House of Assembly: Vol9 - THURSDAY 12 MAY 1927
First Order read: House to resume in Committee of Supply.
House in Committee:
[Progress reported yesterday on Vote 25.]
Seeing the Minister of Agriculture is also here I would like to draw the attention of the Minister of Mines and Industries to a certain matter. I would like him to try and get the assistance of the trade commissioner in regard to the embargo on South African fruit entering the United States. That embargo has been there for some years, and it is not an easy matter to remove it. They placed it on as they were afraid of the fruit-fly. I would like the Minister to try and get the embargo removed on certain fruits which are not subject to the fruit-fly. We have certain fruits which are not so subject. In particular, there are our grapes, pines, plums, apples and melons. We had a fair export of melons to the United States. You never get fruit-fly in melons. Then there are grapes; you do not get the fruit-fly in grapes or in pears or plums and apples. We are importing to a considerable value yearly from the United States, and we certainly have the right to try and re-open this question and try and get the embargo raised in respect of those fruits which are not subject to fruit-fly.
When the House adjourned last night I was asking the Minister if he could give us any information with regard to these trade commissioners. I was asking particularly why he still maintained that Milan is still the best place for our European trade commissioner. I would like to point out to the House that if the trade commissioner was stationed either in Hamburg or Rotterdam he would be in the centre of our biggest European trade. Our exports to the continent of Europe are mostly to France, Belgium, Holland and Germany—in regard to which Rotterdam or Hamburg is the easiest town to work those countries—and our exports to those countries amounted to something between £8,500,000 and £9,000,000 sterling in 1926, whereas our exports to Italy do not amount to £1,000,000. They amounted to £872,000. It seems to me very much more important that our representative on the Continent should be looking after our trade of £8,500,000 to £9,000,000, rather than looking after the £872,000 in Italy. As a matter of fact our trade to the principal countries adjacent to Rotterdam is ten times as much as the little trade he is looking after in Italy. I think the House ought to have some very good reason given by the Minister to establish the necessity of keeping our man down in one corner of Europe, when nine-tenths of our trade is on the northern side. I should also like to discuss and to get some information regarding our trade commissioner in the United States. The hon. member for Worcester (Mr. Heatlie) has brought up the matter of fruit export. I am afraid I am not as optimistic as the hon. member as regards our fruit export to the United’ States. I am fairly confident that if they do not find fruit-fly in our melons they will find something else. They are not going to have our melons in the United States. That’s that. You are wasting your money trying to climb over the tariff wall. You have little prospect of doing any big business with America. Before we had a trade commissioner in America—take 1922-’23—we exported roughly £2,000,000, actually £1,897,000. After the trade commissioner had been established there for roughly two years we are doing just about the same turnover of under two millions. What concrete results have we got from having our man stationed at New York? I notice on the Estimates that two years ago the expenses of the New York office amounted to £4,000, and now they amount to £6,630, that is they have gone up over 50 per cent., and we have not got any better results. Our trade with the United Kingdom last year amounted to 46 millions. This is the “decadent country” which my hon. friend the member for Winburg (Dr. van der Merwe) mentioned the other day; as against the other great country, the United States, which took under two millions.
How much does the United Kingdom pass on?
If the hon. Minister had been a business man he would know it does not matter what your customer does with your goods so long as he takes them. If the United States likes to take more of our goods and pass them on, let them do so; but the trouble is they do not take more. Our trade commissioner in England costs £5,974.
What about the cost of living?
I am not talking about the cost of living, but the cost of getting your business.
You do not expect to get all the business you want in two years, do you?
I expect to get some results and to see our business with the United States increasing.
So it is.
As far as the figures are concerned we are not doing more than in 1922-’23; therefore it is due to the committee that the Minister should give us some statement showing that there is some advantage in haying a trade commissioner in New York. It is a question in my mind whether he would not be doing more good to our export trade if you transferred him to Montreal. You have a better chance of doing business with Canada than with the United States. Take our wine farmers; in regard to their product you have no chance of doing legitimate trade with the United States, but there is a big business to be done with wines in Canada. Unless he joins the rum fleet off Barbadoes he is not likely to do any business with one of our principal industries in the United States. In Montreal there is a business to be done in fruit, wines and base metals; and Canada has much more sympathy with the Union than the United States has. And if there is any business to be done with the United States it is a bagatelle to do the train journey from Montreal to the United States.
When I stopped yesterday I was saying that the Minister could not of his own knowledge have known whether there were diamonds in Namaqualand or not, and whether he should prohibit prospecting or not. It had to be brought to his notice by someone outside of Namaqualand or by people there who had prospected and found diamonds, or by the magistrate of Namaqualand. I assume that the most likely person to bring it to his notice was the magistrate of Namaqualand. Then I must also take it that the magistrate from time to time when diamonds where registered brought it to the notice of the Minister and I think that long before that time finds of diamonds in payable quantities had been reported. Why then was the proclamation not issued sooner or was it not delayed longer. It seems strange to me that the discovery of diamonds was given so great publicity. When I find diamonds I do not publish it to the whole world because it would be injurious to me to point out that the rich fields were there. But here comes a syndicate and, with the largest capital letters at the disposal of the “Cape Times,” it is published how rich the fields are was that possibly done to frighten the Minister into issuing the proclamation’? Was he Compelled to do so? Dr. Wagner says in the “Cape Argus” of the 4th May that the extraordinary position arose that prospecting was done for the first time in an area which could produce diamonds more profitably than the mines. Dr. Wagner was originally in the Government service, but his value must have been so great to the mining magnates that they offered him such a large salary that he was drawn away. I can understand anyone being seduced in that way so that the mines have him at their disposal. But what great damage can be done by such a person to Namaqualand? If the Minister has received information about the danger of over production then I ask him why he has not also curtailed the industry at Lichtenburg. Dr. Wagner says in connection with Lichtenburg that the fields are one of the most dangerous threats to the diamond market, just as formerly the fields in the South-West were. He says that the largest part of the stones are of inferior value. The danger is therefore at Lichtenburg and the South-West and not at Namaqualand. If the Minister did not have that reason for his proclamation then he must have had another. Let me here say that Dr. Wagner says that the stones in Namaqualand are of such a quality that even if no market can be found for the rest the Namaqualand diamonds will soon be bought by people who buy diamonds. But then there must be another reason, and I think the Minister will tell me that the other reason is that so many prospecting pegs have been put in that he had become afraid that everyone who has a prospecting area would be wanting to have discoverer’s rights for the prospecting area. It seems to me that the people who made the Act of 1899, almost had a presentiment of what would occur in Namaqualand. In those days it was practically regarded as a desert, but those people must have felt that in such a large area of 7.000 morgen people would be found who would want discoverer’s rights and have enough ambition to go and search for precious stones there. The prospecting areas are all in circles there with a diameter of 500 yards, and there are 1,645 prospecting areas in those parts. If the discoverers get their discoverers’ claims—let them be twenty as under the old Act—then the labourer will be worth his hire, because he will get twenty claims for his spirit of adventure. If the Minister says that he wants 10 per cent. of it, Namaqualanders are willing to give it up. Then there will still be 1,625 left for the public on each area. The Government will get its benefit from each of the areas because it gets licence moneys for 1,625 claims which otherwise —if there was no prospecting done—would not be taken out. If, however, this is all prohibited, when will the poor people of Namaqualand be prepared to make further discoveries? They will not do so if they get no benefit from it. Is it right towards Namaqualand, the Cape Province and the State?
You are advocating a wrong thing.
The hon. member is also a Cape man. He is in business and if diamonds are found there he will also have an opportunity of doing business there. But he is not assisting me in influencing the Minister. It is because of people like the hon. member that there has been no opportunity in the past for South African boys. For that reason the Namaqualanders never got a chance. Because there are members like the hon. member for Fort Beaufort (Sir Thomas Smartt), because there are so many of such members, the countryside suffers so much. The hon. member takes up the attitude that if things are good here they come to South Africa, but if they are not they leave to-morrow for Australia. Somebody must prospect in Namaqualand otherwise discoveries will never be made. If the Minister says that he wants no further discovery of diamonds I can understand it, but then no further discoveries must be made in the Transvaal either. Why are we selected for disappointment? Why should Namaqualand be dealt with in such a step-motherly way? Why is the proclamation applied to Namaqualand and not to Hopetown, etc. The farmers in Namaqualand are in the position of a hungry cow running on bare veld and shut off by a wire from a lucerne field, and the cow is so lean that it is so weak as not to be able to get through. The Minister has put the fence there between the people and their future. Does he not think that the harm he is doing to the children whose future depends on it will one day react on himself. We have been treated in a step-motherly way long enough. Our people are getting refractory. They could expect nothing from the former Government. They were kept down all those years, but now this. Government has come into office. [Time limit.]
I Move—
This makes it uniform with the same word under the sub-head trade commissioner in Kenya.
I wish to draw the attention of the Minister to the question of the fishing industry. The Minister will remember, two sessions ago Parliament passed a resolution asking the Government to encourage the development of the fishing industry and the resolution contained certain suggestions in order to improve the conditions of the industry. The resolution included the establishment of certain harbours and shelters for boats on the coast of the Union. That motion was carried unanimously by Parliament and the Minister since then appointed a commission to travel on the coast line and inspect the different shipping harbours. That report has been laid before Parliament. It is a very important report and I questioned the Minister a few days ago on the subject but the Minister was not then prepared to make a statement, I only wish to refer to certain harbours on the Caledon coast. The commission very pointedly recognized that at Hermanus, Hawston and Gans Bay certain harbour facilities should be established and the commission recognized that the Government should inquire into how a survey has to be made, and I sincerely trust the Minister, who is personally acquainted with the coast and is also acquainted with a very important industry the fishing industry, will deal with this matter. I do not want to enter into the question of the importance of the industry but there is no doubt in the past all Governments have to a great extent neglected the fishing industry We have no conception what a great deal of good we can do to our country by developing the fertile fishing grounds surrounding the coast During the last few years we have learnt a great deal from the fishing survey and I wish here to express and I daresay it will be shared by the whole House, my sense of regret at the death of Dr. Gilchrist who did so much in giving technical advice regarding the great fish ing grounds in our waters. The development of this industry will find employment for a greater number of our population. On certain parts of the coast you find our European population sticking to this industry although they are hampered with great disadvantages, yet for years they have been clinging to this industry which is at times very precarious. We owe a debt of gratitude to these people for the way they have stuck to the industry. The State should show a little more practical assistance. With regard to my own coast line you find you have the fertile Agulhas bank, perhaps the most fertile fishing ground in the world, acknowledged to be so by scientists. You have the fishing boats at Gans Bay and Hermanus but they have no shelter and the industry therefore cannot develop. It is impossible for the people to row to the fertile banks in one day and come back again. Not only will the development of this industry lead to an increase of employment but there are many subsidiary industries which follow the great fishing industry. Our farmers are clamouring for phosphates. In other countries the offal of this industry is used largely for fertilizing purposes, but here we have nothing of that description with the exception of the whaling industry which does a a certain amount of work in that direction. I cannot enter into this question largely, in committee, but it is an important phase of the industry, and I assure him the development of the soil and the farming community are closely connected with the fishing industry. The farmers require fish, especially on the coastal belt, because fish is largely used as food for the labourers on the farms. The Minister has taken the correct course by appointing a commission as the result of the motion passed by the House two years ago. The Minister will establish for himself a name, even when his reputation as Minister of Mines has departed altogether, his reputation will live in the annals of the country if he puts this industry on a sound economic basis. I hear it rumoured that Mr. Warington Smyth is going to retire as Secretary of the department. In connection with the fishing industry I wish to pay a special tribute to Mr. Warington Smyth, who has taken a live interest in the industry and I hope his successor will follow the threads and the policy laid down by Mr. Smyth in advising the Minister to put the industry on a proper basis.
It seems a long cry from fishing to mining, but they both come under the control of the same Minister and must be discussed together. Throughout the country there will be regret that the Government has not introduced a comprehensive scheme for developing our gold mining areas. The prosperity of the country has been built up and depends upon the position of the mining industry and everyone will agree that it is suicidal not to make every possible effort to maintain the industry at its present level. Since last session Dr. Pirow has taken the place of Sir Robert Kotze as Government Mining Engineer, and I would ask the Minister whether there is going to be a consequent change of the Government’s policy in regard to State mining. About the last official thing that the late Government Mining Engineer, Sir Robert Kotze, did was to issue a report on the Far East Rand, and this turned out to be a very gloomy document, and if half what he prognosticates proves true we ar in for a very bad time indeed. Though that report is signed under date September 30, 1925, and the imprint shows that it was printed during 1925, members of this House did not get hold of it until June 7, 1926. It was very unfair to hon. members when last session we were discussing this matter that we had to depend upon a report several years old, while an up-to-date document should have been available. Sir Robert Kotze’s report does not make pleasant reading, but nevertheless, the facts cannot be gainsaid or disregarded by any government that is anxious, as I am sure this Government is, for the welfare of the country. In his report he states that of 49 mines which produced over 6,000 tons in 1924, at the time the report was written, two had already closed down, 19 had lives of less than five years, and 11 had lives of less than 10 years. In 15 years definitely half the industry will be closed down. Fifteen years is a very limited period in the lifetime of a nation, but on the basis of this report, within fifteen years our mining output, unless some new development takes place, is going to be decreased by no less than £20,000,000 per annum. The report also says quite truly that for some years no new mine has been opened and no virgin ground has been tapped. Sir Robert also reported that apart from Geduld No. 4, which has in the meantime been taken up, only one large and two small areas have a chance of being leased in the near future either to separate companies or adjoining mines. One would like to know what Sir Robert Kotze means by “the near future,” seeing that Geduld No. 4 which has just been taken up, had been advertised for nine years before it was taken up, and even then it was taken up practically on the tenderers’ own terms. Laymen must always be surprised when the State gold-mining areas are discussed by representatives of the big mining houses to find that there are such extraordinary risks in mining on these areas until the leases are signed, as soon as they are signed, untold wealth is predicted. The same representatives also criticize the Government because they say the Government’s terms for the leases are too onerous. I understand that Sir Robert Kotze has now joined one of these groups, and it is interesting to see what he had to say about the onerous nature of the agreement which the Government require. His report contains these remarks—
Then again the South African Mining Year Book gives the following testimony—
But, despite all this sympathetic attitude on the part of the Government, little has been done, and, in my view, and, I think, the view of many other people, an economic crisis is steadily coming upon us. I want to ask the Government what they are going to do in the matter. We all know that it takes years to develop mines and if a mine were started to-day before it will produce gold other mines will close down. It seems to me that it is becoming a question of a trial of patience as between the Government and the big houses. The big houses can afford to wait for the simple reason that delay suits them. If mines close down it means that there will be a lot of unemployment, and with unemployment prevalent wages will come down. A lot of unemployment means that working costs will come down and in the long run, if they like to wait, the companies will get the leases on their own terms. The Minister knows all this probably better than I do, and what I want to ask him is how long is the Government going to persist in its present policy, or is it going to do what it did in the case of the iron and steel industry, and take the matter into its own hands by going in for State mining?
