OVERDRAFT FOR SUGAR

Press, Volume CII, Issue 30192, 25 July 1963, Page 14

OVERDRAFT FOR SUGAR

Terms Given To House

(N.Z. Press Association) WELLINGTON. July 24.

The terms of the agreement between the Government and the New Zealand Sugar Company for the stabilisation of the retail price of sugar were given in Parliament at question time today by the Minister of Industries anfi Commerce (Mr Marshall).

He had been asked by Mr R. J Tizard (Opposition, Otahuhu) to define the circumstances under which the company had the right to increase the price of sugar under the agreement. Mr Marshall said the agreement provided for a review of the scheme by the Government and the company at the expiration of one year, or when, and if, the overdraft reached £2.5 million, whichever was the earlier.

The company could increase the price of sugar to a reasonable extent to recoup the overdraft balance over a maximum period of two years. But before it took such action, the company was required to give the Government one month’s notice

After the Speaker (Mr Algie) had ruled against a point of order by Mr N. E. Kirk (Opposition. Lyttelton) in which he suggested that Standing Orders required the agreement to be tabled in the House, the Prime Minister. Mr Holyoake, said: “Let them have it.” Mr Marshall: I will do so.