Sugar Stock Figures Detailed To House

Press, Volume CIII, Issue 30578, 22 October 1964, Page 3

Sugar Stock Figures Detailed To House

(New Zealand Press Association) WELLINGTON, October 21. The New Zealand Sugar Company was holding 34,770 tons of “high-cost” sugar at the time the overdraft in the Sugar Stabilisation Account was repaid, the Minister of Industries and Commerce (Mr Marshall) told Parliament today.

He said this amount must be sold at Is 3d a pound retail price to recover costs.

Replying to Mr H. L. J. May (Opp., Porirua), Mr Marshall said the price of sugar was subject to price control and all the costs were closely scnitinised. “To reduce the price of sugar now would require a sugar subsidy of over £1.3 million to give a retail price of 8)d a pound or over £930,000 to give a retail price of lOd a pound,” he said. The Leader of the Opposition, Mr Nordmeyer: What stocks of “low-price” sugar were held by the company

when the price of sugar was first increased?” Mr Marshall said the company then held 26,788 tons of sugar. This amount was revalued and had the effect of reducing the overdraft by over £1 million. Mr Nordmeyer then asked if the company bought the whole of its stocks from its parent company, the Colonial Sugar Refining Company. Mr Marshall replied that the company bought its sugar from a variety of sources and at the world market price. As far as he knew, no sugar was bought directly from the Colonial Sugar Company. Replying to a further question from Mr W. W. Freer (Opp., Mount Albert) he said about 10,000 tons of sugar a month was sold in New Zealand. although this amount did vary. Yesterday, Mr Nordmeyer moved a notice of motion that the House deplore the action of the Government in refusing to reduce the price of sugar notwithstanding the fact that the overdraft in the sugar account had now been paid off.