I wish to support the claim by my hon. friend for Caledon (Mr. Krige). We all know, of course, that the fishery industry is a very important one and that some investigation is being made, but I want to put it to the Minister that that industry is not being pushed in this country as it should be. We have had very important surveys made. Surveys are useful to enable people to know where to find the fish, but the Minister, apparently, as other Ministers before him, has forgotten that once you have your grounds for fishing, you have to see that the industry is properly regulated and that the fish also are protected. In this regard I particularly want to refer to the whaling industry. A very important commission consisting of representatives of Norway, Sweden and England I think, issued a very important report some years ago. This commission made strong recommendations in regard to methods to be employed if we wished to prevent the whales becoming extinct. I would like to know from the Minister whether he has considered that report, and what the Government is going to do in regard to it. Then may I refer to the powers of the provincial council in reference to fisheries. The provincial council have powers now merely in regard to the preservation of the industry. They have no powers beyond the, and I think that the Fisheries Advisory Board appointed by the provincial authorities is a body which is far more alive than even the Government to-day in so far as this question is concerned. The Government have their survey ships, they find new grounds, and then they are perfectly satisfied, whereas the Advisory Board goes into matters very carefully, they see to the preservation of the industry, they see that the fish are not caught away unduly, and generally they have ambitions far beyond the powers given to them. In regard to crayfish alone, as a member of that Advisory Board I know that for years we have had under discussion the matter of a modicum of protection for the crayfish. Whenever we meet we have to consider a new regulation. The regulation which has been made does not suit this one, that one or the other, and even political powers are brought to bear to influence the executive of the provincial council to alter the regulations. If we had greater powers we would be able after careful consideration to fix regulations which would bind these people for good and all. We do not wish to find that our crayfish are caught away entirely in these waters, as happened to the lobster in America. I would ask the Minister whether the time has not arrived when he should consider giving the provincial council further powers in regard to this matter. If they had powers in consultation with the expert of the Government they could lay down rules and regulations in regard to the preservation of the fish, and in regard to extending the fishing grounds, and they will act so as to make this a really great industry, in this country. Take the stocking of inland waters, the provincial council can do nothing. The Government could give them power to go through the country and stock the rivers. If we had the rivers thoroughly well-stocked, we would find that it would be an inducement, as it is in other countries, to visitors to come out here. In Australia they have stocked their rivers, as we should do, with salmon ova. New Zealand spent 60 years in research and effort and to-day they are reaping the benefit. We are satisfied to do as little as possible and do not give powers to those who are prepared to act. Another point I wish to bring to the Minister’s notice is in reference to the research board. I have in years past suggested to the Minister of the Interior, and he has always referred me to the Minister of Mines and Industries, that he should get our research board to make a close study of the medical plants in this country. We have very valuable medicinal plants. Through the work of those interested in Kirstenbosch, we have established gardens not only here, but also at Whitehills, near Matjesfontein, and we are putting in every South African plant we can find. Unless we make an earnest start now we are going to lose many of our most valuable plants in this country. Many of the plants containing valuable medicinal properties and formerly used in the Native Territories, for example, I am told, have now been exterminated. Patent medicines are taking their place simply because no record is kept. Unless we start putting research officers on to work now, we shall find that the remaining few plants which are left will also be exterminated. I hope the Minister will give his attention to this, and see this large asset is developed. Then another point, the assize officers in the Minister’s department do work for the protection of the public. The public are complaining very bitterly in regard to the scales on the railway premises, and on enquiry I found that instead of this department appointing the assize officer to examine these scales, the Railway department appoint their own officers to do the work. None of these men work under the Mines department, but the fact remains that they are railway officials and are left to arbitrate between the public and the Railway department. He is really an employee of the Railway Department. Surely this position was never intended by the Act. It requires that this department alone should be responsible for the examination of scales. If you are going to leave it to the Railways to appoint a man nominally under this department you will never get the public to be satisfied with the examinations. It is a very large public concern and the public should have protection against the railways as against any other concern.
I should like to know whether the Minister can tell us anything about the commission of enquiry that was appointed in the matter of fisheries. In my constituency the commission visited Duivenhoksmond and said that there was sufficient entrance for boats. Still Bay, Fishery, and Mossel Bay were also visited, and at all four places the commission thought the places excellent for fishing. Excellent work can be done and the conveniences much improved, and I think the Minister should make haste and give us a grant out of the £10,000.
I would like to ask the Minister to use his very best endeavours to prevent the senseless slaughter of whales. There is no doubt that these mammals are fast becoming extinct. As the hon. member for Cape Town (Harbour) (Maj. G. B. van Zyl) pointed out, a commission has inquired into the matter. The Minister was told by the hon. member for Caledon (Mr. Krige) that he would achieve fame if he established the fisheries of this country on a sound basis. I would say that he would be placed among the immortals if he saved these whales from destruction. It is really a very sad spectacle. What has happened on land is now happening on sea. I hope the Minister will really consider this matter and see what he can possibly do in conjunction with other Powers to preserve these whales from destruction. I would like to have a few words with the Minister in regard to road construction. I put a question to him on the tenth of March last. On the 10th March, 1925, a motion was carried that the Government should confer with the provincial authorities with a view to the establishment of a system of national highways and roads for transportation. The Minister, in reply to my question, referred to the very useful and valuable report by the roads and bridges committee and which appeared in the Journal of Industries. He proceeded to say that the Financial Relations Act had not been in operation long enough to enable the provincial councils to deal with this large and difficult problem. One admits that the problem is large and difficult, but I venture to submit that something should be done. I also asked the Minister whether he had been in consultation with the different provincial authorities. He asked me to put it on paper. I did not put it on paper; I waited for this opportunity. I hope he will unreservedly tell us what steps have been taken. Has there been a consultation with the provincial authorities? No? It is very lamentable, it seems to me, to slight a solemn resolution by this House taken two years ago. The years fly by and nothing is done, and I would ask the Minister to take this matter up seriously. Let the department take it up and confer with the provincial authorities and let us have a settled programme of road construction. One admits there are difficulties in the way.
Yes, millions are in the way.
A great deal can be done not necessarily involving the expenditure of millions. One does not require everywhere that there should be concrete roads. If the Minister would read the literature issued by that public-spirited body, the Roads League of South Africa, he would get some very valuable information. I know a resolution was carried last year, but we are waiting in patience to know what the Government’s programme is. We do not expect the impossible, but we would like to see a scheme of some kind and an annual advance. A lapse of two years since the Financial Relations Act was passed is somewhat unreasonable.
I listened to the speech of the hon. member for Newlands (Mr. Stuttaford) with a good deal of interest. I take it he knows his subject when he is discussing trade relations with America. I regret to find that he is so pessimistic about it, although I must say I am rather inclined to agree with him. I have been following the trend of events in America very closely. I think perhaps we made a mistake when we sent a politician. I have nothing against Mr. Louw, but I take it the type of man to send to America is a commercial traveller, someone who knows something about business. It comes down to this: the Americans have made up their minds that they are not going to allow our fruit to go into America. The people you should give favours to are the people who buy your stuff. The Americans are not giving us any favours. I am rather hazy about the figures, but I understand we imported from America something like £10,000,000 and we export just under £2,000,000. So the balance is with America. I want to put it to the Minister that he should do what the Argentine does. When America talks to the Argentine the Argentine talks back to America. Why should we allow all these American motor cars to come in here as they do? Why should we give favoured nation treatment to America? Why not say “You say you find fly on our fruit; you say all sorts of things to keep our goods out. We are going to make it pretty difficult for you to bring your cars in.” That is what the Argentine did. Our trade commissioner, when he has finished junketing round with the Irish Minister, when he keeps off politics and thinks more about trade, might go to the Americans and tell them that unless we are treated properly South Africa might retaliate. I think we should do a good thing if we went further north into Canada. I am told by Canadians that there is room there for our dried fruits and our base metals. I believe Mr. Louw did his best and he went to Canada. He showed them some good stuff and we did not deliver the goods. This is his complaint. I am told by one of his staff that they are rather afraid to go to Canada now and talk about South African goods. I am not going into the question of what sort of goods. The Minister will know. I do hope if we appoint trades commissioners in future that we are not going to agree to my slogan of “Jobs for Pals.” The trade commissioner should be a hard-headed business man. If any business men in this House wanted to send anyone to Canada or Australia to look for business he would not select anyone on these benches. He would not choose a politician. As a rule they are pretty bad business men. I want to ask the Minister of Railways to give more money for advertising in America. You get fine publicity there. Mr. Oettle is the live wire of the show. He is a South African, and a jolly good fellow, too, one of the best we have ever produced. He is out to help this country. He has done more for the poultry industry than any Government. I would ask the Minister to take that man and send him to Canada as the trade commissioner. I may say that Mr. Oettle has not asked me to do this, of course; I hardly know him. Let us recall the politicians, and leave them here, and send the type of man such as Mr. Oettle is as trade commissioner. This (reference to politicians) applies as much to the South African party as to anyone else. Your people set the example. The first man sent was Mr. Chiappini. I am talking quite seriously; I am not criticizing the Government. Then I would like to say we want more tourists—not the tourists who come 400 or 500 at a time—they are here to-day and gone to-morrow, and the only thing they seem to be interested in is a few natives; but we want single tourists who will bring money to the country.
We are surprised to hear the speech of the hon. member for Newlands attacking the Government for having dared to appoint a trade commissioner in the United States. The memory of the hon. member and’ other hon. members who talk like that is very short. During the last election it was one of the planks of the South African party platform and the hon. member for Standerton (Gen. Smuts) laid it down in his election manifesto as one of the things that he would do if he remained in power. We said at the time that it was all talk and to-day that comes out very plainly because the supporters of the hon. member are making an attack on this Government for having appointed such a person. It seems very unfair of them seeing that they advocated the same thing at the elections. The hon. member for Newlands also said that we should increase our trade with Great Britain because she was our biggest client, but the hon. member forgets to tell the House that although Great Britain takes 61 per cent. of our exports, 45 per cent. of that is gold. Only the remaining small amount is commercial goods. The balance 39 per cent., which other countries take, is not gold, but all produce and that makes a great difference to our country. The largest export of ordinary produce, apart from minerals, goes to other countries and not to Great Britain.
What countries?
To France, Italy, Germany, Canada, Australia, etc. That is from the figures. If hon. members can convince me that the figures are wrong I will accept it but those are the figures that I have. The hon. member for Newlands further said that the trade with America had not increased since the appointment of the trade commissioner. I want to give the House the latest official figures. Our exports to the United States in 1924 (before the appointment of the trade commissioner) amounted to £1,215,191. In 1926 it was £1,963,212, an increase of about £750,000.
What about 1923?
That was a little higher than 1924. I am speaking of the figures immediately before the appointment of the trade commissioner. Take also the figures for Canada. In 1924 they were £9,651, and in 1926 £130,139. Our trade commissioner does not only operate in the United States, but passes just as much time in Canada. He is constantly travelling between the two countries, and the increase in our exports to Canada is the result of his work there. Hon. members argue that he can go and live in Canada, but even with his residence in New York he is doing good work in Canada, and, therefore, he can remain in New York in order to still further improve the trade in the United States. I also want to touch upon the status of our trade commissioner in the United States. I mentioned the matter last year and the Minister promised that it would be discussed at the Imperial Conference to see how the status of our trade commissioners could be improved and raised. Our trades commissioner in the United States is still in the position that he is not acknowledged by the United States Government, and he has to act through the British ambassador. My request last year was that he should be enabled to act directly, because it is not right that the United States should regard us as inferior. I should like to know from the Minister how far the matter progressed, and if there is a chance of his obtaining a higher status so that he can act directly. I understand that the United States Government is not prepared to acknowledge him as political representative if he lives in New York, because political representatives must live in Washington. If he, however, gets the title of Consul-General he can live in New York and be acknowledged. I do not know if that is correct, and I should be glad if the Minister will enlighten us.
I rise to sustain the plea put forward by the hon. member for Cape Town (Harbour) (Maj. G. B. van Zyl) in his effort to see our fisheries advanced and be perfected. It is very unfortunate that they are not getting more attention than they do. I would direct attention more particularly to the fresh water fish—to the trout—in the East Griqualand and Maclear districts, where farmers themselves have stocked the rivers. I have met people who have fished in Canada, New Zealand and all parts of the world, and, as far as I could gather, they are unanimous in saying that some of the streams of the Maclear district are the finest they have come across. But in Kokstad streams have been polluted by carp, and the result is, one of the finest fishing fields in the world has been spoilt and possibly ruined for ever. In the Maclear district carp has been introduced to two dams that I am aware of. Mr. Hay, who is employed by the Government to make a survey of the fresh water streams within the Union, was here some time ago. He was concerned that what had happened in Kokstad might overtake the Maclear streams. Unless these carp are destroyed very quickly there is a danger that fishing in the Maclear district will be ruined. It is a pity that one of the finest assets which any country can have should be spoilt in the way that is being done, and I hope the Minister will give this matter his close attention. I do not know whether such fisheries should not pertain to the Union Government, and not to the provincial government. Take, for instance, the Orange River, some of its tributaries drain the Orange Free State and others the Cape Province, you cannot have concerted action under such circumstances. Advisory boards would do a good deal towards maintaining interest in the matter.
When one listens to the arguments of hon. members opposite one is surprised at South Africa doing a penny’s worth of trade with any other country except great Britain and the other dominions, because it seems that the opposition wants systematically to fight any attempt to develop markets in other countries. I only wish to ask the Minister a question in connection with the extension of our trade with other countries. It is well known that two years ago we passed a law on customs duties which contained the principle of doing business with other countries on the quid pro quo basis. In consequence of great agitation by the Opposition against the trade with other countries, the Act was subsequently watered down a little, and Great Britain was allowed to again become the most favoured nation and a schedule was drawn up of articles in connection with which Great Britain would still receive a preference. Now I should like to ask the Minister how things stand with Part 1 of the second schedule in so far as the dominions are concerned. Is the Act in practice only applied to the United Kingdom or also to the dominions? I do not know if it is so, but I heard rumours that the trade with other countries is being hampered in practice by the schedule not only being applied to the United Kingdom but also to the dominions. I should be glad if the Minister will tell us what our relation is towards the other dominions. Then another matter of a local nature. As the Minister knows we appealed in vain a few days ago to the Minister of Justice for more police on the countryside. I want to see now whether the Minister of Mines cannot assist a little. In my constituency there are quite a number of diamond mines, and also a large cement factory where 600 or 700 natives are employed. The farmers find that sheep are constantly being stolen and they suspect the natives of it because there are so many of them. I want to ask the Minister whether in view of this he cannot apply a sort of compound system to the diamond fields and to the cement factory so that the natives may be put under better control. In any case it should be seen to that the farmers do not suffer as a result of the industry and the mining operations there.
I again wish to draw attention to our trade relations with Australia. It is anticipated that we are going to have a record mealie crop, but unfortunately Australia has increased the duty on South African maize from 2s. to 7s. per 100 lbs. When I brought the matter up first on the Treasury vote I suggested that the Minister of Defence might, during his visit to Australia, take the matter up with the Commonwealth Government. In view of the fact that for twenty years we have had a treaty with Australia I fail to see why we cannot enter once more into reciprocal trade relationships with Australia, which would be an advantage to our farmers and South Africa generally. At last I have an opportunity of agreeing with the hon. member for Bloemfontein (North) (Mr. Barlow) for I associate myself with his remarks in regard to the appointment of trade commissioners. Men of business experience should be appointed to these posts. Mr. Spilhaus had a profound knowledge of business and his appointment as trade commissioner on the continent was of great benefit to the country.
What did Natal say about his appointment?
I am not speaking for Natal, but as a representative of the Cape Province. The engagement of Mr. Spilhaus was one of the best appointments made by the then Government. That very shrewd and keen concern the Imperial Cold Storage Company seized the first opportunity of securing the services of Mr. Spilhaus when his appointment with the Union Government terminated. In future when appointments of this sort are made the Government should select a man of business experience irrespective of the cost. I notice that £500 are to be spent for exhibiting and advertising our produce in England and £1,000 for doing the same on the continent. Double or treble that amount should be spent in Great Britain, for that country buys the greatest portion of our produce. The success of a business depends largely on advertising, yet we have the paltry sum of £150 to be spent on making our goods known in Kenya Colony. I should also like to associate myself with the eloquent remarks made by the hon. member for Harbour (Maj. G. B. van Zyl) and Caledon (Mr. Krige) with regard to the fisheries. It may be said that in so doing I am pleading for the fishing stations around the coast of my constituency, but the benefit of extending these fisheries would by no means be confined to the people who actively participate therein. The farmers would also participate as they would be able to obtain cheap fish for their employees.
An attack has been made this afternoon on our trade commissioner in America, and it is very difficult to see what the object was. It cannot be justified from a merely economic point of view. I want to strongly object to the remarks of the hon. member for Bloemfontein (North) (Mr. Barlow). He said, if not directly, then by innuendo, that the mission of Mr. Eric Louw to America was a failure, because he is a politician, and is mixing in political society there. I regard this as an unfounded attack, and it appears to me to be malicious. Mr. Louw was an ornament to this House politically, but that was not the reason for his appointment. If anyone in this House can claim to be a business man, then Mr. Louw has the same right to do so, although possibly on a smaller scale. In addition, he is a lawyer and a highly cultured man. In my opinion, no better man could have been sent to America than Mr. Louw. That is not only my opinion, but it is confirmed by experience, and by the increase in the trade between South Africa and America as a result of his efforts. The hon. member for Ladybrand (Mr. Swart) has given a few figures, but I want to say that his figures for 1926 fall far short of the actual amount. The exports from South Africa to the United States in 1924 were valued at £1,215,000; in 1925 £1,320,000, and in 1926 £2,670,000. I want to quote from the best possible sources and give the figures in dollars. The exports from South Africa to the United States amounted in 1925 to 6,620,020 dollars, and in 1926 13,357,515 dollars, an increase, therefore, of 6,695,495 dollars, or 105 per cent. If we want to form an opinion about the work done by our trade commissioner, then we cannot take any other criterion but his report. During the first complete year that he passed in America there was an increase from which we could form an idea about the work we have done there. If in one year, directly through his mediation, an increase of 105 per cent. took place in our export trade with the United States, how can anyone give better proof, and how can more be demanded? For the hon. member for Bloemfontein (North) to say that the trade commissioner is a politician is not only unfounded, but malicious. There are other important figures which I can quote. During the same time the export trade from Australia to America considerably fell away. In 1925 it was 55,110,000 dollars, and in 1926 it was 45,738,000 dollars, a reduction of 9,371,000 dollars. On the other hand, I may add that the export trade of the United States to South Africa also increased, from 46,162,000 dollars in 1925, to 51,080,000 dollars in 1926. That is only an increase of about 5,000,000 dollars, while our export trade to America increased by nearly 7,000,000 dollars. In other words, the balance of trade has improved astonishingly in our favour, viz., by 1,777,232 dollars, or 4.5 per cent. As for Canada, the figures are much more satisfactory. The export trade from South Africa to Canada was worth 101,755 dollars in 1925, as against 1,001,236 dollars in 1926. That is an increase of 899,481 dollars, or of 883.8 per cent. over 1925. Can hon. members form any other conclusion than that our trade commissioner has done excellent work? On what grounds are such depreciatory insinuations made? There are also difficulties which appear from the report, and I want to bring them to the notice of the Minister. The first is the difficulty which has repeatedly been brought, by Mr. Louw, to the notice of the Board of Trade and Industries, of the Railway Administration and of his friends, viz., that he cannot get the South African producers to deliver the goods for which he asks; especially in the matter of the fruit trade, he has, by personal intervention, secured a considerable demand in Canada, and his disappointment, and that of the Canadian dealers, is that they cannot get the necessary supplies from South Africa. It is because the South African dealers do not want to trade direct with America. Everything must be done through London, and this very fact that everything goes through London makes an amazing deference in the figures. On account of our trade going through London, a tremendous amount of our South African produce goes to America without South Africa getting the credit, or our trade commissioner getting the credit as the intermediary for pushing the traffic. It is treated as imported from England. In connection with this important matter that there is no direct trade, I want to ask the Minister a question about a report which appeared a few months ago, viz., that it was possible that direct shipping communication might be arranged between the United States and South Africa. Is there any truth in the report, and has the department of the Minister any information about the possibility thereof? We must assume that the attack on our trade commissioner had a malicious political object, because Mr. Louw is above a personal attack. Therefore, I feel that we on this side should express our appreciation and acknowledgment of the work that Mr. Louw has done during the time he has had at his disposal.
