SUGAR SUPPLIES

Dominion, Volume 15, Issue 234, 29 June 1922, Page 5

SUGAR SUPPLIES

Sir, —During the tariff debate in the House of Representatives in November last the Government plainly stated that the duty of Jd. per pound to be imposed on importations of sugar was not for the purpose of protection or revenue, but solely for' the purpose of safeguarding a contract which had been entered into by the Government with the C.S.R. Company, Limited. It was also stated that the contract would not expire until June, 1922, and that if the duty was not imposed the Government would make a heavy loss on the contract. Since then the Minister mi' Industries and Commerce has informed the public through the 1 ress that the contract would expire on July 31, and as it was believed that the Fiji output would barely exceed 50 per cent, of normal, arrangements had been made to meet the Dominion s needs until the end of October.

In a recent issue of your paper appears a statement confirming the expected shortage in the Fiji output, and advice to the effect that the Government had made a supplementary purchase of 12,000 tons under the existing contract, so as to ensure supplies until November next. Although not mentioned, it can no doubt be taken for granted that the.price to be paid for the supplementary quantity will be the same as that which required a Customs duty to protect it from competition. Whilst fully appreciating the Government's action, it is difficult to understate the actual necessity for a continuation of Government interference in regard to sugar business as market conditions make it apparent that the C.S.R. Company could not sell its product to better advantage elsewhere, and war conditions being over, the world’s markets are open to New Zealand for sugar as well as all other commodities. From the published statements it appears certain that sooner or later this Dominion will have to import sugar from places other than Fiji to meet its requirements, so the sooner the business community is ifiado aware of the Government's intentions in regard to sugar business the better, as hurried buying at the last moment usually results in having to pay increased prices. Under the circumstances, it would greatly assist matters if the Government would now definitely state when that provisional duty on sugar is going to be removed, al,so whether it is its intention to leave the sugar business alone, as such will enable Dominion merchants to know their position. As Parliament assembles within the next few days, it is to bo hoped the matter will be promptly dealt with.—l am, etc., MERCHANT.