SUGAR CONTRACT

Evening Post, Volume CII, Issue 14, 16 July 1921, Page 6

SUGAR CONTRACT

THE PRESENT POSITION

NO GOVERNMENT MONOPOLY.

There have been various statements in the press lately with reference to the Government control of sugar, and protests have been made by some Chambers of Commerce against the renewal of the Government contract. Interviewed by a Post reporter to-day, the Minister for Internal Affairs and Customs (the Hon. W. Downie Stewart) said that this was not a, question for his Department, but he was willing to give what information he could, as the Minister in charge of the Board of Trade (the Hon. E. P. lie©) was away from New Zealand, and the Acting-Minister (the Hon. G. J. Anderson) was in hospital. What the public wished to have was something definite as to the position of the sugar supply. "Two points that can be made quite clear," said the Minister, "are: First, that the Government has entered into a contract with the Colonial Sugar Company till June, 1922; second", that the Government has taken no steps to protect its contract by seeking to exclude supplies from other sources."

The Minister, added that he could not make the terms of the contract public, as.the details were still subject to negotiation, but the general lines of the previous contract were followed. The Government was committed to the contract before the sudden change took place in the condition of the sugar market.

It was frankly admitted by the Minister that, the altered condition of the market 'might make this contract unprofitable, but that depended upon the quantities available and the prices during the current year. A loss would have to be borne by the country as a whole; but the public should not forget that for some years New Zealand, in consequence of the action taken by the Government, had been very fortunate in th© matter of sugar supply. "The alternative to the present position would have been for the Government to protect its contract by prohibiting the importation of sugar outside the contract. I agree with those who claim that there are object/ions to Government control; for one reason that, when the market turns against the Government and a loss ensues, past benefits: are forgotten and are not set off against any possible losse3. But at any rate the Government came to the best conclusion it could on the facia before it at tlie time and on the advice of the Board of Trade. When a new contract was decided upon, it was of the utmost importance that an adequate supply of sugar of good quality at a price that seemed reasonable should be assured for the year. In the meantime, there is no need for any one to go short of sugar, as it is now obtainable through ordinary trade channels in any quantity'desired."