THE PRICE OF SUGAR

Dominion, Volume 8, Issue 2368, 26 January 1915, Page 7

THE PRICE OF SUGAR

MAXffIM FIXED AMPLE SUPPLY ASSURED The prioe of sugar has been the subject of a good deal of comment of late, and opponents of the Government have declared with much enow of feeling that the Government ought not any longer to allow our population to bo "exploited." The rollowmg lettor to thei-rime Minister from Mr. Justice Stringer, chairman of the Boyal Commission pointed under the Hegulation of Trade and Commerce Act,'should convince most people that tiie Government has not been idle, and that the Colonial Sugar Company is not disposed to .be exacting:— . "I enclose a letter reoeived from Mr. A. Astley, the representative of the Colonial Sugar Company, regarding the supply of sugar to the Dominion of New Zealand. The proposal contained in this letter is the outcome of evidence given 'before the Commission, copy of which I enclose herewith. The Commission ' desires mo to say that they are un&nimouslj; of opinion that the proposal made is fair and reasonable, and that'the assurance asked for by the company shoold be given'by the Government. "The effect of the arrangement will be: (1) to secure to the people ' of this Dominion a sufficient supply of sugar until June 80 next, and at prices the maximum of which' would not iuorease the ruling prioe by one halfpenny on the pound. : . (2) It will leave the sugar markets of the world open to New Zealand, so that if sugar were obtainable on more favourable terms from any source other than the oompany, the people of New Zealand, would' be free to avail themselves of such source. "It is to bo noted that the price of sugar in England at the present time is quoted as from £32 to £33. These no doubt .may be regarded as panic prices, but in view of the fact that the supply of sugar beet from Germany and Austria (which forms a large proportion of the BUgar supply) has been entirely cut ( off, it is highly improbable thaH sugar in" England will fall to less than £25.. In these circumstances the securing of a sufficient supply for the Dominion at a maximum price of £20 seems eminently desirable, especially as the proposed arrangement will not prevent the people getting sugar cheaper elsewhere if they can. "It will seem that, according to Mr. Astloy's evidence, the company has now stocks of sugar in Auckland amounting to from 13,000 to 14,000 tons, . of which 8000 tons will be required to supply manufacturers of jams, confectionery, etc., with whom the company has made forward contracts. It will require an additional 29,000 tons to be brought into New Zealand in order to supply the normal demands of the Dominion until the end' of J.une next. Under the arrangement proposed, the company undertakes to brins in this • additional quantity on the as3uranoe of the Government that it will not be seized under the provisions of the Iteeulation of Trade and Commerce Act, 1914. It seems to *th'e Commission, therefore, that the people of New Zealand have nothing to lose, and everything to gain by the arrangement proposed'by the company."