TEA AND SUGAR

Ashburton Guardian, Volume 60, Issue 36, 22 November 1939, Page 3

TEA AND SUGAR

‘'SHORTAGE DOES NOT EXIST.” . MINISTER REPLIES TO GROCERS. (Per Press Association). WELLINGTON, November 21. “The statement emanating from a ■ meeting of grocers in Auckland allcg- > ing that a shortage of tea and sugar —something which does not exist—is • due to? Government control, is sufficii ently inaccurate to warrant some com- . ment,” said the Minister for Supply . (the Hon. D. G. Sullivan) to-day. “I ■ must repeat that there is no shortage . either of sugar or tea. It has been . demonstrated that there is ample sugar • in the country to meet all require- . merits for a considerable time. The ; consumption of sugar has increased. I repeat that the Government did not curtail supplies of sugar. I expressed appreciation recently for the assistance given by merchants in stemming the panic demand when war broke out. I again express appreciation. “On September 9 the controller issued a circular to merchants advising: them that allotments would be made on a basis of normal supplies, not because of any shortage, but because the refinery could only handle a cer tain quantity each week. That circular specifically Mated that because of the adequacy of the supply it was not intended to ration sugar. However, a panic demand arose, and to combat the tendency to board supplies the sugar company, with the concurrence of the Sugar Controller, kas, refused to fulfil orders which were placed in excess of normal requirements, and obviously in anticipation of a price rise. Apart from this, distribution has been liberalised since control has been established. This is manifest from the fact that deliveries during September and October' last were 15,248 tons, compared with 12,428 tons during the same months last year. “The question has also been raised regarding supplies of tea, and an allegation has been made that lack of .sterling lias shortened supplies. For the nine months ended September 90 the amount utilised for importation of tea into New Zealand was £661,094, compared with £619,926 for the corresponding period last year. Those figures speak for themselves. Actually there has been an increase of £41,063 in the amount made available for the importation of tea. “The allegations of Auckland grocers, and the inferences of merchants, that lack of sterling has shortened supplies of tea are not- borne out by the figures. The Government has always released sterling funds for supplies of tea to meet normal requirements. Further shipments of tea have just arrived in New' Zealand, and are waiting to be cleared. Every grocer in New Zealand knows that there was a panic demand at the outbreak of war. The rush on stocks upset the balance on the market, and temporarily shortened available stocks. Provided normal supplies are purchased, there will bo no difficulty whatsoever.” . ,