Fiji's Sugar Industry

New Control System For Fiji's Sugar Industry

The sugar industry of Fiji, which provides the Colony with more than half its exports—i.e., over £7 millions in £l4 millions —meets the New Year (1962) with an almost completely new control system.

WITHIN the last few weeks of 1961, Fiji passed anew Sugar Industry Ordinance, based on the recommendations of the Trustram Eve Commission, which during early 1961 examined the Fiji sugar in dustry. . 4 Then the Governor appointed a Sugar Industry Board, with statutory and executive powers over the in dustry, and consisting of; Chairman: Air Chief Marshal Sir Arthur Sanders, GCB, KBE, who retired from the Royal Air Force in 1956. , , Deputy Chairman: Ratu Edward Cakobau, OBE, MC, ED, who has

been Commissioner Eastern during 1961.

Accountant: Mr. J. W. M. Tidex, DEC, AC A (Aust.), a member of the firm of Price Waterhouse and Cos.

Preparations now are afoot to set up a Sugar Advisory Council, which will consist of the three members of the Sugar Board, representatives of the millers (five), cane-growers (five), mill-workers (two) and of the Government (two); and to quickly supervise the signing of new contracts between the CSR Cos. and the growers.

Meanwhile, again following the

recommendations of the Trust!

Eve Commission, the CSR < registered in Fiji a wholly-owi subsidiary, South Pacific Sugar M: Ltd., with a nominal capital £15,000,000, which is to take o the whole of the assets and activi of the CSR Co. in Fiji. But this 1 not done until the Sugar Indui Ordinance was law.

The new company’s first direct are: Messrs. H. G. Nicholls (ch man), chief inspector of the division of the CSR Co., Ltd., Sydi J. C. Potts (deputy chairman), c manager of the company in Fiji M. Aitken, manager of the Laut mill; G. F. Adams, manager of Rarawai mill; and A. S. Her! manager of the Labasa mill.

"Trouble-Makers" Fight Bad

There was sharp fighting in Le over the Ordinance.

The Trustram Eve Report “rough” on some sections of the dustry—especially on certain asp of the CSR Co.’s Australis structure, and on the activities

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that Indian section responsible for the strike of cane-growers in 1960- 61.

One recommendation was that the CSR Co.’s Fiji enterprises be formed into a sparate company.

Another was that the cane-growers’ representatives on the Advisory Council be selected from a panel prepared by the Sirdars of the cane cutting gangs (who are elected by the growers) and that no practising barrister or solicitor, and no member or candidate for membership of the Legislative Council, could be a mem ber of the Advisory Council. This, of course, was directed at Indian lawyers and politicians, many of whom are notorious mischief-makers.

The CSR Cos., although obviously angry and indignant at some sections of the Report, decided to accept the recommendations, on condition that they were implemented in toto, so that a workable plan of industry control might be got into operation.

But the Indian trouble-makers de cided to fight against the recom mendations regarding Sirdars, and the exclusion of lawyers and poli ticians, as embodied in the Bill. They organised a series of what they called “farmers’ protest meetings”—which were not impressively attended; and, when these were ignored, they carried their opposition to the Council.

Tie Governor earned some icism by trying to placate the ible-makers. He indicated that if cane-farmers would accept one :wo alternatives (that all registered ners’ associations together should mit a panel of 10 names, or that h registered association —there are I to be 15—should submit three les) he would suggest a variation the Commission’s recommended ;hod (through the Sirdars) of cting the growers’ representatives the Council. t is believed that this angered the R. Cos., which had made its ac tance of the Commission’s plan tingent on the whole plan being bodied in the Bill, lowever, there was no need for :ry. The 12,500 Indian growers v are so disunited, and so sus ious of the trouble-makers re nsible for the recent strike, that y can agree on nothing.

Tie Indian members, in Legco, ved amendment after amendment, ng to have various provisions re ved from the Bill—but all were eated, mostly by 26 to 4 (Indian mbers against the rest of the ancil) and the Ordinance was ap ived, in the form originally drafted, tfr. C. W. Cayzer (European ninated member) remarked: “It been suggested that our Indian :nds have had a change of heart, 1 will try now to assist the in itry. This has been a clear demon ition that there has been no change heart, and I feel certain that there people who foresee that there will trouble again.”

Mext developments will be seen er the new Sugar Industry Board es over in January.

Because of the urgency of certain lustry matters —the signing of the v cane purchase contract between ; company and the growers, for imple—the chairman of the Sugar ard Sir Arthur Sanders arranged proceed immediately to Fiji, and s due there on January 3. He mned to remain a few weeks, to ; organisational activities started — and then to return briefly to England, settle personal affairs before tak ; up permanent Fiji residence.

Grave Threat to World Market Rates The outlook for the sugar industry very uncertain—due partly to )mmunist-dominated Cuba having n amok, and partly to the increas l world production of beet sugar, lich is less costly than cane sugar.

A conference in Geneva of sugar oducing countries which were trying renew the International Sugar

Agreement (which limits individual national production by a quota system) broke down on December 14 —mostly as the result of unreason able demands by Cuba. Cuba in 1961 marketed more than 1,000,000 tons beyond her quota, and threw the world sugar-control situation into confusion.

During the remainder of December, efforts still were being made to re establish control; but the likelihood at the month’s end was that the world’s sugar market henceforth would be “an open go”, with a serious fall in prices.

The break-down of the Inter national Agreement does not affect the British Commonwealth sugar control system, which has just been extended for several years. This means a stabilised market for a large proportion of Fiji’s sugar; but the balance must be sold in the world’s open market, which could mean disastrously low prices.