of the Ivy Bank and Tungsha.

“The necessity for more storage has been brought to the notice of the Mini ster for External Territories, who stated that tenders are being called for the construction of additional stores at Rabaul. This work is not yet commenced.

The Minister also stated that the Aus tralian Government was endeavouring to arrange regular calls by overseas vessels to pick up copra destined for the British Ministry of Food. This is essential if the congestion and hold-ups of May, 1950, are not to be repeated.

“Mr. D. Mackay, of the Australian Ship ping Board, recently visited most of the New Ireland ports and saw at first hand the difficulties experienced by planters.

“He stated that if the Directorate of Shipping continued to operate in Papua- New Guinea waters, increases in freight and fares were inevitable, as, at present, the ships were running at a loss and fares were below those which would be charged by private operators. He was informed that the planters were prepared to meet increased freights and fares only if there were increased efficiency in the shipping services and regular sailings.

“In the opinion of the Association, it is essential that the Directorate continue in operation until private operators are running to regular schedules.

“The Bougainville sub-branch of the Association indicates that members there are in favour of the Directorate continu ing indefinitely, but they stress the ne cessity of regular services.

“The recent review of the Customs tariff will mean some reduction in liv ing costs, and a small reduction in the cost of production, as meat is now duty free.

“However, an urgent revision of copra prices is still our first essential and the Australian Government is strangely silent on this point.”

New Committee To Deal With

Situation

THE whole matter of the future con trol of the copra industry in New Guinea—the administration of the Stabilisation Fund, the authority and

scope of the Production Control Board, and the price that should be paid by tire Australian crushers—is now under con sideration, and an announcement will be made at an early date,” the Minister for External Territories (Mr. Spender) in formed the PIM on July 12. “It is pro posed to set up a body—probably a Committee —on which planters will have representation.

“I am aware of what has been said about the price paid under the British Ministry of Food guarantee—namely, that Britain is buying our copra at a price much below world values. But we cannot find that Britain is getting any monetary benefit by re-selling our copra—there is no evidence of that, at all.

“Ceylon is not now selling her copra to Britain; but there is no evidence at all of the Ceylon planters getting high prices from the world market. Ceylon appears to be using all her own copra in her own mills.” ,