I think it would be interesting, when the Minister replies to this question about trade with America, if he would give us some information as to what particular products are exported from this country to America. It is not our business to send a trade commissioner to encourage the export of American goods to this country, but it is our duty to encourage trade in America for our goods. I should not be surprised if a considerable portion of the £2,000,000 of exports from this country to America are minerals which find their way over there without any effort on the part of the trade commissioner. The companies who produce minerals are skilled in finding markets for their own products, and it does not require the intervention of the trade commissioner.
But they are not included.
I rather suspect a good proportion of the value is composed of minerals, and if so, there is no need for the trade commissioner to push the sale of these minerals, and if the value of the minerals was deducted, the balance of the exports to America would mean that the cost of maintaining the trade commissioner, £6,000 odd, would represent a considerable percentage of the exports from this country. I should like shortly to say a word on what has been said by the hon. member for Caledon (Mr. Krige) on the question of fisheries. We both asked the Minister a question some time ago as to what action he proposed to take on the report of the committee in regard to the fisheries in this part of the world. There were definite recommendations with regard to Kalk Bay, Simonstown and other places, and the Minister said the report had not been presented very long, and that he had not had time to consider it. Some time has now elapsed, and I hope he will be able to give us some idea. About 18 months ago a valuable report was sent in by a committee consisting of the late Dr. Caldecott, Sir Robert Kotze, and I forget the name of the third member, making suggestions for the encouragement and development of mining generally, and last year I remember asking the Minister what action he was proposing to take on the report, and whether it was proposed to give effect to the recommendations, not so much with a view to assisting the actual mines of the Witwatersrand, but with a view to helping milling in the country districts, and on that occasion the Minister said the same thing, that he had not had time to consider the matter, and, as far as I know, nothing has been done. The only thing I find in the estimates dealing with this matter is sub-head J, dealing with—
I do not know what has been done in the past, but, according to the Auditor-General’s report last year, there was a sum under this head of £850 spent on roads, included in which was an amount paid to the provincial administration in the Free State, which, as the Auditor-General remarks, seems rather strange. There was also an advance to another company, but, apart from that, there seems to be no reference of anything being done in the development of district mining. It seems to me the general policy of the Government, as regards tariffs and wages, is against the development of mining, because the general policy tends to put up the cost of production. I do not want to go into that question now. [Time limit.]
Previously I pointed out that, despite admittedly sympathetic treatment of the Government, very little has been done in the matter of developing the Far East Rand, and what little was done was entirely in favour of the companies. The lease to the Sub-Nigel Company caused one of the biggest booms of recent years on the market. From one of the mine official reports before the lease was granted, I read—
The Minister’s pen must be a magic wand, for no sooner had that lease been signed, than this area which was so “highly speculative” became phenomenally rich, and the shares which at the time the lease was granted were standing at about £1,000,000 value, are to-day worth at market price £7,500,000. Out of this £6,500,000 profit, these people who pleaded for “reasonable terms,” and which profit was obtained through the cession from the State, got the lot, and the Government got nothing. The company were asked to guarantee £350,000 for working expenses, which was referred to as a large amount of money, and it is interesting to know how it was raised; 450,000 ten-shilling shares were issued at 12s., and were at that time about 40s. on the market. Instead of the conditions being onerous, and the company having to put up a large cash requirement of £350,000, they made an actual profit of £630,000 on that deal. The parent company had already had a very nice “rake-off” as holders of a large number of shares, but, in addition, it got £11,300 for underwriting the shares. This is one of the instances where the reasonable terms of the Government were extremely unreasonable to the general public. There was another case, that of the Geduld East Company, where the company obtained a lease on terms which the Year Book described as distinctly promising. Again they were distinctly promising for the company, but there was little for the State. The company has a capital of £350,000 in £1 shares, 50,000 fully paid up, and 300,000 at issue at 2s. a share, the balance to be called up as required. In this particular instance, there were no vendor shares, and therefore the issue was attractive to the general public. As soon as the shares were put on the market, they went to a premium of 7s. To-day the shares of this particular company are about £2. In other words, the share value of the property is £700,000, and the company has the manipulation of these shares, and they have only put up £80,000. There again the “reasonable terms” to the company are very poor terms for the State, and very good terms to the speculators and the market manipulators, most of whom are living in Europe. It is very easy to be wise after the event, and, therefore, nobody can accuse the Government or the Minister of being negligent in this matter. But I think this proves that if the State wishes to get the best possible benefit out of our mineral resources, we shall have to exploit our minerals ourselves. The ideals of the companies and the State in this matter are in conflict. As far as the companies are concerned, their interest is largely in the share market, while the State is concerned in providing employment, and also providing revenue to run this country. There is another instance of market manipulation which I would like to mention. I refer to the E.R.P.M. and Cinderella amalgamation. At one time when these companies were considering amalgamation, the Government was blamed in the House and by the Press for not guaranteeing certain debentures, but I think hon. members will agree with me when I state the facts that the Government were quite right in refusing to do so. At the time when this agreement was brought about for amalgamation, the E.R.P.M. shares stood at an approximate value of £1,000,000. To-day, although there has been nothing done on the new property, the shares stand at over £3,000,000. While the going is good, as the saying is, the controlling houses are making hay. They have recently taken up 500,000 shares which they had on option at 12s. 6d. The shares stand in the market today at 27s. 6d., so that on this little deal alone the controlling houses made a profit of £375,000, and got £12,000 commission for doing it. I would like to mention the Cinderella mine. Hon. members will probably remember that the Cinderella mine was closed down for 14 years, because there was said to be no money to develop it, and the controlling house, on behalf of its shareholders and debenture holders, shed crocodile tears because the Government would not assist them. Through the market manipulation following amalgamation, the cash received, and the value of the shares held by those interested in this mine, which a year ago was considered to be bankrupt, is £1,000,000. So I think hon. members will agree with me that under these circumstances the Minister and the Government were quite right in refusing to guarantee anything on behalf of this company, and it proves what a scandal it was that a mine of this description should be closed down for 14 years. No doubt, acting on the advice of the then Government Mining Engineer, Sir Robert Kotze, the Government set its face against State mining. What I would like to know is, whether the Government is going to adopt a policy of State mining, or, Micawber-like, to wait for something to turn up. I would suggest a scheme that has had the approval of one of the cutest mining men in this country, Sir J. B. Robinson. In 1925, when the Government advertised for someone to take up one of its areas, Sir J. B. Robinson offered, on a five per cent. commission, to float a company to take up one of the areas. I am going to repeat that suggestion, but, instead of putting it in the hands of a private individual, I would like one of the Government officials to be employed for this purpose. I would suggest that a company should be floated with a capital of £1,500,000, and that shares should be offered to the public at 5s. per share cash, and the balance paid as required, as is being done in the case of the Geduld East. I am satisfied that if this were done, the public would apply for the shares in great numbers. The Government Areas has been a great success, and when the public were invited to subscribe for shares in that mine, the shares were largely over applied for, despite the fact that the value of the Far East Rand was then unknown. The same thing, I am sure, will occur again. It is said that in this country the amount standing to depositors in savings banks per head of population is small as compared with other countries. The reason for that is that in this country, and particularly in the Transvaal, the average man does not put his money into savings banks, but prefers to go in for dealings on the stock exchange, and for this reason I am quite satisfied that the shares will be eagerly taken up. It might be said that the big mining houses would not participate, but I am not so sure about that. They are just as keen on making profits as other people, and would also like to get control. But even if they do not participate, they can be done without. People who follow mining will remember that a few years ago the Wit Deep Mines were on the point of being closed down by the Corner House, I believe it was. Then the small shareholders got together, and threw out the nominee directors, and took control of the mines themselves. Ever since that, the mine has never looked back. It has paid dividends regularly, and is now one of the most steady going mines on the Rand. I do not see any reason why the same thing should not be done here. [Time limit.]
The last speaker advocated State mining, and I wonder if the Government will go in for it, and if that is to be one of the prices we shall have to pay for the Pact. As for me, I do not believe in the truth of what one of the predecessors of the Minister (Mr. Sauer) said when he was asked why a certain thing had cost so much. He replied that he could not say, but that there was one thing which was always the case, viz., that what a private person could do for 10s. would always cost the State £1. If the Government is asked to undertake such things, then I hope that it will bear the words of Mr. Sauer in mind. I fear that we shall as it is have an experience with the iron and steel industry.
Do you hope so?
No, but I am afraid of it.
You Saps are always afraid of tackling a thing.
The matter I actually want to speak about is Act No. 36 of 1920 in connection with customs tariffs and excise duties. When it was before the House it was said from this side that it was feared that it would have the result of causing loss to the small manufacturers. Unfortunately, we find that that has already been the case. The result of the provision that articles which are imported to be made up in South Africa have to be directly imported by the manufacturer, who intends to make them up, in order to escape the higher customs duty, is that the large manufacturer if he wants to escape the duty must no longer buy from the wholesale merchants as he used to do, but import himself. Because the articles are free of duty, it makes things so much cheaper for him. The provision that the manufacturer who imports articles must himself make them up and may not sell them has an injurious effect on the smaller manufacturer. The latter finds now that if he wants a thing he can only get it from the retail merchant, because on account of the large manufacturers, who work at all on a large scale, importing themselves, the wholesale merchants no longer import the articles. The small manufacturers formerly went to the manufacturers to buy their supplies, and the latter imported sufficient and had the right to sell, but the large manufacturers no longer have this right. The wholesale merchant finds that it is no longer worth his while to import the articles and, therefore, the small manufacturers have to go and buy from the retail merchants, and pay the customs duty. The article costs so much more that the small manufacturer cannot compete with a man who manufactures on a large scale. There is a case where a harness maker complained to me that he formerly bought his supplies from a certain manufacturer, but that the latter, since the coming into force of the Act, can no longer sell to him. He now has the greatest difficulty, because he has to buy from the retail merchant at a price which makes it impossible for him to compete with the large manufacturer. When the Minister was at Colesberg a harness maker brought this to his notice, and he promised to go into the matter. The man, however, told me that he heard no more about it, and I promised to mention it in the House. This is a bona fide case where the bread is taken out a man’s mouth. He told me that he could now only do repairs, but could not make new harness. Every small manufacturer will suffer as long as only the large manufacturers can get the benefit of free importation.
I would like to draw the Minister’s attention to a request, which will be made to the Board of Trade to make a thorough investigation into the cement business. We have given this industry protection for a large number of years, and yet at the present time, unable to supply the need’s of South Africa, they are fulfilling contracts outside the Union and compelling the inhabitants of the Union to pay an enhanced price, not for the benefit of the industries of South Africa, but just to keep up the price. I would like him to go into this matter and to carry out the true principle of protection; that is, that it should be to supply the needs of the people of the Union of South Africa.
I want to raise a matter that I referred to earlier in the session, and that is, I want to bring to the attention of the Minister and the committee the events which led up to, I won’t say the dismissal, but the retirement of Sir Robert Kotze. Sir Robert Kotze, I need hardly say, is a man who served this country with great distinction for many years. It naturally came as a great shock to many of us when we learned that he had been told, in a summary manner, that the Government no longer required his services. I know the present Minister of Mines is not personally responsible for that, because it was done while he was out of the country. But I want to bring to the attention of the committee the events which led up to that, because they seem to me to throw a very serious light on the manner in which appointments have been made to high positions in the public service, and on the position to which the Public Service Commission has been relegated under the practice which now appears to obtain in regard to the making of these appointments. The matter which led up to the retirement of Sir Robert Kotze was the appointment of the chief inspector of machinery. A vacancy occurred in that appointment, which is one of very great importance under the Government mining engineer. That appointment had been vacant for some time, and had been filled by an acting appointment; one of the inspectors had been acting pending the making of a permanent appointment. The papers were laid on the Table by the Minister, and I am quoting from those papers. Sir Robert Kotze, who was Government mining engineer, wrote to the Secretary for Mines and Industries in the 30th August, 1926, with reference to what he understood was intended to be a permanent appointment to the position of chief inspector of machinery, and after sending certain documents regarding the qualifications of various candidates, he said—
From a subsequent letter from the department to Sir Robert, it would appear that on the 10th September an opportunity was given to Sir Robert Kotze of seeing the acting Minister of Mines and discussing the matter with him, but it would appear that there was some misunderstanding in Sir Robert Kotze’s mind as to what the effect of that conversation was. It would appear that the acting Minister of Mines seems to have been under the impression that he had told Sir Robert Kotze directly that he was going to appoint as chief inspector of machinery Mr. Mullins, who was one of the inspectors, but Sir Robert does not appear to have understood that, as will be apparent from a subsequent letter. The next letter is on the 16th September, from the Secretary for Mines to the Public Service Commission. This is from the Minister’s department to the Public Service Commission, and it says—
That appears to me to be a reversal of the ordinary procedure of the functions of the Public Service Commission. The law lays down that before an appointment can be made there must be a recommendation from the commission, which comes up to the Minister concerned, and he is not bound to accept their recommendation, but if he does not do so it is the duty of the Public Service Commission to report the matter to Parliament. But here the process seems to me to be reversed. The Minister writes saying “he proposes to appoint so-and-so and do you recommend or not?” The next letter is one from Sir Robert Kotze to the department, and it is from that letter that I come to the conclusion that he must have misunderstood what happened at the interview with the acting Minister of Mines. He says—
“You” is the Secretary for Mines and Industries. I fully admit that is a very serious statement for a public servant to make, and I draw from it the inference that it could only be justified by a very grave objection—not of a personal nature, but on public grounds—to the appointment that was about to be made. This person who was to be appointed was to fill the post of one of the chief officials under the Government mining engineer; he was a man with whom the Government mining engineer would have to work, and on whose advice he would, to a large extent, have to rely. Therefore, he felt it was a matter of very great importance to him that a person should not be appointed who, in his opinion, was unfitted for the post. Anyhow, he made that statement, and took his official life into his hands, so to speak. He said that if that appointment was made he should feel compelled to resign. The answer to that was a letter from the department to the Government mining engineer to say that his letter had been submitted to the Minister, and that with reference to its contents—
The letter from the Government mining engineer states that he heard only verbally of the Minister’s intention to make the appointment, but in this letter which comes from the department the statement was made that the Minister told Sir Robert Kotze on the 10th of November that when he saw him he told him it was his intention to appoint Mr. Mullins. That, again, seems to throw an interesting light on the position allotted to the Public Service Commission by this Government. On the 10th of September the Minister says it is his intention to appoint Mr. Mullins, and on the 16th of September a letter is sent asking them for their advice. [Time limit.]
Can I move as an unopposed motion that the hon. member be allowed to continue?
Not in the committee stage.
