PRICE OF SUGAR

Ashburton Guardian, Volume 68, Issue 139, 24 March 1948, Page 4

PRICE OF SUGAR

Application for Increase EFFECT ON OTHER COMMODITIES CP.A.) WELLINGTON, March 23. An application by the Colonial Sugar Refining Company, Australia, for an increase in the price of sugar came before the Price Tribunal to-day. The tribunal consisted of Judge Hunter and Messrs P. Holloway and L. Munro. The in- \ crease asked for would mean a rise of about Id a pound retail for sugar and increased prices for commodities with sugar in their ingredients.

The company’s application is for an increase of £8 3s 2d a ton in the price of refined sugar and a corresponding increase in the price of golden syrup and treacle. Mr H. P. Richmond, the company’s advocate, said the application was based on the increased cost of raw sugar since January 1 last, a further increase which was likely to be imposed with retrospective effect to that date, increases in raw -sugar, freight rates, handling delays at the port of Auckland, increases in landing, manufacturing, and distribution expenses, the effect of the general wage increase since October 1, and a small adjustment to restore the company’s profit margin before taxation to the aiqount agreed with the Government in 1939 —a sum equal to 3s lOd a ton. Evidence in support of the claims was given by the New Zealand manager of the company (Mr J. P. Wildman), a Sydney auditor (Mr Jackett) and the administrative officer of the company in Sydney (Mr A. C. Isaacs).

Labour Federation’s Opposition

On behalf of the Federation of Labour Mrs D. M. Sorrell, the federation’s economic research officer, opposed an increase in price. Notice of the hearing of the application had been too short, she said, for the federation to obtain the necessary details of the company’s financial position, but published re-suits of the company’s operation showed that it had made profits of £881,136 in 1945, £887,298 in 1946, and £1,163,473 in 1947, and had paid dividends of 8 per cent., 3 per cent., and 85 per cent, in those years on all operations. At the same time the wage rates paid by the company to employees in Auckland compared unfavourably with other wage rates in New Zealand.

• The federation was also disturbed at the effect the price rise would have on the cost of lfving. It would affect a number of foodstuffs.

In the federation’s opinion, -said Mrs Sorrell, the company could absorb the added costs.

For the Price Control Division, Mr J. P. Lewin said the division provisionally accepted the company’s figures for the increased price of raw sugar by £N.Z.S 13s 4d a ton, but it was of the opinion that the claim for increased freights of 12s 6d (New Zealand currency) a ton was hypothetical. It contended that the company’s fig-ure-3' for wage costs were over estimated by Id a ton, as were landing expenses.

Mr Lewin said that the granting of the full claims of the company would be equivalent to an increase of id per lb in the cost of 1A sugar to the public. The division could accept a total increased cost of only £6 17s 5d a ton, with 13s additional subject so discussion.