Business and Development

Sad days for the Fiji copra industry

Fiji’s ailing copra industry—re puted to be almost on its last legs— will receive some relief when the Fiji Government introduces its proposed freight subsidies.

TTie subsidies, for which final draft recommendations were being studied in January, will apply to cargo being carried to and from outlying areas of Fiji.

Although the government has deliberately not tied the subsidy to copra, it expects copra producers to be the main beneficiaries.

They certainly need it.

The situation has grown desperate for small growers in the outer islands.

In the Lau Group, people were still cutting copra in January—they had little alternative—but they were receiving only $B4 a ton.

The freight from central Lau was $l7 a ton, reducing the producer’s return even further.

Meanwhile, some of the biggest and longest-established producers in Fiji had either put their plantations up for sale or were thinking about doing so. People like Taveuni planter Mr.

Val Tarte, a third-generation copra man, says that unless copra-processing factories are established in the islands, the industry—Fiji’s second most im portant agricultural industry—will die.

Others predict that planters as a breed will become as extinct as the dodo and that the whole industry will revert to the peasant-farm sub sistence level.

In a series of features investigating the copra crisis, The Fiji Times drew a grim picture of planters selling out, others laying off workmen—and observed that although export earnings from copra are only one-sixth of the earnings from sugar, copra produc tion has almost the same number of people dependent upon it.

Copra however, does not have the protection of international agreements about price and production quotas.

Where in recent years producers have been able to ride out the

difficult times in reasonable comfort, they’ve never had to contend with the additional crippling problem of inflation.

Low returns and the highest-ever production costs are creating hard ships from which some producers— specially those too small to diversify say they will never recover.

Among those also talking of selling out is Mr. Reg Douglas, who like Mr. Tarte, is a member of a pioneer mg planting family. By mid-Dec ember, almost all of Taveuni’s other plantations had virtually closed down.

One exception was Nagasau Estate, owned by 44-year-old Scotsman Mr.

Ronald Paton. Mr. Paton says he will probably emerge from the crisis in a reasonably healthy position—but stresses that the only reason for his success is the existence on Nagasau of a hydro-electric power station, This, he explains, has got his copra drying costs down to $45 a ton.

Copra supplies reaching Suva were so small in December that one of the millers, Cope Allman, closed before Christmas and did not reopen tiH the second week in January,

Island Industries, the bigger crusher, closed its Suva mill from December 23 to January 10 to allow copra SUp plies to build Up.

The Fiji COpra production for 1971 was 28,259 tons. In 1970 it was 500 tons more. The drop in total produc tion * s small, less than 2 per cent, the total co P ra cheque for 1971 be muc h more than 2 per cent, down on the 1970 return. The actual drop mone y w iH n °t be known till official statistics are released,

Sam On Govf

• *D A I *

In Pal F'qkgovci'

There were reports of a serious flare-up within Polynesian Airlines, mainly, it is believed, to do with what type of plane the company should buy. When this became hot enough, the various groups attempted to manoeuvre for power.

In this atmosphere, it was easy for the government to step into the breach and announce it would take control of PAL.

Perhaps, because Polynesian has already been designated as the national flag carrier of Western Samoa, any conflicts of a serious nature in the company would naturally be viewed with alarm by the government whose interests lie in guaranteeing secure communica tions with the outside world and in

A Niue islander prepares copra for the dryer. In common with other Island terri tories, Niue's copra industry is experienc ing hard times and without the incentive of high prices production is dropping.

Photo: A. G. Shearer.

giving Polynesian an attractive image to that world.

This, and the fact that more and more, costs of maintaining and developing Polynesian were getting too much for the shareholders’ pockets have prompted the government move, and provided an excuse for inter vening in business.

As a result, the government will buy 100,000 shares of $2 each in the recapitalisation of Polynesian.

It already holds 10,000 shares.

Together with any other shares the government may buy from private shareholders, its total shareholding in Polynesian will be at least 51 per cent.