I want to draw the Minister’s attention to the continual shortage of native labour on the mines, and whether the Government will consider if it would not be wise to remodel their policy, at least to some extent? The report of the president of the Chamber of Mines dealing with labour last year stated that the maximum requirement of 194,000 natives had never been reached, despite active recruiting. No fewer than 131,000 British South African blacks were engaged, and the highest total employed was 185,000. I take it that 131,000 exhausts the supply available of Union natives, and if the gold mines are taking 60,000 natives from the Portuguese territories I cannot see why they should not make up their maximum. We might then say to the companies—
The Minister is entitled to make an agreement and say—
Another matter. The Minister said he would watch during the year the question of the boot supply which had been conceded to the companies. The Labour party object to mining companies engaging in trading, yet the concession was made to them to trade in boots. We know it was not the Minister of Mines who did this, but our party leader, the Minister of Defence, when meeting the Chamber of Mines. That boot business should never have been given to mining companies. The Minister of Defence, like the Minister of Finance, is exceedingly liberal towards political foes. Recently the latter surrendered £180,000 a year revenue to the mines, and as it is estimated the companies made 2s. 6d. a pair on 170,000 pairs of boots, they enjoyed £25,000 profit which should have gone into the pockets of traders. I am assured that either the companies or compound managers and other officials made that profit. The companies evince no gratitude whatever for these concessions. I wish to emphasize the necessity for backing up the efforts of the Union trade commissioners in New York. Our administrative office there is being starved, and we shall not get a bigger return for our efforts until more financial assistance is forthcoming. It is estimated that American tourists spend abroad over £40,000,000 a year. Many are tired of visiting other parts of the world, and look towards South Africa as a fresh country to explore, and if we spend an additional sum in making our attractions better known, I am told we can be quite sure that next year we shall have tourist visitors who will spend a million in the Union. If we were to double the export duty on diamonds, and so have our rough stones cut here, the diamonds we could then sell to Americans would be astonishing. However. I suppose I am again pleading for the politically impossible. The grant of £1,200 to the Imperial Institute is, I am informed, for its section dealing with minerals. If the grant is for the institute itself, I would vote for it with both hands, because of the facilities the institute gives to visitors from South Africa, but if the grant is for the mineral branch, it is time we reconsidered it for the wants of institutions in South Africa.
In order to bring the matter properly before the committee, I wish to move—
I make the reduction small, so as not to appear ungrateful. I was dealing just now with a letter from the Minister to Sir Robert Kotzé, in which he informed him that on September 10 he had an interview with him and told him definitely that he intended to appoint Mr. Mullins as inspector of machinery. The letter stated—
That was not what seemed to be a dismissal, although it is couched in language in which one would dismiss a servant, but in effect it was an intimation to Sir Robert Kotzé that as he was over the age at which he could legally be entitled to retire on pension, the Government intended to exercise its rights and that it was not prepared to retain his services in view of the fact that he had reached the age at which they had the right to ask him to retire. But it was as I said, tantamount to a dismissal on account of his having used language to the Minister which the Minister thought improper, coming from an officer in his position. Those of us who know Sir Robert Kotzé can appreciate that what made him use language of that kind were exceptional circumstances which he thought were of the gravest character. The appointment he held to be totally unsuitable from the point of view of the public service. Sir Robert replied—
And he goes on to discuss the date of his retirement. Then comes the statement setting out the grounds on which he thinks this appointment was unsuitable. It reads—
The facts are the Public Service Commission duly recommended the appointment of Mr. Mullins and he was duly appointed. I want to know what were his qualifications for the post? He was not a senior officer; there were other officials senior to him. He was not bilingual, so it was not a question of over-riding officials who were senior on the ground that they were not qualified in both languages. That has been done in the past and very often it is justified. In this case the qualification was not there, and knowing Sir Robert Kotzé there is no reason for rejecting the statement of the mining engineer that this official was not qualified by education or technical experience to hold a post such as that of chief inspector of machinery. Therefore, I think we are justified in asking what were the qualifications this man possessed which not only led to the Government proposing him for the appointment but led to the Government forcing his appointment at the cost of losing an official with the experience, and I might almost say a world-wide reputation, of Sir Robert Kotzé. The appointment was forced through at the cost of losing his services and the Minister who did it was only the acting Minister. He did not wait until his colleague, who was the Minister of Mines, came back. Surely, there must have been some grounds on which the Government felt justified in taking this step. Another aspect of the matter is the manner in which the recommendations of the Public Service Commission are treated. It is required under the law for appointments and promotions in the service to come from the Public Service Commission. The present Public Service Commission was recently installed in office in place of the former commission whose appointments were not renewed, although their retirement cost the country a lot in pensions and retirement allowances, because they were not in sympathy with the policy of the Government. Are we to suppose we have now got a commission guaranteed to be in sympathy with the policy of the Government? I think the main value of a commission such as the Public Service Commission is that the Government should not be able to rely upon them being in sympathy with what they want. They should be men of independent judgment. That is the great value of a public service commission, and if we are going to have one simply to be in sympathy with the policy of the Government, and say exactly what the Government wants them to say, then the value of the commission has gone. We know the spirit which is brought to these matters. We had a telling illustration the other day when discussing the railway budget, where reference was made to a certain report from railway officials in regard to civilized labour. That report in some respects criticized the policy and we had a strong protest from the hon. member for Troyeville (Mr. Kentridge against such officials being allowed to make such a report which was not in sympathy with the Government. He said if the Government had the strength it would not allow that report. In other words they would require their officials to say exactly what they wanted to be said. That is what I am afraid of and that is why I think the question is important. We must see that a body like the Public Service Commission—put there partly to protect the public service against political discrimination and largely to protect the public against having a, civil service swayed by political motives—it is our business to see this public service commission is what it was intended to be, a body which is going to express its opinions independently of what it thinks the Government may want. If it is to be told that the Government intends to appoint so and so “What do you recommend?” That is placing the Public Service Commission in a false position. I do not say the Government must always be bound by the recommendations of the Public Service Commission. The Government are responsible to Parliament and the Public Service Commission is not responsible. So the Government must take the responsibility. That commission was appointed for the purpose of being a body that would report independently as to what it might think and report on any matter of appointments and promotions solely on the grounds of what they considered would be the most efficient recommendation they could make. They were put there to recommend officials for appointment or promotion solely on the ground of getting the best man into the place, and not on the ground of recommending a man whom they thought or might have reason to think that the Government wanted to appoint. If they are going to follow that line of being subservient to what they think or are told is the intention of the Government, then they are not discharging the function for which they were appointed under the law, and they might just as well not be there at all. That is why this incident has a more than merely temporary importance. It shows the drift of affairs, it shows the spirit which is growing up in the service and it shows the place which is assigned to the Public Service Commission in the outlook of the Government, and therefore I think it is right that this committee should know what were the reasons that prompted the Government to make this appointment, an appointment that has cost us the services of Sir Robert Kotzé, and an appointment which has definitely assigned to the Public Service Commission a position of purely secondary importance, a position in which it is made to look not to the welfare of the service as a whole, not whether each particular official is even fitted to serve the Government in that particular capacity, but in which it has to look to what can be discovered to be the intentions of the Government, and do what they want it to do. I hope the Minister will be able to give us an explanation of this matter which will take away from it that aspect, which, I must say, to me, at any rate, it at present bears.
There was one thing we expected the Government to do when they took office, and that was to go into the question of what fits are made in compounds and what becomes of those profits. That would be a perfectly legitimate thing for a departmental enquiry at least. The position in regard to it is that, first of all, we do not expect companies to make any profit whatever on their trading with their employees.
They are not allowed to trade with them.
The hon. gentleman is very ready at giving information, and we are delighted to have it, because we look to him for that lead which always comes from him with such grace, especially in the higher professional position which he has now reached, and on which I wish to congratulate him. The other day, when he was putting the Prime Minister through his facings and also the Minister of Justice, it reminded me of a tradition in school that the boy who brings a cane as a present to the master is usually the one first to have it inflicted upon him. True, technically, companies are not allowed to trade; so far as the gold mines are concerned, we endeavour to limit them. Now we come to other compounds where companies are allowed to trade, providing they purchase the goods locally and then sell to the natives employed. Take the Premier Mine for one, does that mine make a profit out of the boys, or does it not? It is supposed to make no profit whatever. Then there are other companies also which, to my knowledge, there have been serious complaints about. One of these companies, a native told me, subdivides a bag of meal, for instance, and it is sold to the boys in 5 or 10-lb. packages. I was told the company makes a large profit. So with regard to sugar, and many other things. Natives complain bitterly that in the compounds they are obliged to pay far more through various goods being divided than they would pay in the stores. That is one of the things I expected this Government to make a close enquiry into. We hoped with the change which has taken place in regard to departmental administration, that that matter would be gone closely into, because it has a bearing far beyond the question of merely making profits. Take our leading merchants at Port Elizabeth, Cape Town and elsewhere. Goods must legally be purchased locally. I know of a town where there is a very large sample room which has in it everything from a German small-tooth comb to, say, a United States army blanket. The companies’ representatives look through the showroom and order what they want. I am not going to say that particular showroom belongs to a Cape Town merchant or a Port Elizabeth merchant or a Johannesburg merchant, but I do venture to say this—if the owner of that showroom were in this Parliament he would not get up and adversely criticize, say, De Beers Company at Kimberley, because if he did so the orders his firm would get through that sample showroom, from that company, would not fill a quill tooth-pick. That is just where the whole thing dovetails into our political life. It enters into our politics, even into our Houses of Parliament, if I may say so without being called to order. Certainly while this Government has the opportunity, an opportunity which may be lost at any time, it should go closely into this question of what these companies do with compound trading profits. I hope this Government is going to shake off connection with anything that may tend to bring it under the great financial interests which have wrecked the reputation of Government after Government, and kept this country so far behind other parts of the empire.
There are a few points about which I should like information from the Minister. In the first place, I want to ask him whether he is able and prepared to give the information about the present position of the platinum mines. We are aware that many people have invested money in South Africa in the platinum fields. Whether it was wise or foolish, I leave alone, but it is desirable that the Minister should give us more information about the future of the platinum fields and about the policy he will follow in developing the mines. I should also like information whether the judgment of the Supreme Court in connection with the proclamation of farms and mynpachts will have any influence on the policy now being followed by the Minister. My second point is one already mentioned by the hon. member for South Peninsula Sir Drummond Chaplin), viz., the sum of £4,000 on the estimates for construction and maintenance of roads, drifts, etc. It seems to me that £4,000 is a stereotyped amount which comes up on the estimates every year, because it was once put at that. Quite a number of years ago the amount was £10,000, and it was then reduced to £4,000, and has always remained so. I am surprised in view of the progress of mining operations in the country districts. I am not only speaking about the platinum fields, but also with regard to mining operation in asbestos, chrome, tin and copper. Those are all mines which are concerned in the amount of £4,000. It seems to me that the Witwatersrand and the diamond mining industry are attracting so much attention that very little attention can be given to the small mines in the outside districts, although the requirements of the mines also increases every year as their number increases. I want to ask the Minister to exhibit more sympathy towards the small mines, and to again increase the sum of £4,000 to at least the amount it stood at before, viz., £10,000. A third point the Minister is well acquainted with, viz., the inadequate regulations and legislation in connection with prospecting operations and the proclamation of farms. I just wanted to ask him the question whether he intends next year—I know it is too late this year—to introduce amendments to the gold law in order to remove the objections of many persons in relation to the proclamation and throwing open of farms.
I would like to refer to the speech of the hon. member for Yeoville (Mr. Duncan) in regard to the resignation of Sir Robert Kotzé. I have listened very attentively to the hon. member, but if he will take his mind back, history is repeating itself, because the same agitation took place when Sir Robert Kotzé was appointed to that office. At that time the late General Botha was accused of being a racialist for appointing Kotzé to that job. The same argument used by the hon. member for Yeoville was used by the press of the Witwatersrand when he was appointed. The late Government was accused of the same thing as the present Government is being accused of.
Evidently you were not here.
I remember the agitation that was going on. History is repeating itself. I do not know Mr. Mullins, or anything about the appointment, but I do know that on receiving such an impertinent letter—
any employer would accept the resignation. The matter I want to draw attention to is a very small one, and that is in connection with inquiries into fatal accidents on mines. Hon. members will remember that last year there was a big accident in a coal mine in Natal. When it came to a question of appointing a commission of enquiry, the Minister was quite prepared that the workers’ trade union should be represented, but he found the law was against him, and they had to have a judicial inquiry. The men have felt much aggrieved at that, because circumstances in the coal mines to-day are not what they were years ago. The men are organized; they are intelligent men, and they have a first-hand experience and knowledge of conditions under ground, and they would be able to bring out facts in an inquiry which even a mining inspector would not be able to bring out. They have made representations to the Minister and the trade union congress has also made representation that at these inquiries practical men should be represented. I would like the Minister to make a statement as to the steps he has taken or proposes to take to bring about a change.
I would not have taken notice of the remarks from the hon. member for Pretoria West (Mr. Hay) unless he had a reputation as a diamond mining expert. Naturally the hon. member, having been closely connected with diamond mining in the course of his varied career, poses as an authority on compounds and the profits made in those compounds. He must not think that every mine is managed on the same basis as the Roberts Victor, where, I have no doubt, they made big profits in the compounds, but at the same time, the public lost their money. I, for one find a great difference between making profits out of a compound and making them out of the public who have been gulled by misrepresentation. The hon. member insinuated—he did not come out into the open like a Britisher— that the De Beers Company was making enormous sums of money out of the compounds. The compounds are run at a loss. I make that statement positively. All the requirements of the compounds are purchased from merchants in Kimberley. Nothing is purchased outside. There is no profit made at all. I state that in reply to his insinuation that enormous profits have been made in the compounds, not used for the benefit of the country, but in a dangerous way. The hon. member is not the only delinquent, because I had to refute this statement many times in this and the old Cape House of Assembly. The fact remains that no profits are made out of the compounds of the De Beers mines. I cannot speak for other companies, because I have not the knowledge.
I should be delighted indeed if the Government could be persuaded that profits are not made. So far as insinuations are concerned, I simply mentioned what had been brought to my notice in regard to certain compounds. If they are run at a loss, then, if the Government would get a report and make it known, it would carry much greater weight than any coming from the hon. member for Beaconsfield. He has insinuated that a company with which I was once connected made profits from its compound. It certainly did. I would ask him why it is that the company floated and run by his friendly rivals, Lewis & Marks, is always selected by him for attack. Mr. Isaac Lewis, who recently died, was respected here and in London. For the late Senator Marks I entertained a very great and sincere regard. There is no evidence that the company was fraudulent—it was certainly as honest as the Jagersfontein company, of which the hon. gentleman is chairman—can I say more than that? The Jagersfontein company put out balance sheets which it was said by a former government in this House, were not in accordance with the law, but the Government declined to take steps to ensure compliance. If mine labourers are fed at a loss and do not earn their keep, things should be put on a fairer basis to the company!
I am not going into the Robert Victor affair, of which the hon. member was the chairman, but I have been chairman of the Jagersfontein company for a quarter of a century and I defy the hon. member to state or to convince anybody that a false financial statement was ever printed or distributed either to shareholders or to this House. I challenge the hon. member to say there is the slightest foundation for it.
I accept the challenge of the hon. member, and ask him if his company did not put in its accounts again and again that diamonds on hand were reckoned as valueless —a thing that would not be allowed to any merchant company in rendering an annual statement to Government. It would probably lead to a prosecution under the law.
That was not what you said just now. You said that a balance sheet had been submitted to this House which was false.
I have yet to learn that a false balance sheet is one that treats its assets at low instead of high values. The hon. member is not in the habit of depreciating the value of anything in which he is interested. All the diamond companies take into account their stocks at a low rate, because it is an article of pure luxury, as they do not know what it will realize. If that is an “informed statement” of the hon. member’s, he never spoke the truth in his life.
When my time expired I was talking about the pegging. All pegging of a prospecting area in Namaqualand was lawfully done. Most of it was done by practical farmers who were not lawyers. When they pegged they believed they were acting according to law. If it was done according to law and if the law says that a man can prospect for the time his licence is available for (12 months, in the Act) then I want to ask the Minister what will be the case where the proclamation was issued before the period for which the licence was issued has elapsed. The money is still lying with the magistrate and the people have the licences in their pockets. Will they have an opportunity of prospecting for the time to which, according to the licence, they are entitled? If the Minister tells me that it is said on the licence “for one month paid in advance” then I ask the Minister whether the wording of the licences differs from Act No. 5 of 1899. If there is a difference who is responsible for it? Is it the Government who has intentionally made an exception? On the other hand if the licence was issued according to law then it seems to me the man is entitled to prospect for a year. The Minister on the other hand has the right of issuing a proclamation to stop prospecting, but what about the period which has still to run? Then I want to raise the matter of the prospected area being lost to the man who has done the prospecting. If it is so then the Minister should say whether he will prohibit all prospecting when he hears where diamonds are to be found.
It will be prohibited until the Lichtenburg fields are worked out.
