“Reckless," Says Govt.

The Government Offers Some Figures

Nausori Mill Scheme “Reckless," Says Govt.

Fiji’s Financial Secretary, Mr. Eric Bevington, who is a plain speaker at any time and disinclined to indulge in the rhetoric, in January had a few words to say about the proposal to establish a new sugar mill at Nausori, using terms which might mean the end of the scheme once and for all.

HE said the scheme of the Fiji Sugar Milling Co. Ltd was “utterly reckless” and that according to Government figures the mill could run only at a substantial loss.

Mr. Bevington was speaking in the Legislative Council in January dur ing a long debate on the Rewa situation.

He estimated the annual cost would be £202,000, yet all the mill would earn would be in the region of £137,250. The mill would cost £650,000, he predicted, of which £550,000 would have to be borrowed.

A working capital of at least £150,000 would be needed, to take the initial cost of £700,000. [ The company has in hand (at the time of going to press) £25,000, and another call-up of £25,000 was due in January. The promoters have tried in several places to raise the money, with no success.']

No Quota Available

Mr. Bevington made it clear that the new sugar company did not have a quota and that the Fiji quota did not belong to the Government.

The Rewa quota belonged to the CSR and would go where the CSR wished. The Colonial Office in Lon don had told the Fiji Sugar Milling Company of this position, he added.

Thus the mill, if it ever starts, have . to accept a world price of £F.26 against the Commonwealth Sugar Agreement price, which guarantees £F49 up to 170,000 tons.

Nevertheless, out of the entire debate came the feeling that had the Financial Secretary six months ago clearly stated all the grounds to the new Nausori mill, some of thebitter n.ss of the Rewa Valley farmers might have been avoided. y

No Proof

Government spokesmen had said nnt hS y that a .. new mill could not J? a /,’ but no satisfactory proof or real argument had been given to convince the farmers that anothe? company other than the CSR could not operate successfully in the Rewa if given encouragement, and a quoTa

There has been an impression among farmers that possibly the Government was being influenced by the CSR, and that it was merely trying to bulldoze farmers who had always grown cane into transferring their energies to more economically desirable crops.

Not Entirely at Fault The truth, of course, is that the Government was trying to dis courage peasant farmers from in vesting in a company which the Government was firmly convinced could not pay, but it is not entirely the farmers’ fault if they saw some hope in the new mill, even if, for security’s sake they should have taken an interest in other crops well before now.

The figures produced on the new mill operation are certain to have weight and presumably they will force the promoters of the new company to produce counter-figures —which the Government says has never been done.

No statement had been made by the promoters by early February.