£F2 Millions
pp. 111-112 · Read in the full issue
[?]W Best To Use
Abilisation Fund
Fiji Cane-Growers and £F2 Millions
ISCUSSION of the purpose and future of Fiji’s Sugar Stabilisa tion Fund, now £2,000,000 Fijian 4 million Australian), has caused sharp rift between the Covena nt and the cane-grower organ tions.
'or some time, the growers have n demanding that the Fund be □ersed to them; but the Covena nt has declined to take any ion which could have an adverse ict on the industry. ’he fund was established to hion the industry against a fall the price of sugar, and has been It up from a tax levied upon duction.
Tae Government has made a nber of proposals to cane-grow and to the Colonial Sugar Re ng Co. Ltd., and has held ex ratory discussions with them, ts main plan is that the fund reduced to £1,000,000, to be built k to its present total, in five rs, from contributions, at the
late of 25/- a ton on all raw sugar exported. (Both growers of cane and miners contribute to the 25/-. The final price paid to growers for any year’s cane takes into consideration the pioportional contribution they must make to the Stabilisation Fund. As it is estimated that 60% of the proceeds of Fiji sugar export income goes to the growers, and as a Little over 7 tons of cane go to one ton of sugar, the growers probably con tribute around 2/- per ton of cane produced, to the Stabilisation Fund.) With the £1,000,000 thus subtracted from the Stabilisation Fund, the Government proposes to establish a Sugar Industry Capital Development Fund for millers and growers, who will be eligible to receive outright payments for capital uses.
When the Stabilisation Fund again reaches £2,000,000, loans may be made to growers and millers for approved projects, such as housing, fencing, machinery, water supplies, etc.
Argumentative Nat Chalmers, president of the Fiji Kisan Sangh (a large organisation of Indian canegrowers in the north west of Viti Levu), wants the Gov ernment to introduce legislation to declare- that the Stabilisation Fund belongs absolutely to the sugar in
dustry, and that any distribution should be dealt with entirely by the industry.
He does not want any control to be exercised by Government appointed boards. He said that such controls could be futile, because the boards could be totally ignorant of the many difficult and important problems facing the industry.
After preliminary skirmishing, at a meeting with CSR and Govern ment representatives, the growers’ representatives went back to their organisations for further instruc tions.
It is hoped that the growers will
recognise that it is not feasible to distribute the money in the Stabil isation Fund without serious dis location of the industry.
THE fund is an insurance against possible bad times if Fiji has difficulty, under world-market conditions, in selling her sugar. A big fall in prices could have a dis astrous effect on the economy of the Colony, which is already suffering from a series of adverse trade balances.
Under the Government’s plan, cane-farmers will be able to borrow from the fund for necessary capital expenditure. The amount they now are paying into the fund is like taking out an insurance policy, and wise farmers may yet see this.
But persons of moderate views admit there is much to be said in favour of Mr. Chalmers’ suggestion that distribution be controlled by the industry itself, for there is now too much Government control.
Perhaps a better suggestion would have been that control should be in the hands of responsible growers and the CSR, with reasonable safe guards against attempts to use the money without regard for the pur pose for which the Fund was created —namely, Market Stabilisa tion.
t The names of seven Cook Island students selected for scholarships for higher education in New Zea land, were announced early No vember. The four boys are Goldy Goldie and Richard Hewitt, of Aitutaki; Allan Tuara, of Mangaia;
and Kato Tama, of Mitiaro. Thj girls are Joan Powell and Tang Fred, of Rarotonga; and Talon Henry of Aitutaki. They pledd themselves to return to the Cool Islands for at least two years 01 completion of their education.