THE SUGAR QUESTION.

Press, Volume LVI, Issue 16882, 9 July 1920, Page 4

THE SUGAR QUESTION.

STATEMENT BY MR MASSEY. (srECJAL TO "THE PRESS. ') WELLINGTON, July S. In tho Ho us; of Representatives to-day, Mr AVitty a'sked if the CO,C>OO tons of sugar, available in the mills in Fiji in March la-st, was to be charged at tho increased rate. The Sugar Co. people told memoirs when they wero there that they waut«l to get rid of tliL; sugar, but had no vessels. Mr Mastey replied that New Zealand had go; the whole quantity of sugar contracted tor prior to June flOth. 'It was ■ not a question ot getting tho whole Fiji crop: it was a question of getting oidy a certain quantity. | The- Sugar Co. could have sold their sugar |to other people, Canada, for instance at a much higher price* He (ilr Ma«.ey) had | hesitated for some time to make the agreement with ths Sugar Co. on account of tho \ery serious rise in price, as compared with fw[■ or five years ago, but the indications w-eie that there would be a sugar ohorta.ge all over the world, and that there would bo a big rise in. price. He, however, consulted Cabinet, and they had tlw advantage of-meet-ing a rcpres3utat ; vo of the- company, who came- ever from Australia. Tliey dccided to puicltoso 0.5,000 tons, and very' soou afterward v tho price went tin, and tho company was not. anxious that X-3w Zealand should buy, because they could get more than New Zealand had paid. Australia, had not enough ."iigur and was importing at a cost of over a ton. If Nc.v Zealand had not bought at that time it would have had to pay a much hicrhor price now. Mr Holland: Tho Sugar Co. i 3 simply a robbery concern. Mr said that nevertheless New Zenland had no orension to complain of its. treatment by the Sugar Co. They had got tho cheapest sugar in the world from them. In any case, the Sugar Co. was outside New Zealand, and could not lx> continued by the. Now Zealand Government. A -rjfficient sugar supply would be available for New Zealand. When the present Minister of External Affq.ii'? was recently in Fiji an official had told him and others that they could have sold their *ugar at that time in Vancouver for £70 a. ton, a.nd he took off his hat to the man >\ho made the New Zealand deal. Ho did not know who ho was, but he was a splendid businessman. 1 rrcspcctivo of this, Uk> Government had bought, a. or tain" quantity up lo Juno 30th. That had been delivered and paid for at £23 los n ton, and afterwards we had to pay sn increased price. Replying to Mr Malcolm, tho Prime Minister said enquiries made by the Board of Trade had shown that there was practically no sugar in stock in New Zealand on Juno 30th, consequently there wao little prospect of profiteering on sugar bought prior to the reccnt rise in price. He was satisfied that no hoarding had been going, on in the Dominion.

THE PRICE, OF SWEETS. (STKCIAL TO "THE PRESS.") AUCKLAND, July 8.lly far the most important f?.iturc .ls effecting trade this week is the increase by 100 per cent, in the cost of sugar, which is, naturally, causing' o general revision o£ costs iu all lines which contain sugar. Quite a feature of the position is the absurdity of the margin allowed between cost and selling' price, especially to the email retailer who i« compelled to purchase ex store at cost for 1A of 510 per cwt., and to sell at Cd per lb. This decision is being very unfavourably viewed by retailors, and an endeavour will be made to secure ■ more sympathetic treatment. The- margin allowed, it is stated, will be easily swallowed by overhead expenses, leaving the retailer with a losing- pro'pesi- | tien. "With the cost of paper bags at yd to lOd per Jb. twine .at Cs' Cd to 4s per lb. n.nd wages, rent 3, and "taxes at the highest level ever known to the trade, it is only natural retailers aj-e annoyed. The margin roughly represents 10 per cent, between the cost .and the retail price and it is generally vccognised it is impossible to retail under 15 per cent., and working expenses, in eome instances, are mentioned, as running to 25 2'er cent. All indications point to an increase that will range from 35 to CO per cent, in the retail cost of sweets mad« locally. "This is going to have a. cruel effect on dozens of the keepers of small eweet. «hops," eaid one business man. "Many of these people earn their living by their little shoo 3 that do a good deal of business in small sales., Xo longer will the threepenny bag of lollies be waiting to seduce the heart of the small boy going into a picture show. There will soon be nothing except rubbish for anything less t):an sixpence, and, as a matter of cold, hard fact,, even to-day a very small quantity of decent sweets or candies can be purchased even for a chilling."