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Salient. Victoria University Student Newspaper. Vol. 37, No. 7. April, 17 1974

Permanent Debt

Permanent Debt

Bilut Valley Felda Scheme is the oldest scheme in Malaya No doubt, one of the most successful. A primary jungle has been transformed into a 'virgin' rubber plantation. The virgin trees grown from good seedlings produce latex in good quantity and quality. Ordinarily, with that amount of latex produced, they could have easily earned $400 per month. But strangely enough their income did not increase.

Although their productivity could give them an ample earning of about $400 per month, the government has limited their income to the amount of $70. Any income surpassing the $70 limit is automatically expropriated by 'Felda' under the pretext that the excess sum is used for the payment of the imaginary loan.

This imaginary loan has become a bogey, it has been exposed as a manoeuvre by the government as a smoke-screen to deny the settlers title to the land. As a test case, a settler In Bilut Valley with the cooperation of others, raised enough money to pay off the imaginary loan. But 'Felda' replied with the bold answer that it was not prepared to accept the payment. Neither would it give the title of land to the settler concerned. Secondly, a settler in Kampong Awah Felda Scheme paid his debt "religiously" for three years in succession only to be told by the Felda that his debt has increased to $18,000 i.e. an increase of $4,000 from the original imaginary loan.

The active life expectancy of rubber trees is between 15—20 years. Beyond that period replanting is necessary, and for that, the settlers will be burdened with a new imaginary loan to the tune of $15,000 to $25,000. Taking the above into consideration, the settlers will be reduced into the status of cheap labour or rubber estate workers without any labour benefits (like pensions, paid holidays, injury benefits, sickness or hospital benefits).