When the Lichtenburg fields are worked out then they will all be poorer than they are to-day. If we are to look at Lichtenburg then nothing will be done in Namaqualand. Why does the Minister not close the Lichtenburg fields? If he can stop prospecting in Namaqualand he will also be able to do so if more diamonds are discovered in the Free State or Transvaal? Will the Minister proclaim them also? I want to remind the Minister that when a man is strong he should be merciful and if he has the law with him then he must not abuse it. Under the old Acts, there are powers in the hands of the Minister which can be abused. In one part diamonds were found in a small area, but the largest part was not prospected and yet it comes under the proclamation. There are thousands of miles where no pegging has taken place and where people may not look to see if there are any diamonds. It must never be forgotten that there are people who have sold farms for a bagatelle because the closing has given the buyers a chance. Who is the suffering party? It is the practical farmer who has been there for years. If prospecting is stopped they will have few chances. I hope the Minister will give me a plain answer.
I would just like to ask the Minister with regard to the item fisheries and I want to support what has been said with regard to the hope that the Government will take some action to develop our fishery harbours round the coast. I would also like to ask the Minister—it is a matter of considerable importance and interest—the way in which that £10,000 is being used. I am glad to see it is on the vote again. Is it the settled policy to plan a campaign as it were? I am glad to see that our fishing exports have been steadily growing and that a considerable amount is going to the United Kingdom, where I believe there are great potentialities for our fish as well as our fruit and other produce. I hope everything possible will be done to develop our fishing harbours.
I wish to associate myself with the remarks of the hon. member for Aliwal (Mr. Sephton) and to congratulate the Minister and Mr. Warington Smyth on the interest they have taken in stocking our streams with trout. I wish at the same time to point out the danger of allowing carp to be placed in our rivers, for if that is done no trout will be left in a few years. In the district I represent we have some very fine trout streams and we have hundreds of visitors—South Africans overseas—who are attracted by the trout fishing. Mr. Warington-Smyth in his introduction to the report on the inland fisheries remarks that the fate of carp-ridden rivers as disclosed in the report emphasises the danger of stocking rivers with carp. Carp so muddied the water in the Mount Frere reservoir that it had to be emptied and it was found four or five years after the first carp had been placed in the reservoir that they had increased to such an extent that when the reservoir was emptied there were six wheelbarrows of full-grown carp and millions of young ones. I have seen rivers in the Eastern Province one seething mass of carp. The provincial councils are responsible for the trout hatcheries and the Minister should introduce legislation prohibiting the placing of carp in rivers suitable for trout.
I believe that the Minister has not yet received the second report of the Commission on Fishing Harbours. It would be wiser for the Minister to wait until he receives the second report on the coastal fisheries, harbours and shelters before taking any action, for if we commit ourselves to developing one area before we have all the information in front of us, there is a risk of neglecting an equally good or better area, simply because we are not fully informed as to its potentialities before undertaking expenditure. I wish to endorse very strongly all that has been said as to the value of trout fishing in inland waters, but there are many other edible fish which should be introduced, especially to those rivers where trout will not prosper. Carp are not a good edible fish, and are most destructive to trout, and should be eliminated. One hen carp is responsible for 500,000 eggs every season. I wish to refer to the question of the importation of fruit pulp, regarding which I asked a question on February 8th. The total amount of fruit pulp imported into the Union last year was 401,010 lbs., 374,168 lbs. of this being from Australia, which supplies us with 90 per cent. in both quantity and value of this importation. When I raised this question last February, I was told that the fruit pulp imported was made from fruit not grown here. A farmer near me, however, was told to stop growing strawberries, as the jam factory did not require that fruit, which is largely grown in the Western Province. There is not much in fruit growing at present, and it is not encouraging to our fruit growers to find that strawberry, raspberry and even apricot fruit pulp is imported when we produce apricots in thousands of tons, and strawberries on a large scale. We cannot stop manufacturers importing it, but we must discourage it. We are looking to the fruit industry, especially deciduous fruits here in the Western Province and the Eastern Province, and the citrus fruit from inland and the eastern coast, as something which is going to be one of the biggest industries in the country. I do not want to mention names of firms in this House, but it is a fact that the production of jam in the country is mostly in the hands of one big firm, which has bought up other factories. We cannot prevent these people from introducing stuff from overseas, unless we deliberately undertake the extreme policy of protection as proclaimed so loudly from the Government benches. Our primary producers especially ought to be protected. I would, therefore, rather see a stiff protective duty on fruit pulp than protection for the manufacture of shirts. We can produce ample fruit pulp here if there is a market.
Why cannot we produce it as cheap as Australia?
I think that is a matter of turnover, largely, of soil fertility and methods of farming. The point is that the people who are chiefly handling the jam factories in this country are the makers of jam in Australia. The overseas market for the Australian product is the east, and the overseas market for this country also is East Africa and the east generally. I think it is fairly obvious that firms whose main market for export is the same as that for their Australian product will not aim at over-production or more production here than will meet the requirements of this country. The figures I have given are purely for fruit pulp. Jam in tins and glass jars and preserved fruit imported are over and above these figures. I think we look especially to this Government to carry out its proclaimed policy of protection, and here is one case where protection is quite legitimate, and should be given. I know I am up against my hon. friend the member for Cape Town (Central) (Mr. Jagger) on this question, but I go further and refer again to the chicory industry of this country. It has got what on paper sounds a big enough protection, but I would like to see the duty on chicory the same, whether ground or in the raw state.
Fourpence a pound?
Fourpence a pound sounds high enough, but I want an equal duty for all classes of imported chicory. I want to put in this word on behalf of the fruit growers, and to ask the Minister to take into consideration what can be done to give protection to the growers, and to encourage the establishment of jam factories on a proper scale here. I have been told it is a question of the price of sugar, but the hon. member for Zululand (Mr. Nicholls) assures me that if sugar is used in the manufacture of jam, a rebate is made which adjusts the matter.
I wish the Minister would tell me what exactly is the object of that unsightly structure on the foreshore at St. James. It looks like a broken-down municipal stable. I have been told it is an aquarium for fishery research work. I have had occasion to go in there, and I fail to see what it is for. It is an eyesore to the inhabitants, and on getting inside I found two sand sharks looking very much ashamed of themselves, three melancholy crayfish and two sardines. They constituted the total inhabitants of the aquarium.
At any rate, it was some sign of past life.
I know the hon. gentlemen on that side live in the past and don’t look to the future. That building is a grievance. As I have been disenfranchised under this iniquitous electoral law, I am seriously thinking of being registered in the South Peninsula. I am disenfranchised regularly when I come to Parliament, and I am disenfranchised again under this preposterous Bill. That is how I come to be taking an interest in the affairs of St. James. It is the only spot left in the Union where an unfortunate member of Parliament like myself is likely to find a resting place.
A final resting place?
This sardine factory is a standing grievance with the residents of St. James, and with the residents of the Peninsula generally, because St. James is a very popular playground. I think the place ought to be dynamited and blown off the face of the earth. Another matter was raised by the hon. member for Cape Town (Harbour) (Maj. G. B. van Zyl), and that is the weighing machines at the station. When a man reaches my age and weight, it gives him a shock to find in the morning he weighs 11 stone 6, and in the evening he turns the scale at 13 stone 6. If a merchant is found with false scales, the Minister will prosecute him, yet we find the Railway Department running a whole series of false scales. I tested the thing myself four times last year, and I wrote to the papers about it, but they did not take any notice, so I come to a higher authority.
Was it a penny in the slot?
I tried the penny in the slot, and was extravagant enough to try the threepenny one, but they all varied four times in one day.
Never mind. Your weight is accurately appraised here.
I know it is on this side of the House, and I hope it is on that side. I suggest the hon. member for Riversdale (Mr. Badenhorst) should walk down to the Cape Town railway station to try these machines, and I will provide the funds, then let him report to the Minister. It is not only at Cape Town, but along the suburban lines generally. All these things are out of order.
Will you be responsible if the hon. member for Riversdale breaks the machine?
No, but I will insure him. The penny in the slot chocolate machines suffer from a similar disadvantage. I tested a chocolate machine at Fish Hoek the other day with my small children.
Business suspended at 6 p.m., and resumed at 8.6 p.m.
I would like to ask the Minister if he is going to reply to our questions.
Certainly, I will reply. I do not intend ignoring them. It is unfortunate that our procedure is such that very important questions which are raised in the committee stage cannot be answered fully, because, obviously, the Minister is not posted regarding everything, and even his officials cannot often give off-hand the information that is required, and further, this ten minutes’ system leads to a very disjointed debate.
We will give you more than ten minutes.
That is not my grievance. I must say at once that the observations of the hon. member for Cape Town (Central) (Mr. Jagger), the hon. member for Newlands (Mr. Stuttaford) and other mercantile members are generally discounted by me in advance; I won’t say in toto, but I have got to discount them.
Why?
Because there is a palpable bias.
Why?
I have only got to point to the hon. member’s attitude as regards industries in the previous Government and the many conflicts between him and his present leader. There is always a bias against the Board of Trade and Industries because the Board of Trade and Industries to-day consists of exceptionally able men, although they may be young. I would like to see a public disputation between one of the members whom I would nominate and the hon. member on any platform. I would back a member of my board any time.
We will take it on.
I have, therefore, to take with a grain of salt these criticisms, and I am not going to answer them in detail, because the bulk of the questions were answered last year, and I do not propose repeating the same answers every year. The hon. member for Cape Town (Central) asked me about this intelligence officer, and I do not know why these discussions should always be interlarded with sneers. He mentioned the name of the gentleman occupying that position, Mr. Meyer, who was my private secretary. I can tell the hon. member this—that whenever the opportunity offers, I have such a high opinion of the abilities of the young gentleman occupying this position that I shall very probably appoint him a member of the board, if a vacancy occurs. He is one of the ablest among the younger members in our service to-day, and he was far too able to keep him merely on secretarial work in my office. As regards his duties and functions, he simply performs work, and I hope more efficiently than was performed by the previous industrial division. We had a division of industries under the previous board. I do not want to cast reflections, but I have a much higher opinion of the ability, the coordination, and the efficiency of the present board than of the old board.
You would.
Oh, certainly, there is a difference of night and day between them. Their work shows it in every respect. There is no comparison whatever. Now this industrial division has been reorganized and in the reorganization we have actually saved about £3,000 a year, and that work has to be carried on to-day. The hon. member says that the board was, under the Act, intended to be purely advisory, and I should not make it an administrative or executive body. My answer to that is that you had a division of industries at the time of the previous board. Does he suggest that the division of industries should never have existed at that time? Of course, he does not suggest it. And the work is being done to-day under the reorganization of that old division of industries. This intelligence officer does coordinating work. He has to deal with all the reports and communications that come from the trade commissioners, and he has to inform the public accordingly in South Africa, and his hands are full. He does a good work.
What do the members of the board do?
Their time is often more than fully occupied in reporting on the various questions that are referred to them, specific questions that are referred to them, not only by myself, but other members of the ministry, and often at the request of the public.
The public don’t see much of their reports.
Oh, come along! That is a gross exaggeration.
How many have been published?
I do not carry these figures in my head. The reports have been rendered available as soon as possible.
A large number of them are worth publishing, if you do not object to the expense.
That is for the Government to decide.
The very interruptions prove the palpable bias to which I have referred. As regards the imputation that they cannot be impartial because they do certain work that is not purely advisory. I can only say that it is entirely unfounded. I challenge the hon. member to adduce a shred of proof that any member of the Cabinet has ever suggested or dictated to the board the direction in which they should report. If that is the imputation that the hon. member makes or intends to make, then I can only say it is unworthy of his usual sense of justice.
I say they cannot do it. It is not in human nature to do it. I simply quoted the United States as an example. There is nothing personal about the matter.
Every human being has a certain amount of unconscious bias. You even find it in judges, even in such a paragon of impartiality and righteousness as my hon. friend. To show there is an imputation, the hon. member refers to them as—
Well, that is not worthy of him.
Without any question of bias, are they not there to help the Government to carry out a high protective policy?
They are all in sympathy with protection. They happen to be so. That is the declared policy of the Government too. It was the declared policy of the right hon. member opposite at the last general election. It is common cause, but this Government is a Government of actions, not of mere words.
Next week is going to show Government reaction.
In regard to public inquiries, I answered that fully last year, and the very same reasons hold good. My reasons were given fully, and the hon. member, if he has forgotten them, may read them in Hansard. The same holds good with regard to the hon. member for Newlands (Mr. Stuttaford). He asked me last year about Milan and Rotterdam.
I hope I don’t have to ask it again next year.
To be perfectly candid, I cannot see that the fact he is in Milan necessarily circumscribes his activities to Italy. He has done splendid work as regards Italy. He has had the embargo lifted off our fruit; he has done much to facilitate our meat trade, and he has done much to establish a regular service between Italy and the Union. I do not think there is a member in the House who will question the activity of Mr. Pienaar, our trade commissioner, or his ability. He has done wonderfully well. He is most energetic, and a most able man, and his heart and soul are in his work.
Where are the results?
The same sort of general sweeping statement. Do you suggest we should recall our trade commissioner from the Continent?
We suggest you should recall him to Rotterdam or Hamburg.
Then what is the reason for asking me what he has done? Because if he has done nothing staying in Milan he will probably do nothing staying in Rotterdam either. If that is the opinion of the hon. member of Mr. Pienaar’s work, it does not matter where he is located. It is possible that the Government may revise the position as regards Milan, but not consequent upon this criticism.
Never mind, as long as you do it.
It is a good principle to leave well alone, and our present commissioner there has done well, and for the present at all events, there is no intention to shift him.
Then why reconsider?
I do not know what may happen in the future. There may be developments which may render a change desirable. At any rate, it is such a paltry matter, to my mind, that it is not worth while detaining the committee on.
£8,000—a comparative trifle!
It is a comparative trifle, so let us come to things of substance.
*The hon. member for Namaqualand (Mr. Mostert) spoke repeatedly, and asked me numbers of questions. He cross-examined me just as often as on other occasions, interalia, at my office with deputations and otherwise. I only want to say that the hon. member recently accompanied me to Namaqualand and saw everything with me. Practically nothing that he has mentioned to-day and yesterday was mentioned to me at that time, but on the contrary the hon. member experienced with me that everybody in Namaqualand acknowledged that there was no other way open to the Government but to issue a proclamation. I want to remind the hon. member of this, that at the second reading he did not say a word of what he said to-day and yesterday on the estimates. I do not know whether the hon. member was quite in order, but that is a matter for the Chairman. I do not wish to prevent such matters being brought up, but I was astonished that the hon. member, who was present at the second reading, did not then unbosom himself about the matters which he has dealt with to-day.
One can make no alterations at the second reading.
The hon. member asked me why we had selected Namaqualand, and did not restrict Lichtenburg. It is for the simple reason, as I have often told the hon. member, that in the Transvaal there is no power to stop it. That is just the power which I now want to take, and which the Government proposes taking, and which, it is practically common cause in the House should be taken.
It goes too far.
Whether it goes too far or not is a question of administration when the Bill becomes law. That we shall find out, and it is unreasonable of hon. members to expect the Government to say precisely to-day what it is going to do in consequence of the new authority. How can we so accurately describe our administrative actions in the future at this stage? When I was in Namaqualand’ the hon. member for Namaqualand was with me, and everybody in Namaqualand thought that there was only one way for the Government to act, and one of the chief reasons was this, viz., that if we did not prohibit Namaqualand and especially Alexander’s Bay from prospecting, there would be an enormous rush from all parts of the country to those parts, and the consequence would be that the people whom the hon. member wants specially to protect, viz., the Namaqualanders, would not have been in a position to draw the advantages of it. I hope the hon. member will not run away with the idea—which is entirely wrong—that the Government is unsympathetic towards Namaqualand. On the contrary, the Government is very sympathetic and realizes that the north-west and Namaqualand have suffered much in the past from circumstances. The hon. member also knows that the prospects in regard to the production of copper are very favourable in Namaqualand, and that this in itself will probably give Namaqualand a great push forward. Now that a strong American firm has acquired rights over the assets of the old Cape Copper Company there will, if the rights are exercised for that reason alone, be grounds for a great advance in Namaqualand. With regard to diamonds, I have already told hon. members that the stones from Alexander’s Bay, Klits, Boegoeberg and Grootmis are of a very good kind, and where measures are taken by way of precaution and a proclamation is issued pending the passing of the law it does not mean that we are closing Namaqualand forever. Of course, that does not follow. The matter of fisheries has been raised by various members. I can only say that I have done what I could in the past. One of the great stumbling blocks is the difficulty with the provincial councils, but I do not say that what has already been done will be the last of our efforts. I will try to come to an agreement with the Administrator and provincial administration of the Cape, and when I am back in Pretoria and go to Natal, with the administration of Natal to see by a joint discussion—a small conference—if we cannot get rid of the administrative difficulty and improve the whole position.
That is sea and inland fishing, both?
Yes, I will deal with the whole question as far as possible.
With a view to the Government taking over the whole thing?
