asked the Secretary of State for the Colonies what agreement was reached with the Nigerian tin companies governing the price of tin; and whether an Excess Profit Tax is to be instituted in Nigeria?
As the reply to the first part of the Question is rather long, I will, with my hon. Friend's permission, circulate it in the OFFICIAL REPORT. With regard to the second part of the Question, it is not at present proposed to introduce an Excess Profits Tax in Nigeria, owing to the absence of such a tax in the other three West African Colonies and the difficulties in securing the services of officers, with the necessary experience of dealing with this form of taxation.
Do I understand that the price of tin is included in the reply in the OFFICIAL REPORT?
Not the actual price, although I will get that for the hon. Gentleman. It shows the methods adopted for contracting with various types of producers.
Following is the reply to the first part of the Question.
While the details of the proposed agreement with the main Nigerian tin producers are still under discussion, tin concentrates are being supplied by those producers on the basis of the offer made by the Ministry of Supply to purchase on direct contracts at cost of production plus the profit per ton realised in a pre-war period—either the year ended 31st August, 1939, or the average of the three years ended on that date, at the option of the producers. Where—as with certain smaller producers—such a direct contract is inapplicable, the Ministry of Supply is offering to buy through the Nigerian Supply Board at a price which is approximately the average to be realised by producers on direct costed contracts.