PAL could do little to oppose the government’s action for it absolutely depended on the government for support in the purchase of one new Hawker Siddeley 748 turbo-prop air craft. The government’s part was to guarantee the purchase of the air craft, and this had already been done when, in November 10, the Head of State signed the guarantee.

Polynesian’s chief engineer left recently for the United Kingdom to help in bringing the aircraft scheduled to arrive on January 20. It is ex pected to be operational by February Defending government involve ment, Minister of Civil Aviation, Tupuola Efi, said; “In a state as small and isolated as ours with an increasing requirement for travel to our island neighbours and other countries and with an increasing flow of visitors from abroad, it is essential that government should have some control over and play a significant role in the instrument of airline responsibility for providing this communication.”

Barnes' last decision

strikes no oil

Mr. Charles Barnes went out on a limb as far as Papua New Guinea was concerned in one of his last acts as Australian Minister for Ex ternal Territories. His decision to ban further off-shore gas and oil explora tion in the Gulf of Papua for the present met a hostile reception.

It put the PNG Ministerial Mem ber of Mines, Mr. Roy Ashton, in a huff. He said he would unilaterally give oil companies permission to continue drilling unless the Austra lian Government reviewed its decision immediately. The United Party sent a telegram to Mr. Barnes seeking reconsideration of the decision. Mr.

Gala Oala-Rarua, Assistant Ministerial Member for the Treasury, took a similar stand, and finally the Admin istrator’s Executive Council asked that drilling of the two Phillips’ wells in the Gulf of Papua should “proceed immediately”.

Phillips had applied to restart drilling programmes at Uramu, near Deception Bay, and at Pasca.

Mr. Barnes said the Barrier Reef Royal Commission headed by Sir Gordon Wallace, had information on exploration in the Gulf of Papua. The decision to postpone drilling would allow the commission to consider the matter. The government decision was consistent with an official statement early in 1970, which said the govern

merit did not wish drilling to take place on or near the reef pending the commission’s report.

Mr. Ashton said he regarded the decision as “politically unwise”.

Mr. Oala-Rama, who said Mr.

Barnes had replied that the decision would stand, added that drilling was of “vital importance” to Papua, which was given a raw deal.

Mr. Oala-Rarua and Mr. Toua Kapena, Ministerial Member for Labour, launched a campaign to seek UN intervention.

The Administrator’s Executive Council, passed a resolution saying it was deeply concerned at the Aus tralian Government decision.

The AEC in an urgent message to Canberra, said it again wished to bring to the attention of the Austra lian Government its opinion that there was little risk of the reef being polluted by activity in the Gulf of Papua because of the considerable distance between the Great Barrier Reef and the proposed drilling sites.

There should be no obstacle to developing a possibly rich natural resource, particularly as it was in a relatively impoverished and little developed area.

The AEC also decided to set up a committee to examine mining policy and legislation. The committee, to be known as the Mining Policy and Legislative Committee, will prepare its proposals for consideration in 1973. The legislation will cover the exploration and exploitation of PNG’s mineral resources.

Santo airfield

almost completed

Pekoa airfield at Santo in the New Hebrides may be officially opened to traffic in February or March.

The terminal building, which includes a passenger transit lounge fitted with a bar and a pilot’s room, was completed at the end of Dec ember. The 6,500 ft runway is almost finished and drains are being dug round the perimeter. Other facilities include a technical block with a control tower and weather observa tion centre, a radio centre and a fire station.

Good start for

Air Melanesia

Air Melanesia had a successful first year of operation as a joint Qantas- New Hebrides Airways Ltd. venture.

There was a marked increase in traffic between Vila and Santo after UTA withdrew from that sector. Now the

airline plans for a 20 per cent, in crease in traffic in the current financial year.