That is a question I cannot answer definitely at this stage, but I will have discussion with the administrations of the Cape and of Natal, and see what can be done to see if we can co-ordinate our joint efforts and really effect something. Then I come to the question raised by the hon. member for Boksburg (Mr. McMenamin). He has asked what is the attitude of the Government as regards State mining. As I have referred certain members of the Opposition to my answers of last year, I must likewise refer the hon. member to what I said last year. The hon. member will realize that, for instance, in the Precious Stones Bill, we are taking powers—
Now you gave your explanation last year. Don’t waste time now.
You realize that in the Precious Stones Bill we are taking power to lease and declare certain alluvial diggings—in certain cases State alluvial diggings. Well, I do not suppose he is disappointed with that attitude, but when we come to the gold mines we have to deal with an entirely different proposition. I do not want to say that under no circumstances will the Government consider State mining as regards gold, but as things are to-day, there is certainly no intention to embark on State gold mining, because, as the hon. member knows, it means an enormous sum of money to do so.
An enormous gamble.
I will not say that, but I agree with him in the instances of the Sub-Nigel and Geduld East. I gave an instance the other day. After my speech on the second reading of the Precious Stones Bill, I was told I was raking up matters of forty years ago, but I gave recent instances. Take the Geduld East Area, which was decried. The hon. member’s Government could not get a tender for it. We got tenders, and twice we turned them down because they were insufficient. Ultimately we got what I considered a better tender and better terms, and what is the result? They have hardly scratched the new area when the shares of the new company already stand at £2 a piece. With the Sub-Nigel the position was similar. They rose enormously, and from about 15s. they rose to between 80s. and 90s. Of course, the fact that we have appointed a new Government mining engineer must not lead the hon. member to infer that we are changing our policy or our course of action. After all, the Government mining engineer is an official, and the Government lays down the policy and is responsible for it I must say it is very difficult for me to believe; I have inquired into the circumstances diligently. Take the Cinderella mine. It is very difficult for me candidly to be convinced that the people who sank £1,400,000 in that mine before it came to a standstill fifteen or sixteen years ago—I do not remember the exact date—would wilfully let it lie there and keep it locked up. Candidly, I cannot believe that. If it was their intention to lock that ground up they would not have sunk that money in it, but would have left it in the virgin state. Do not let us overdo it. Often there are actions of companies that are not right towards the public and the permanent interests of the country, but do not let us try to prove too much. The hon. member has also asked for information about the future of the Rand. I have stated it previously here. The new Government mining engineer, whose accession to office was heralded by everybody and all the newspapers, and who is an able successor to Sir Robert Kotzé, whose merits I will publicly acknowledge—Dr. Pirow says he does not agree with the views expressed by Sir Robert Kotzé in that report. Although we do not usually publish these reports, I am going to lay it on the Table of the House, because I think the country should know that the views of Sir Robert Kotzé are not shared by everybody; and I know of leaders of the industry who do not share that view. They are more optimistic. It was only yesterday I saw a certain gentleman who told me that a mine concerning which it was predicted its life should have terminated twelve years ago was still working merrily and producing. Hon. members have heard of the Boksburg gap and of Mr. Bleloch. I am not an expert in geology, but Mr. Bleloch propounds theories that differ radically from the views of the Geological Department—Dr. Rogers and others, for whose ability I have the highest regard. I have read the report of a Russian geologist— Professor Kovaloff—who seems to share the views of Mr. Bleloch in various important aspects as regards the East Rand and the Boksburg gap. It seems difficult to dogmatize as regards these opinions. I personally share the view of the optimists; and the general view of a good section of the people of Johannesburg is that we shall go on mining gold for a much longer period than we think at present. Then the hon. member for Cape Town (Harbour) (Maj. G. B. van Zyl) asked me about a certain report.
By experts from Norway and England dealing with whaling.
We have taken action to act in the direction of that report as far as possible, but the difficulty is to get international unanimity and especially in the southern seas. It is very difficult to effect that unanimity. It is owing to the action of isolated countries in the southern seas, but as far as possible the countries which are of one mind in this important matter, with which I sympathize, are taking action.
There is a Norwegian station there, and it is going on.
There is a close season with them, and it is properly controlled. As regards the Research Grant Board and medicinal plants, if hon. members who put various questions today—I cannot ask them not to put questions; they have the fullest right to do so—would only write a letter during the recess, I would do my best to go into these matters and take action where it is desirable.
I have brought it up every year.
Four years.
Personally, I cannot recollect it, but I do not want to dispute it. I will see this matter is specially referred to the Research Board. As to the assized scales on the railways, I am told by my colleague, the Minister of Railways and Harbours, that it is incorrect to say that these scales are at fault.
Notoriously incorrect.
I have my hon. colleague’s denial. I daresay that some scales, like all scales, are occasionally out of order. I suppose the best supervised scales are out of order some time.
These scales are supervised by members of the railway.
It is true an inspector from the Railway Department is charged with this duty, but he acts directly under Mr. Davidson, who is the head of the Assize Department—a sub-department of the Department of Mines and Industries. Every public servant is supposed to be impartial, whether he is in the Railway Department or any other department. Surely the hon. member does not suggest that where he is under the supervision and instruction of the Assize Department he will allow himself to be biassed in favour of the Railway Department. I will see what can be done, and will confer with my colleague.
*The hon. member for Ladybrand (Mr. Swart) asked me a question about the status of our trade commissioner in America. It is true that I gave him an answer last year and the status ought to be reconsidered, but the Prime Minister has only comparatively recently returned from the Imperial Conference. A motion will be introduced in the House in connection with the decisions of the Imperial Conference, and as soon as possible after this session the whole question of the status will be reviewed. This also agrees with the statement the Prime Minister recently made here. Then the hon. member for Winburg (Dr. van der Merwe) asked me with regard to Part 1 of the Customs Act of last year which gives an absolute preference to England on certain articles, and he asked me whether the other dominions also had that advantage. No, they fall under the advantages in Schedules 2, 3 and 4 with regard to the special article there named. That is according to the provisions of the Act. With regard to his request to establish a compound at Winburg in connection with the cement factory and the diamond mines there, I must answer that it comes under the Department of Native Affairs or of Police. My department at any rate has now power or right to create compounds there.
As regards the question of the hon. member for Hospital (Mr. Papenfus) as to road construction, if we look at the report of that committee we find it deals with globular millions. It is not for the Government to embark on millions of expenditure on road making. It is rather amusing to notice the conflict of opinion. The hon. member says we ought to make more roads, and when we do and construct beautifully smooth roads, we find the right hon. the leader of the Opposition, whom we are all glad escaped the serious consequences of an accident last night—complains it was due to the road. Last Sunday I drove over that very road, and between Cape Town and where you turn off to Kuils River the road is beautifully smooth and like a mirror. The right hon. member says it is too smooth, but the hon. member for Hospital’s complaint is that the roads are shockingly bad. The position, as has been explained by the Minister of Finance, is that the provincial administration is responsible for the roads, and while we value the report of the committee that reported on a roads policy, we cannot follow their policy to spend millions on road making. It is true the House passed a resolution last year, but we know how resolutions come before the House and how they are passed.
And we know how they are adjourned.
Yes, but when it is clear it is a matter for the provinces, a mere resolution does not justify our action in spending millions on roads. Now I come to the trade commissioner for America. I am surprised at the opinions that have been expressed, for Mr. Louw has done most excellent work. According to the figures I have our exports to the United States in 1923 were valued at £1,906,000—I suppose that was still the result of the war boom; 1924. £1,200,000; 1925, £2,100,000 and 1926, £1,963,000. I have just received Mr. Louw’s annual report, and although I have not had time to read the whole of it I find he says—
I have read Mr. Louw’s report, and it is very favourable. He has been very, very successful.
In 1925 our exports to the United States were valued at 9,214.856 dollars, but you must deduct from that 2,552,836 dollars worth of exports from the Belgian Congo, leaving a balance of 6,662,000 dollars. In 1926 the exports from South Africa to the United States were 19,826,000 dollars and deducting 6,500,000 dollars on account of the Belgian Congo that leaves 13,357,000 dollars, which shows an increase of 105 per cent. With regard to Canada, the figures are still more favourable. In 1925 the exports from South Africa to Canada were valued at 101,755 dollars, but in 1926 they were 1,001,236 dollars, an increase of 883 per cent. I don’t agree with the remarks of the hon. member for Bloemfontein (North) (Mr. Barlow) that Mr. Louw has been playing the politician. No, he has been very sedulously applying himself to his work as trade commissioner, but on certain occasions he has been invited to social or semi-social functions.
At Washington?
Both in Canada and the States. The greatest ignorance obtains about all matters South African in the States, and especially as regards matters political, and Mr. Louw has informed the people there as to certain political matters.
Probably biassed.
I daresay there is always some little bias, but I certainly do not take exception to his action.
That I cannot understand.
Not to a little bias, but to his putting them right as to things political. These are quite exceptional instances. Mr. Louw has done splendid work and hon. members are not entitled to pre-judge the situation. Give him a fair chance, that is all I ask. The hon. member for Swellendam (Mr. Buirski) asked about the trade treaty with Australia. There is no arrangement with Australia at present, and if he will look at the reports of the debates in the Commonwealth Parliament in the first session of 1926—they are contained in Nos. 17 and 19—he will see a debate on the importation of maize from the Union. He will find that very serious strictures were passed upon our methods and our manner of producing maize. The great objection seems to be that we employ native labour in producing maize.
Did you ask them if they had any objection to taking money from coloured people?
At present there is really no arrangement between us and Australia.
Are you negotiating one?
Not at present.
Do you intend to do so?
The attitude of Australia is not actually encouraging us to make any attempt.
The Minister of Defence is in Australia. He might as well earn his expenses.
It is delightful to have a little joke now and then from the hon. member who is usually so serious about figures and economics.
I have been following your example.
I must tell the hon. member for Hopetown (Dr. Stals) that I know nothing of the rumours that are on foot with reference to direct shipping communication between the United States and the Union. The hon. member for Colesberg (Mr. G. A. Louw) raised a question about the Customs Act and said that in consequence of the provision that articles imported for manufacture were exempt from customs duty the small manufacturer was now suffering. The hon. member gave an instance of a harnessmaker, and if I rightly understand him said that I had promised to the harnessmaker at Colesberg that I would go into the matter. As far as I can remember I did go into the matter and replied to him and the answer was that a harnessmaker or shoemaker was, of course, not the kind of small manufacturer intended by the law. If we were to treat him according to the suggestion of the hon. member we would open the door to fraud. That will be the simple consequence. To-day the people who import goods for manufacturing purposes get the articles from time to time as they require them. If we were to make a concession in the case mentioned by the hon. member then we should simply be opening the door to fraud. It is a great pity that people must suffer in the circumstances, but there is no other way. The principle is sound and I do not think the hon. member meant to attack it that raw materials which are imported into the country to be used in manufacture shall come in free of customs duty.
The small manufacturer is now being killed.
I think, however, that it is possible for individuals to get the things themselves. They can easily make arrangements with someone who imports goods as a large manufacturer if they themselves are small manufacturers. The question is, however, whether they are manufacturers. How can a harnessmaker be regarded as a manufacturer? It appears to me that the case does not, at all, fall within the meaning of the Act. They must be registered under the Factory Act to be able to get a benefit from the provisions in the Customs Act.
They do not use enough to justify them importing themselves.
That is unfortunately the result of the limitation of his own occupation.
The hon. member for Yeoville (Mr. Duncan) mentioned the case of Sir Robert Kotzé. I do not wish to say a single unkind word relating to Sir Robert Kotzé. The hon. member will remember in the early days, when Sir Robert Kotzé was appointed, I was one of the persons to mention his name, and I want to give Sir Robert Kotzé every credit for a long and honourable record.
Then why did you kick him downstairs?
You heard the reason this afternoon. It does not matter how long the record is of a high-placed civil servant, if he adopts the attitude Sir Robert Kotzé admittedly adopted, there is only one course open to the Government. Sir Robert Kotzé, after having seen my colleague the Minister of Defence, who was acting for me at the time, instead of waiting for the appointment that might ensue, and then considering whether he would resign or not, and then writing to the Minister that in view of the appointment which he had not advised and in regard to which he in fact advised the person should not be appointed, he is so dissatisfied with the appointment that he had decided to resign. That would have been a dignified and proper course. I do not say it would have been an advisable course. The hon. member for Yeoville, under the circumstances, admitted it was an extraordinary action, and said it was justified. It is exactly on that point where we join issue. Sir Robert Kotzé was not so justified. Just imagine what the result would be if any leading official in the country were to threaten the Minister or the Government in advance and say—
The whole position would become intolerable in the country. A civil servant is under no obligation to go to that extreme. It is his duty to advise the Minister impartially, candidly to state his opinion, and candidly criticize the proposed appointment, but when the Government or the Minister has decided, it is his duty to submit, for then he has done his duty to the fullest extent, and no more can be expected from him. After all, the circumstances were not so extraordinary. There was nothing in Mr. Mullins’ conduct or record that was so reprehensible that Sir Robert Kotzé should repudiate the suggestion of his appointment. On the contrary, Sir Robert Kotzé had chosen and recommended Mr. Mullins out of a larger number of applicants for the appointment of the inspector of machinery, and ultimately he became chief inspector of machinery. If these objections hold good now, they should have held good at the time Sir Robert Kotzé recommended him strongly from numerous applicants for the post of inspector of machinery.
He had not worked with the man then.
Why was he promoted above the heads of others, his seniors, who were qualified?
The Public Service Commission recommended his appointment. It is a stereotyped practice for the Civil Service Commission when an appointment has to be filled to refer to the department concerned and ask them to make a recommendation. Well, surely if a subordinate official of the department, say the secretary or the under-secretary, or some other official, may make a recommendation, why not the Minister? The right hon. member knows that has been the fixed practice. The Civil Service Commission do not simply off their own bat make appointments. They always give the department a chance to make recommendations, and I interpret the letter of the Minister of Defence as meaning “this is my submission to the Civil Service Commission.” I do not think it fair to interpret that letter as imposing his will on the Civil Service Commission. Sir Robert Kotzé asked to be heard, and that request was readily acceded to by my colleague.
Didn’t the letter from the Minister of Defence say—
Yes.
Well, that is pretty strong.
It may be the word “decided” was not well chosen, but in fact it means a recommendation. Ultimately the Minister can say to the Civil Service Commission “I do not act on your recommendation; I shall appoint another man.” Then it is reported to Parliament, but to say that was a dictation to the Civil Service Commission is somewhat of an exaggeration. Supposing the Civil Service Commission had written to the secretary of the department, and said “What names do you recommend?” and the secretary replied I have decided to recommend so-and-so,” or “I have decided so-and-so shall be appointed.” Surely the construction would be that he was recommending so-and-so. I do not think there is much in the word “decided.” The Public Service Commission is fully aware of its powers and functions. It was perfectly competent for them to say “No, we recommend somebody else,” and I have had that experience in the appointment of somebody else. I have had that experience recently. They gave my department an opportunity of making a recommendation, and nevertheless they have insisted upon the appointment of somebody else.
They must have a little backbone sometimes.
That is my view of it, anyway. The hon. member for Pretoria West (Mr. Hay) spoke to me about the shortage of labour on the mines this afternoon. I must say I was somewhat surprised at his remarks, because the general view is that native labour should not come from the east coast. In the early days, along with us all, I do not include the members who were then Unionists, but I do include the right hon. leader of the Opposition, we opposed Chinese labour tooth and nail. There is much to be said for the point of view that whether you introduce Chinese from China, or Portuguese natives from the eastern territories, it makes little difference; the principle is practically the same. My answer is that when we came into office, we found from the records and the correspondence that the right hon. member’s Government had laid down a policy with regard to east coast boys. They had stated that in the interests of the country it was necessary to place a limit on their importation, and that limit should in no circumstances be exceeded, and we notified the Chamber of Mines that the present Government shared that view and decided to follow it. With regard to the boots to the natives, last year the act amending the gold law was passed, and boots were specially excepted with regard to trading on mines. If the hon. member can lay data before me, I will go into the question again. I have been inquiring, but it is very difficult at times to get to the bottom of things and ascertain the facts.
Very often the boot is on the other foot.
If I am satisfied the mines are making a profit out of the boots, I will take the necessary steps to put a stop to it, if necessary by legislation next year. If they are not making a profit, we would not be justified in interfering, because it is advisable the natives should be properly shod. They suffer, otherwise, from the effects of poison from the floors of the mines, and in time they become almost crippled. It is therefore necessary that the mines should be able to insist upon the boys wearing boots, and to see that the boots are supplied at a reasonable figure. I am told that all they charge is the cost price and the cost of transport and actual out-of-pocket expenses for delivery. If the hon. member can give me any facts I shall be glad, and off my own bat I will go into the question again, and if I find that any profit is being made by the mines on the transaction, I shall do my best to take steps in the direction desired. In regard to the £1,200 for the Imperial Institute, there has been an amalgamation of some other concern with the Imperial Institute, the mineral section, I believe, and I find from the records, especially when Mr. Burton was in London on a certain occasion, that an arrangement was made which will terminate some time next year. I think last year, on the estimates, I told the committee that I did not propose renewing the vote for £1,200, but I find now an arrangement was made, and I think, at any rate, until that time has expired, it would not be the proper thing to leave it out this year. In regard to compound profits, the hon. member (Mr. Hay) says that when this Government came into power, one of the first things they promised to do was to inquire into compound profits. I do not know whether he was referring to the Premier Mine, but with regard to the companies on the Witwatersrand itself. I put a section in the Act last year. As regards the diamond companies, the only instance that I know of is the Premier Diamond Mine, and the State has an interest of 60 per cent. in those profits. I must say that to me, personally, it is news that it was promised to go into those compound profits.
