Company Replies To Criticism

Press, Volume XCV, Issue 28314, 27 June 1957, Page 14

Company Replies To Criticism

(New Zealand Press Association) AUCKLAND, June 26. Trading in New Zealand accounted for only £6.5m of the average annual sales revenue of £lo3m of the Colonial Sugar Refining Company, Ltd., over the last three years, says a circular to distributors from the New Zealand manager of the company (Mr A. C. Isaacs).

The circular has been issued in reply tn recent criticism linking the company’s record profit and bonus issue with the sugar price increase in New Zealand. “Not £1 of the increase in the over-all profit recently announced comes from the company’s refining business in New Zealand,’’ says Mr Isaacs. “The sources of the share issue are cash previously subscribed by shareholders (including the New Zealand shareholders) and a revaluation of assets in Fiji. “Neither New Zealand nor the Colonial Sugar Company has any control over world prices for raw sugar, says the circular. Most of New Zealand’s raw sugar is at present being bought from Queensland where sugar cane is grown by 9000 independent cane farmers and is milled at 31 mills of which the company owns four. The cane in Fiji is grown by 11,500 farmers and milled by the company.

“Colonial Sugar is partly owned in New Zealand with 21 per cent, of the shareholders owning 11 per cent, of the company, residing in the Dominion. “It would be incorrect, therefore, says the circular, to suggest that Colonial Sugar’s business in New Zealand is an instance of absentee ownership although even if absentee ownership did apply it would not be relevant to the question of a reasonable price of sugar to New Zealand consumers.”