Ng Planters’ Demand For Higher

Copra Price

Policy Questions Touch Price at Many Points

Representatives of New Guinea copra producers this month flew from Rabaul to Sydney to confer with Australian crushers and Government f representatives on conditions relating to supply of Territory copra to Australia.

Mr. Don Barrett, president of the Plan ters’ Association of New Guinea, was ac- I companied by Messrs. E. T. Fulton and H. T. Allan.

Some important discussions have al- I ready taken place and will be continued when the producers meet Parliamentary Under-Secretary Howse at Canberra on I October 17.

The producers’ case for a higher copra price was presented by Mr. Barrett in the form of a statement dealing, in a con structive and detailed way, with most problems affecting the planting industry.

I Mr. Barrett explained that any consider ation of the price of the Territory’s staple product necessarily involved many mat ters connected with policy—such as cost of production, export duties, cost and availability of native labour; transport conditions and future planting.

' The statement tabled by Mr. Barrett was accepted as a basis for discussion. He [ stated, inter alia:

Price Paid By Crushers.

“QINCE the war Australian crushers have at all times had first call on Ter ritory copra, and prices paid have been far below world market prices, particularly over the last 18 months.

“The decision to supply copra to Aus tralian markets, from the Territory, at the same price as that paid by United Kingdom Government under the Austra lia-UK copra agreement, was a decision reached by the Australian Government without any reference to copra producers.

“There exists no guarantee that, if world prices fall below that at present being paid under the agreement. Australian crushers would not seek a cheaper market.

“There is no agreement, and there never has been, between coora producers of the Territory and Australian consumers. The Australian crusher has enjoyed, and at present continues to enjoy, the benefit of a relatively low price for his raw material: yet the producer has no collat eral guarantee of continued demand or even of price at the present level.

“The natural corollaries of low-priced raw material follow. Australian manufac turers can produce at lower costs than foreign competitors, despite high labour costs. Whilst this may be beneficial to the secondary industries of Australia and to Australia’s export trade gener ally, it is seriously retarding the devel opment of tracts of New Guinea land which are vital to Australia —from a defence viewpoint, if from no other.

“It is obvious that Australian manufac turers are benefiting at the direct expense of Territory producers.

Demand For World Price.

“ITjROM a purely logical and ethical view -T point it is clear that copra producers are entitled to world prices or at least something approaching them —failing this, a long term agreement with a guarantee of price at a fair level.

“In this regard the agreement with the United Kingdom has the right ideas and sentiments. However, the substance of the agreement and the spirit of its carry ing out, leave much to be desired. It is

the considered opinion of producers that Australian Governments have let them down badly in this matter.

“Wool growers in Australia are reaping the benefit of phenomenal prices for this season’s clip. It may be argued that they are liable to heavy taxation. However, they have franchise and representation!

Copra producers have a direct exnort tax on their product and also a considerable burden in indirect taxation—facts which are, apparently, often overlooked.

“The statement that, since copra prices in the Territory today are much higher than those existing ore-war, then produ cers must be well off and rapidly becom ing wealthy, could only be made by a person who has not troubled to examine the facts. It might iust as well be argued that, because a suit todav costs much more than the same article did in 1939 the manufacturer must be accruing im mense profits.

“The facts are, of course, that produc tion costs have soared supplies are many times their pre-war price, while trans port, labour and management costs have risen. Add to this that many plantations have reached or oassed the peak of their productivity: indeed, many are on the wane. Do not forget the shortage of bmldiner materials for the construction of plantation houses, drving sheds and the like the difficulty of obtaining suitable and exnerienced plantation operatives: and the unsettled conditions amongst the natives—source of labour for all planta tions.

“In a great many cases, plantation build ings had to be completely renewed. War damae-e comoensation was paid on a liber al scale—but in most cases the cost of replacement was in advance of the pre war valuation.”

The Planters’ Assn, spokesman nointed out that war conditions had disorganised and demoralised the natives, source of the indisoensible plantation labour, Renditions were made far worse bv the Socialist policy of discouraging anv work inclination among the natives, attacking

and discrediting the old contract system, and disbursing “war damage compensa tion’’ among them on a most lavish scale.

Transportation facilities have been in a chaotic state for years. These conditions have added enormously to the cost of recruiting labour and of maintaining labour. The following figures give some indication:

THE Planters’ spokesmen pointed out that planters cannot make adequate provision for the new planting, which must go on if the now ageing plantations are to be effectively replaced. The pres ent position, from the viewpoint of New Guinea’s future development, is not good.

Their statement went on to deal with the enormous wastage of Australian public money on plans for native welfare—the general effect of which has been to make less and less native labour available for

the Territories’ development: the huge smns allegedly spent on public works, al though the condition of roads, bridges and wharves Is unsatisfactory.

The producers stated that it was their considered opinion that New Guinea could be self-supporting now as in pre-war years. An export levy of £3/10/- per ton is paid on copra and royalties are collected on gold and timber. The copra tax alone yields over £200,000 per annum. Customs revenue is estimated at £500,000. More over, New Guinea residents pay export levies on Australian goods sent to the

Territory.

Producers would willingly shoulder these burdens if paid a fair price for their produce and if the administration and development of New Guinea were put on a sound basis.

Mr. Barrett concluded by stating that producers were fully prepared to co operate with Australian consumers on reasonable terms. They desire a stable industry but demand a full voice in their own affairs.

Cost Of Essential Commodities In Ng

Pre-war 1946 To-day Rice, ton .. £9/10/- £43/-/- £68/12/6 Meat, case . £1/3/6 £3/10/6 £4/19/- Copra. sacks (bale) . £9/-/- £28/-/- £66/-/- Tobacco, lb. 4/9 8/11 14/8 Laplaps, yd. 3d 1/9 2/3 Petrol, gal. . 1/9 2/5V 2 4/4 Distillate, gal. 9d 2/2 3/2 y a

Australian

Export

Levies On Goods

For

NG Starch SR Flour . . ., Biscuits .. ..

Soap, Butter ..