I said it was expected—
The hon. member for Pretoria (West) (Mr. Hay) must not speak from the Treasury benches.
The hon. member has never conveyed that request to me, privately or otherwise. I hear of it for the first time to-day. In regard to the point raised by the hon. member for Germiston (Mr. G. Brown), re inquiries into accidents, and especially the recent serious and deplorable accident at a colliery in Natal, I am always anxious to give the workers, the miners, representation on such an inquiry, but, unfortunately, the law was against me, and the management of that particular colliery objected. I was told afterwards that the directorate in London, when it came to their notice that the management had refused to fall in with the suggestion of the Mines Department that the employees should be given representation on the commission of inquiry, repudiated the action of the management, and were very much dissatisfied. However that may be, I am generally in accord with the principle when inquiries are conducted, even on the Witwatersrand. By law the inquiry is vested in the inspector of mines, but I am quite sympathetic towards the suggestion that miners who have experience of a particular mine should be able to inform the inspector of mines as to the class of questions to be put to the witnesses and, of course, the management, on the other hand, to have the same opportunities. There always will be a side for and a side against, and I am in favour of the inspector of mines who has to hold the inquiry being informed by both sides.
My point is whether you are prepared to amend the law.
I think this is a matter that can be met administratively, and the inspector of mines, when he holds an inquiry at a particular mine, can get in touch with people representing the management and people representing the employees. There is no objection to that, and the inspector will thus be well posted before he formally holds the inquiry as to the procedure, the methods of operation, etc., underground where the accident has occurred. I have no objection to either side suggesting to the inspector of mines questions to be put to witnesses. At any rate, I will give that a trial, and we will see how it answers, and then if it proves unsatisfactory still, we will see what can be done further. The hon. member for Albany (Mr. Struben) asked me about the importation of fruit pulp. I understand that there ought, on the contrary, to be an opportunity of our exporting fruit pulp, instead of importing it. That is a matter which has been brought to my notice recently, not only by our High Commissioner in London, but by other people in our country here. It is a matter to which I am giving attention. As regards trout fisheries, perhaps the hon. member who raised this point was not here, but I will endeavour to hold a conference with the provincial administration of the Cape and also with the provincial administration of Natal, or at any rate with the administrators, so as to see what we can do by co-operation to effect what we all have at heart.
What about the £10,000 vote in connection with the fisheries survey?
The £10,000 is for the regular deep sea trawling survey carried on by trawlers to explore the coastal banks for edible trawl fish. The programme is the completion of the west coast exploration, the completion of the Tugela Bank survey on the east coast, and the completion of the Walvis Bay area. The rest of the vote, I suppose, is in connection with rivers, etc.
I am extremely sorry that the Minister should have put me to the trouble and occupation of time of making an inquiry again about this Board of Trade. It is a painful thing to have to take up the time of the House at this late hour, and my hon. friend could easily have avoided it by a little courtesy. He took up the attitude that if he had given the committee information 12 months ago, it is not necessary to give it again. My memory is not quite long enough to carry me back so far without its being refreshed. Honestly, I do not remember what my hon. friend said 12 months ago. Another point is that he was not quite fair in his answers to some things. He could give a full answer to members on the other side of the House in two cases, but when it happened to be hon. members on this side, it was quite another story. I should have thought that with the long parliamentary experience of my hon. friend he would have learned one thing, that courtesy in committee of supply is a very good thing indeed. Let him take a lesson from the Minister of Justice, and he will find that he will get his vote through much quicker. It is the only opportunity we have of inquiring into these matters. I pointed out, and I advocated strongly, that it would be very advantageous to have these inquiries into requests for protection or assistance from the State publicly. It is nothing fresh. It has been done in Australia. It is done, I believe, in the United States. Hon. members will recollect that we have before the House a proposal to put 2s. per 100 lbs. on sheet lead. This application is made by a prosperous concern who get most of their material from Broken Hill in northern Rhodesia, Here is the report—
Combining or not, it is certain that the proprietor of this lead works is a prosperous man to-day. The point is this—that if that inquiry had been held in public and everyone who uses lead heard of it, then I imagine representations from the other side would also be made to the Minister and the Board of Trade. It is to give the consuming public and the other side an opportunity of making those representations that I plead to-day, as I did over twelve months ago, that these inquiries should be always held in public. Let the public know. They have to pay the piper in the long run, and I don’t see why they should not know what is going on. If there is one fault about this Government more than another it is that they are afraid to let the public know what is being done. There are other departments where they are afraid of publication. I think the Minister could do a good deal in that direction. I want to make a few remarks about Mr. Louw. I am not going to be personal. I quite agree with what was said by the hon. member for Newlands (Mr. Stuttaford). I know Mr. Louw fairly well. There is not one word against him, and nothing has been said to-day. What we did want to point out is that the circumstances are against his doing a good trade in the United States, because we have found from experience that when you work up a good trade in the United States, whether it is merchandise or goods or products, and it comes up against interests there, those interests make representations at Washington and promptly an embargo is put on. We have an example. Quite a fair trade was worked up on the west coast in fruit from here. Suddenly the embargo was put on. We knew perfectly well it was merely an excuse. It had come up against certain interests, and they brought pressure to bear and got it stopped. So what chance has Mr. Louw or any other commissioner to work up trade there? It is all right for crude ore and asbestos and things of that sort, because I do not think they produce these in sufficient quantity. But let any of our products come up against interests there are our trade does not last long. That is what we wanted to point out. I have no doubt Mr. Louw works hard.
Also in respect of base minerals.
They will take them because they have not a sufficient supply themselves.
But he is doing well there.
I think he would far better in Canada than he does in New York. I would say: “Go up to Montreal and you will be able to do good business, because the atmosphere is more favourable.” They will take our stuff and our dry fruit especially. I hope hon. members on the other side will not think we are personal as regards Mr. Louw. There is also another point. It was said we had an increased trade with the U.S.A. The figures do not show it. This is the annual report of the collector of customs. Our exports to the United States of America in 1925 were £2,144,000 and in 1926 £2,002,000. So that, as a matter of fact our exports went down to a slight extent. Our imports from the United States tell a very different story. In 1925 they were £9,995,000 and in 1926 £11,383,000. [Time limit.]
I am disappointed that the Minister has not replied to the point I raised. I asked the Minister to inquire into the matter of lifting the embargo on fruit in the United States.
Yes, it has been one of the chief efforts of Mr. Louw.
I would like to say something more about it. It is a matter of the utmost importance to our fruit farmers to get further markets. We had the Minister of Agriculture a few days ago advising farmers to plant on. How are they faring with their export trade? This year they have fared very badly. I put it to the Minister that he should try and raise the embargo on such fruits as do not become infested with fruit fly. There are several varieties which do not carry fruit fly, such as grapes, apples, pears and plums
I will.
I am afraid he is not going to take it up seriously. America is sending a lot to us, and they are placing all kinds of barriers up against us. When they say: “We are afraid of fruit fly,” if we say “Raise the embargo on other fruits,” that would be a test of the genuineness of the reason given for placing such an embargo, and the only way to test the genuineness of the reason given is now to ask to differentiate and admit such fruits as do not carry the fruit fly. I hope the Minister will be able to tell u.s next year the results which have been arrived at.
The Minister now wants to make out that this is the first time that he has heard about the matter, and says that he heard nothing when he was with me in Namaqualand. The Minister surely knew about his proclamation, and surely knew quite well that farmers and farmers came and said that they had pegged in the Rigtersveld, and the Minister surely also know that licences were taken out, and surely also that a man at Springbok said that he had already spent £500 in prospecting operations and had found nothing, and that he still had a licence for a further eight or nine months. The Minister surely also knew that if the proclamation lasted long enough the licence would lapse, and the people would have nothing more and would suffer great damage. Now the Minister says that I came and bothered him in his office with questions.
I did not use the word “bother.”
I admit that I asked the Minister many questions, but has he answered one of mine to-day? I have the right in Committee of Supply on this vote to ask the Minister questions, and to raise the matter because, under this vote, there are amounts in connection with prospecting operations. My question to the Minister was a clear one. The Act of 1899 expressly says—and the Minister has read the Act and knows it better than I do—that if a person has obtained a prospecting licence he has the right to prospect for a period not exceeding twelve months. The people who have now taken out a licence for twelve months have surely the right to prospect for twelve months? What about the people who have only prospected for two months and are now being stopped. If the proclamation is repealed will they then have the right of prospecting for a further ten months. Well, if the proclamation continues, the people have the right of renewing their licence after the twelve months? If it is not renewed, or if, when the proclamation expires, the licence holder possibly does not any longer hold his licence, will the licences then be taken away? Is it the intention to do away with the prospecting licences? On the other hand, I asked the Minister whether the people in the prospecting area did not also have the right of making discoveries and getting discoverer’s claims? The Act surely says so clearly. If the Minister does not agree with me he can say so, but surely he can answer my question. Then the Minister says that I did not speak at the second reading. I considered the only chance for Namaqualand was the passing of the Bill, and in order that the Bill should be passed as quickly as possible, was why I remained silent. But what did the Minister do? Last Friday the Bill ought to have come up again, but it has not yet come on. Next week I shall have to go to the Olifants River with the Irrigation Commission, then I shall for days not have another chance of speaking. I must look after the interests of my people here, but I think that the other matter is just as necessary. I just want the Minister to answer my question. It is not a matter between him and me but a matter of public interest in which the life and death of many of my constituents is involved. I cannot play with it, and I cannot permit the Minister—even if he is my Minister—to play with it. An injustice has been done. The Minister says that there is no statute in force at Lichtenburg. What then about Prieska and Barkly? He is silent about that.
It will be thrown open again just before the election.
Our people in Namaqualand, who are to-day dissatisfied with the acts and neglects of the Minister, thank the Lord that they have not been handed over to the Opposition. Because I have a difference with the Minister, hon. members there must not imagine that I am going to speak as they would like. Namaqualand thanks Heaven that it is released from the Opposition.
I think that someone ought to reply to the statements made by the hon. member for Cape Town (Central) (Mr. Jagger).
The right man, too.
I also do not think that the Government should encourage any industry at the expense of the community. But when we have an industry like the South African Lead Works, which uses the products of the country, that industry should be supported. In producing an article from a raw commodity in this country roughly 15 per cent. is profit and interest, and about 35 per cent. to 45 per cent. goes out in the form of wages to the people of South Africa. Therefore, if any industry is supplying the needs of South Africa, and can meet the demands of its people, it should be supported. On the other hand, cement produced is not supplying the demand, but relying on the high prices of the commodity for their profit. As regards the trades commissioners, I think South Africa should be represented by trade commissioners in all countries, especially those living on our economic level, who are the only persons who can purchase what we produce. It is true that Great Britain is taking a very large percentage of our exports, but she does that because she has control of the shipping of the world, and then she sells and distributes what she purchased from tis country. We must realize that the time may come when we will have to sell direct, owing to the keen competition with the countries which are now buying through Great Britain. I should be against having trade commissioners in China and Japan and similar countries, because it would ultimately mean that they would supply us with commodities, but America, the people of which live on our economic and civilized standard, will ultimately supply a market for our products. We shall for a number of years import to a greater value than we export to America, because we are not so far developed as she is economically. Therefore, I support the Government wholeheartedly in its endeavour to encourage trade with America.
As regards the trade commissioner on the Continent, I agree as to the desirability of placing him in some other town than Milan, which is not a big distributing centre. He should be stationed at either Rotterdam or Hamburg, preferably the latter.
We have a sub-commissioner in Hamburg, and he is a very excellent man.
I met him there, and he is a very, very good man.
I am very glad to hear it. I hear it is the intention of the French Government to place a duty on our crayfish. What is the Minister going to do with the vote of £20,000 for diamond digging expenditure? Presumably this is for sanitary services. Is the Minister going to get any refund from the diggers? There is an item of £30,000 for the payment of bounties on iron and steel produced in the Union, but nothing was paid out under this heading last year. The research grant board vote is put down at £3,237. I believe a good deal of useful work is done by the board, which obtains reports on scientific and industrial subjects. Why does the Minister not print the reports or publish them in an official magazine? There used to be a Government publication which issued trade reports.
There is still a trades and industries gazette.
I am afraid my hon. friend keeps it secret. What is the use of having valuable reports unless they are published? There is one for instance, “an investigation into the cost of producing porkers and baconers,” in which I am interested, as I am in the trade myself. The Auditor-General in his report refers to the overseas publicity tour of the hon. member for Pretoria (North) (Mr. Oost). The total expenses of his tour were £536. I have not seen a report from the hon. member, although I saw some letters of his in the “Cape Argus.” The Minister should have called for a report and published it. I am a great believer in publicity. I suppose the Minister did not spend £536 simply for the fun of the thing?
I think it is rather up to us on this side of the House to defend Mr. Pienaar, the trade commissioner in Europe, against the Minister who said that it really did not matter where Mr. Pienaar was stationed as the results of trade which we would obtain through his efforts would be exactly the same. I have never heard anything but good of Mr. Pienaar and his work and his enthusiasm and I should imagine that it would make a great deal of difference whether you put an enthusiastic commissioner in the centre of Europe or in the Ural Mountains. It seems to me the argument of the Minister, does scant justice to Mr. Pienaar’s work. The position regarding European trade is this. The Italian trade decreased £100,000 last year. The central European trade, German, French, Dutch and Belgian, decreased £2,500,000. Now it seems to me very important and I hope the Minister will bear it in mind, when he is thinking of removing Mr. Pienaar to a live centre. The first thing the trade commissioner should do is to get into a centre where we are getting this big decrease. Now £2,500,000 decrease in one year is three times as much as the whole of the business with Italy. I hope the Minister will take this matter up seriously, and put Mr. Pienaar in a position where his undoubted enthusiasm and work will bear good fruit.
He personally thinks Milan is the best place.
I am simply giving the figures as they stand. The Minister does not seem to worry about these figures of trade which undoubtedly concern his department. We can only judge the result by the business got. That applies to all trade commissioners. There is one other point which probably appeals to the fruit farmers of the country. I would like to know what steps the Minister has taken with regard to the duty of grapes going into Germany. It is 45 marks a hundred lbs., whilst the duty on Spanish grapes entering Germany is only 5 marks. We do a lot of business with Germany and surely he ought to be in a position to talk to Germany on a thing like that. We ought to say, “We give you favourable terms with regard to your exports to our country, surely you are going to give us favourable terms as regards our exports to your country!” I should like to deal with the American question once more. I have nothing to say against Mr. Eric Louw. As I said earlier in the day you have put him at the bottom of a high tariff wall without any ladder to get over it, and he will never get over the wall. The Americans will see there is never any ladder over that tariff wall. Take our exports to the U.S.A., and consider what effect Mr. Eric Louw has on them. Take angora hair, £346,000. I would ask the Minister if he thinks it makes 2d. worth of difference in the export of angora hair, whether Mr. Eric Louw, or anybody else, is on the other side. Exactly the same amount would go whether we had Mr. Louw there or nobody at all. Take diamonds, £318,000. Does Mr. Eric Louw, or the trade commissioner, I don’t want to mention names particularly, I am talking about the position of the job—does he make any difference to the export of diamonds to America?
Why does your leader want to appoint a trade commissioner?
I wish the Minister would follow my leader in everything he does. The Minister as a rule does not change his policy in anything—even though the right hon. the member for Standerton (Gen. Smuts) may set a lead in another direction—
You don’t follow him yourself.
I am not likely to follow the Minister of Mines and Industries. The export of skins is £401,000. I should like to know how that can be altered by the trade commissioner in America. There is one thing America imports from us in larger quantities than any other country, that is something called “sausage casings,” and they import £16,000 worth of this stuff, whilst our total exports are only £26,000. I do not know whether the trade commissioner has introduced this celebrated commodity to America and has found us £16,000 worth of business! There was not a single tray of our fresh fruit introduced into America last year, yet the Minister says that Mr. Louw is looking into it. I can tell the Minister of Mines and Industries, that as long as California is in existence, you will not get fresh fruit into America. The only thing America imports in any quantity from us is raisins, £18,000. The Minister knows why they import raisins—
They are not raisins, they are dried grapes.