New schedules came into operation on January 1. These will be changed in April to fit in with Air Pacific when the latter introduces its pure jet BAC-111. Plans are being made for Air Melanesia to handle cargo, re fuelling, loading and unloading and documents for both Air Pacific and

Uta.

The Air Melanesia board has agreed that an extra commuter bus should be introduced to run between Vila and the airport because of the build-up in the passenger traffic.

Mr. C. D. Ritchie, of Qantas, is chairman of Air Melanesia. He was formerly manager of Fiji Airways and is a twin brother of Captain R.

J. Ritchie, general manager of Qantas.

Brittens are

now flying high

Britten-Norman (Bembridge) Ltd., which took over the ailing Britten- Norman Ltd. late in 1971, has made a good start. It has sold its first Trislander aircraft—one to Gabon and another to Kenya.

The new company’s first delivery for 1972 was a 260 hp Islander to the Royal Hong Kong Auxiliary Air Force. This was quickly followed by a second delivery to the Far East.

The number of Islander deliveries is now 326, of which 32 are operating in the Pacific Islands.

Efforts to avoid

copper cut bock

Rio Tinto Zinc, major shareholder in Bougainville Copper Company, will suffer a loss of earnings of nearly SA7 million should current requests by Japan’s six major copper smelters for up to a 30 per cent, cutback in Bougainville copper shipments be ap proved.

The smelters in early January asked RTZ’s Australian affiliate, CRA, to reduce shipments between 20 and 30 per cent, this year.

With the mine due to produce in April, the smelters had originally agreed to take 95,000 tons annually a considerable proportion of Japan’s annual forecast of 710,000 tons total output of copper.

The smelters have asked for the cutback because of an 18-month recession in Japan and a drop in world trade.

Bougainville Copper’s chairman.

Frank Espie, visited Japan in December, but failed to solve the cutback problem.

RTZ’s chairman, Sir Val Duncan.

was due in Japan in January to try again.

One solution could be a Japanese Government stockpile of raw materials for all material excess to current needs until the recession ends, hopefully in 1973. Sir Val will sup port this idea.

Backing the field

Bougainville Mining Ltd., major shareholder in the Bougainville copper project, is making sure it backs the right horse for the PNG election stakes.

The company plans to contribute $3,000 for election funds to each of the territory’s three major political parties.

Fiji target for

NZ sales drive

Fiji and nearby markets will be the target of a sales drive being arranged by the NZ Manufacturers’

Federation in association with the NZ Department of Industries and Com merce. Early in July there will be a display of NZ export goods in the Suva Town Hall. Sporting and cul tural activities and other aspects of the NZ way of life will be arranged to coincide with the display.

Goods on display are expected to include foodstuffs, building materials, electrical appliances, hardware, fur niture, floor coverings, glassware, textiles and toiletries, NZ businessmen who take part in the Suva fair will probably visit other island groups such as Samoa and Tonga when the fair ends.

Wanted rich

developer for PNG

The successful tenderer for land for a new hotel at Port Moresby will have to meet a number of stringent conditions—and he will need a lot of money. The site is in the Mary Street area and overlooks Ela Beach.

Any project should cost millions of dollars. Offered is a 99-year lease of the land for a hotel and ancillary purposes, but alternative plans for restaurant and commercial premises or shops designed to cater for hotel clientele will almost certainly be ap proved.

The minimum tender price is $lOO,OOO above the upset price set for the lease. The rent will be $14,000 a year for the first 10 years. It will be reassessed at the rate of 5 per cent, a year on the unimproved value of the land every 10 years.

The lessee will have to submit full detailed plans of all development proposed within six months of the grant of the lease for approval by the Director of Lands.

An expected condition of the lease will be that improvements must be worth a minimum of $2 million within three years. Development of open areas will have to be in ac cordance with a landscaping scheme approved by the Lands Director.

The lessee will also be required to widen Mary Street, grade and con struct the roadway connecting Douglas and Mary Streets, and provide foot paths, gutters, etc.

Tenders close on April 12.