They are the only form of grape America imports from our country, and it is carried on under the euphemistic name of raisins. They are dried grapes ready for fermentation. I should like to know what is the likely action of the Minister with regard to this report of the Board of Trade and Industries called “business practice and public regulations.” It is a report issued by the Board of Trade and Industries, No. 73.
Is that the one on restraint of trade?
Yes, I think that is so, but I am giving the Minister the official title. I must say that the Board of Trade have been circumspect in this report. They do not seem to be falling over themselves to take on the job that the Minister thought it might be possible for them to take on, but if he refers to page 68 their third recommendation is that—
I will tell the Minister at once that the commercial community in South Africa do not want any “positive guidance” or administration of their affairs by the Board of Trade. I have nothing against the Board of Trade. I like these optimistic young fellows, they have the enthusiasm of youth and are prepared to take on anything, and I say more strength of their elbow, as long as they do not touch commerce and industries, but to suggest that we are going to have a body in this country to regulate business practice by means of “positive guidance”—well, I do not quite know what the Minister understands by “positive guidance,” but I can assure him that neither I nor any other business man in this country want any “positive guidance” from any Government official at all and I would very much like tile Minister to tell us whether he has any idea in his head of placing anything in front of this House like any of these draft Bills or any of these suggestions, because in an individualistic country like this I cannot understand anybody doing such a thing. [Time limit.]
The hon. member for Cape Town (Central) (Mr. Jagger) raised a point which has been of considerable interest to the House for some time, the question of reports made by Mr. H. Oost, M.L.A. A question was put and in the answer it was stated that the hon. member had submitted reports on various phases of his visit and that he had also contributed articles to the press for the guidance of the agricultural community. It was further stated that the results of the hon. member’s investigations, it had been proposed, should be compiled in pamphlet form and printed and distributed amongst the agricultural and industrial community. It was added—
Following up the question that my hon. friend put, I would like to know whether those negotiations were successful or not, if so, what they have resulted in, and at what time we may expect to have these extremely illuminating reports and pamphlets distributed amongst the agricultural or industrial members of the community.
You must put that question to the Minister of Railways. He sent Mr. Oost to Europe.
I would like seriously to add my support to the suggestion made by the hon. member for Cape Town (Central) that inquiries made by the Board of Trade should be open. We have advocated that over and over again and I cannot see with what justice that demand can be refused. The public are deeply interested in these matters. We have had a very interesting remark by the Minister of Finance that he now proposed making an inquiry into the result of the working of the proposals made by the Board of Trade during the last few years. When that inquiry is made I certainly agree that it should be made by some competent people who are not those who originated these proposals, which are the subject of discussion and inquiry. It is a very sound and fair thing for the Minister of Finance to propose that this investigation should be made. We made a big plunge forward two years ago, and however wise it may be, the country, I think, would like to know by an impartial and open investigation, whether that remarkable change of policy has or has not been justified. We have seen in the customs returns that last year very much larger returns were made than were anticipated. We know in certain cases that some of the recommendations of the Board of Trade appeared from subsequent events not to be justified. I do not know whether my information is correct, but I have it that as a result of what is taking place not only is the Government determined to have an inquiry into the result of the recommendations, but I am informed that the Board of Trade itself has been directed to call a halt, and at present it is very doubtful whether they are functioning at all in the direction of making these further recommendations, pending the result of the inquiries to be made by the Minister.
I know nothing about it. I am very sorry that the hon. member for Cape Town (Central) (Mr. Jagger) should think I was discourteous. I did not intend to be so, but so many questions were put and so many were put to-night which were put last year, when they were fully replied to, that I thought I was justified in telling the hon. member that I dealt fully last year with the question of public inquiries. I refer the hon. member to column 3,446 of Hansard reports of last year, volume 7. I find I said—
That is what I stated last year, and that is what I state now. I may tell the hon. member that, so far as my information goes, the holding of public inquiries in Canada has led to the most unsatisfactory results. Then the hon. member has asked me a question about Mr. Oost. I gave the answer to the hon. member for Newlands (Mr. Stuttaford), and the hon. member for Rondebosch (Mr. Close). It has nothing to do with my department.
This £500 is charged to your own vote.
Anyhow, it is done through the Minister of Railways and Harbours.
It is very strange.
The hon. member has asked me also about the item £20,000, sanitary services. This, of course, is explained by the sudden increase of the population on the Lichtenburg alluvial diggings.
Are you getting any return?
We levy sixpence on every licence, but I am taking steps to increase that to 1s.; in fact, I have given orders. The hon. member heard the speech of the hon. member for Delarey (Mr. van Hees), who is far from satisfied with the sanitary facilities we have established, and wants far more. Then the hon. member asked me about the item £30,000. premium on iron and steel. For the year ended 31st March the question is still open. I wrote a letter to say that they did not satisfy me in terms of the Act, but they are laying further facts before me, and I have not finally settled the matter. For the coming year provision is made for £30,000, so that if they produce to the satisfaction of the Minister 50,000 tons of iron and steel this year they are entitled to the bounty. Then the hon. member asked me about the threatened tax on our crayfish on the part of France. Mr. Pienaar is acting in the matter in Europe, and the Chairman of the Board of trade has had an interview with Mr. Simon, the commercial representative of the French Government here, and there are pourparlers here about a commercial convention with France. The same answer applies to the question of the hon. member for Newlands with regard to the export of grapes to Germany: there are also negotiations for a commercial convention with Germany. The hon. member for Worcester (Mr. Heatlie) seemed to think that I was not dealing seriously with this question of fruit fly. As a matter of fact, Mr. Louw has been doing his best with regard to fruit, but I must admit the force of the statement that America is proof against all the nations of the world and is taking up a determined attitude with regard to fruit and all these things.
*The hon. member for Lydenburg (Mr. Nieuwenhuize) asked me a question about the future of platinum. The position is that up to the present £100,000 worth of platinum has been produced, and the yield last month was £33,000. There is a steady advance. With regard to the request for further proclamation, this is no longer so strongly asked for as formerly. The necessary discoverer’s rights have been granted as well as mynpachts. As to the eventual state of affairs in regard to the price, the hon. member knows that the price of platinum was particularly high, viz., £25, but with the increase in production a drop in price is naturally to be expected.
I am sorry to trouble the Minister again, but I put a very important question to him as to the policy of the Government regarding future recommendations by the Board of Trade and Industries in connection with protection and the Minister replied that he did not know. When I put my question I overlooked the fact that the Minister of Finance in his budget speech said that a revision of the customs tariff was made a year ago, and the Government was not disposed to meet a further demand for increased protection except on two or three items, but felt that the time had come to investigate the industrial position and the effects of its active protectionist policy. Has the Government come to a halt, at all events, for the time being, in its policy of active high protection?
It has never been “high protection.”
Let us call it the present height of protection. It will be difficult to define the distinction between the “active” and “high” policy which prompted a revision of the tariff. What is the Board of Trade and Industries going to do while the Government is investigating, with some little trepidation, the results of its active protectionist policy? In the meantime the Board of Trade has suggested that it should go in for the positive guidance of commerce, in other words, that it should teach its grandmother how to extract meat from the egg.
The Government has issued no instructions to the board to stop making recommendations. It is competent for the board to make any recommendations it likes. Whether the Government will act upon it or not is a question for the Government. There are a good many reports and recommendations the Government has not acted upon, not because they are bad per se but because the Government has reasons, known to them, why they are not prepared to act upon them, not immediately. Take, for instance, the report on restraint of trade mentioned by the hon. member for Newlands (Mr. Stuttaford). The Government has not had the time or the opportunity as yet to go into that report. The board is unhampered and unfettered as to its recommendations and it is for the Government to act or not as they think fit on those recommendations.
There is one question I would like the Minister to answer for me. I asked him whether he would set aside one of the State mining areas under the same conditions as he has offered to the mining groups and invite the general public to subscribe the working capital. I was surprised at the Minister’s reply with regard to the maize trade between this country and Australia. It will be all in our favour if this matter is reopened. I discussed the matter with the Minister of Customs when I was in Australia, and the position is that the duty on maize at present is 7s. per sack and South Africa is included with the Argentine and other so-called foreign nations in paying this amount, whilst Great Britain has a preference of 2s. a sack. The Minister of Customs informed me there was not the slightest doubt that if our Government makes representations to the Australian Government and points out we are surely entitled to be placed on the same basis as England in regard to the preference rate they would accede to the request. It would then mean we should be getting a preference of 2s. a sack over the Argentine. We want to get protection against the Argentine, because they are competing with us in the maize markets of the world. England at present has the preference and it is no use to it because it is not growing maize. I do hope the Minister will enter into negotiations with Australia and if he does we shall get the 2s. preference.
Until recently these trade agreements and negotiations were dealt with by me, but they are now under the minister of Mines and Industries. I dealt with these matters, being connected to a certain extent with the tariff. When I was in England I discussed this question with the Prime Minister, Mr. Bruce, as I did also with the Prime Minister of New Zealand, with an idea of revising the agreements with those dominions, and I was informed by the Prime Minister that as far as maize was concerned it was a difficult matter. Their farmers are also interested in maize production, and they are, naturally, not very anxious, although at certain periods they do import large quantities, but they are not anxious to have our maize, and Mr. Bruce informed me it was a burning political question over there. We are taking a large quantity of wheat from them, and we should like to take their wheat in exchange for maize, but Australia thinks she is in a strong position, and that we would take her wheat in any case. That is what she thinks, although I do not know whether she is right or not, and if a preference were given to other countries whether the trade would not be diverted into other channels. But just now Australia thinks she is in this strong position, and she won’t give us concessions in exchange for favourable rates which we are prepared to give in regard to wheat.
She gives it to England on maize.
Yes, but England gives her other tariff concessions again. England gives her certain preferences. It is purely a matter of reciprocal concessions. That is what it amounts to. I have no doubt that the Government will be very glad to exchange a concession on wheat with Australia for a concession on our maize, and I hope my hon. friend will continue the discussions that I had in London.
Why not send a cable across to your Minister of Defence?
I do not think that would do any good. They have their difficulties, and if an opportunity again arises for resuming these negotiations the Government would act.
I think the Minister of Finance is wrong. The Australian Government retaliated on account of the withdrawal of preference by raising of duty on maize. The hon. member for Boksburg (Mr. McMenamin) is quite right. Australia never can and never will produce sufficient maize for her own requirements and South African maize is very much in demand there. On the ship by which the Parliamentary delegates travelled to Australia the 600 tons of cargo was maize. I spoke to a number of authorities while I was in Australia and they assured me that if we would make representations the matter can probably be adjusted. It is not a question of our maize being produced by black labour. Australia affords us a good market.
I am very sorry that I cannot accept the version of the hon. member for Umvoti (Mr. Deane) in regard to the matter. If he will refer to the debates in the Australian Parliament when the tariff was amended in regard to maize, he will see that it had nothing to do with our tariff changes. This black labour question was one that was urged by the Australian members. As the hon. member knows, it was only after they had withdrawn the concessions that we had, that our concessions which we had given them, lapsed. We always, for instance, had a preference on their wheat, but this lapsed after they had denounced the treaty which we had with them. The Australian Government has never given it as a reason why they altered their tariff that we had made any alterations in our tariff. That was not the reason which the Australian Prime Minister gave me when I discussed the question with him after the treaty had lapsed.
I am sorry the Minister of Mines and Industries could not give us a more definite undertaking in regard to this recommendation of the Board of Trade that they are going to regulate our business practices by “positive guidance.”
Why don’t you let sleeping dogs lie?
I am not prepared to let sleeping dogs lie—after the way that I heard the Minister discuss nationalization of gold mines with the hon. member for Boksburg (Mr. McMenamin) this afternoon. I must say I was astonished when the Minister of Mines toyed with the idea of nationalization of gold mines. He absolutely toyed with the idea instead of turning round to the hon. member for Boksburg and saying that there was no Government in this country that would dream of nationalizing gold mines, but he said there was a good deal to be said for it, and it had to have consideration and so on. I must say that it astonished me when I found that a leading Nationalist in this House would even dream of nationalizing gold mines, and if he did not dream of it I only wish he had made it much more clear to the hon. member for Boksburg that the Government at present in power, at any rate, would have nothing to do with nationalization of gold mines. I suggest that if the Minister toys with the idea of nationalizing gold mines the question of putting the members of the board of trade in charge of some of our commercial houses would be a small and uninteresting thing for them. I do wish the Minister would stand up once and for all and say this Government have no intention of interfering with individual effort in any manner in this country and then the country would be satisfied.
I am sorry I must disappoint the hon. member. I have already made the position, I want to say that the leader of the late considered that report and I cannot, therefore, express a definite opinion on the point raised by him. As to his charge against me, that I was toying with the nationalization of the gold mines and that I was dreaming of nationalization I want to say that the leader of the late Government was responsible not only for toying with the nationalization of gold mines and dreaming of them, but with providing legislation enabling the nationalization of gold mines. In the gold law of 1908 the hon. member will find provision for a State gold mine. I have taken up no attitude different from the principle laid down in that law. If I was toying the right hon. member in his time did more than toy. I refer the hon. member to my declaration of last year by which I stand.
I want to raise a question. This is rather a serious thing. We heard some time since of a proposal to negotiate with some American capitalists to make a line of railway from Postmasburg down to the main line. We have been told these negotiations have fallen through. Is it going on all right? We have been told that owing to some disagreement as to the direction the line should take, matters have fallen through. I sincerely hope that is not the case.
The Minister of Railways can deal with that.
But seeing my hon. friend is interested from the manganese point of view, perhaps he can give us some information.
I am not in a position. I am sorry.
I would like to ask the Minister what the position is in regard to the intended production of ferro manganese. The reports put on the Table of the House from various technical men all indicated that its production might be arranged at the Newcastle Blast Furnace Works. I understand that the people who are interested in the manganese deposits cannot consider the production of ferro manganese for the reason that the countries to which it is exported have a heavy import duty. If the Government enter into an agreement with the concern which controls these interests they might now provide for the future production of ferro manganese in this country. I hope the Government will when entering into the proposed agreement consider carefully the possibility of the production of ferro manganese in the near future.
The position is this: base minerals belong to the owner, as the hon. member knows, and the State has no control over manganese unless we legislate specially: but when this manganese was discovered at Postmasburg, or shortly afterwards, the Government intimated to the interested parties that they must well understand that the industrial requirements of this country would have to be satisfied before any export took place, and they readily consented. The people who had the rights over this manganese in contracting with American interests have made that reservation, but we cannot direct them to convert manganese not required for industrial purposes into ferro manganese. It is hoped it will be done, but we cannot tell them to do so.
I submit you can. This Government is one which is supposed to protect industries. Surely this country can say we are going to put a tax on the export of the raw ore, and allow the manufactured article to go out free. That may possibly happen in the future.
They will get it elsewhere.
I cannot answer that question straight off the reel, and that has to be considered. I am glad to say that the manganese has been opened up, and Dr. Hall of the Geological Department went to London and said it is so plentiful that there will be any amount to utilize for any purpose whatever, and for export.
Amendment proposed by Mr. Duncan put and negatived.
Amendments proposed by Minister of Mines and Industries put and agreed to.
Vote, as amended, put and agreed to.
On Vote 26, “Union Education,” £742,923.
I should like to draw attention to the figures of the Vote this year. There is now £742,000, an increase over last year of £93,000. That means that we are spending on higher and technical education nearly three-quarters of a million, and in addition to that we are spending on agricultural education this year £194,050, or a total of £936,773. We are only a population of 1,600,000 whites and practically every penny of this amount is spent on higher education. With the exception of £5,760 for the South African Native College all this expense is for the teaching of white people. We have four full-blown universities, of which three are teaching universities, six university colleges, eight smaller colleges and five agricultural colleges. Our universities and colleges cost £337,000 a year. Where are we going to stop? This is not a year where an increase is justified by the taking over of technical education from the provinces, so there is a normal increase of £96,000. The university colleges are aspiring to be universities and the smaller colleges are aspiring to be university colleges. One of the worst things the last Government did was to make the little college at Potchefstroom a university college. I suppose there was some little political motive at the back of it. The Cinderella of these colleges is the Huguenot University College. Could that not be amalgamated with Stellenbosch or Cape Town or are we to continue to pander to provincial or local pride in the establishment of local colleges which do not benefit higher education and are an additional expense to the taxpayers? Recently a gentleman announced that he was going to give £50,000 to establish a university at Durban, but to imagine that one can establish a brand new university for £50,000 is absurd. I see the annual vote from the Union Treasury for some of our universities goes up as far as £83,000 a year, so to think by making an individual gift of £50,000 you are encouraging the Government to start a new university is laughable. Seeing that Maritzburg has a university college I hope Durban will be content for the time being with a technical college. This inter-town competition to start university colleges results in a higher burden on the taxpayer in the end and we see the result reflected in this vote.
On the motion of Mr. G. Brown it was agreed to report progress and ask leave to sit again
House Resumed.
Progress reported; House to resume in Committee to-morrow.
The House adjourned at