BEET SUGAR BRITISH PRODUCTION

Evening Post, Issue 27, 31 July 1935, Page 9

BEET SUGAR

BRITISH PRODUCTION

LIMITATION OF SUBSIDY

NEED FOR SUPPLY AGREEMENT

(Erltlsh Official Wireless.) (Received July 31, 11 a.m.)

RUGBY, July 30,

In the House of Commons today the Minister of Agriculture, Mr. Waiter Elliot, announced the decision of the Government as to the future of the sugar beet industry.

The Government had concluded that it was desirable on agricultural grounds to continue to assist the industry without any limitation of period, he said, but it was necessary to ■ set a limit to the volume of directly-assisted production. The limit would be the equivalent of 560,000 tons of white sugar—the estimated produce of 1035. An independent sugar Commission would be entrusted with such powers in relation to the sugar beet industry as might be necessary for the carrying out of the Government's policy.

It had been decided -to adopt the recommendations of the committee of inquiry that beet-sugar factory companies should be amalgamated in a single corporation.

The financial arrangements proposed were based on the assumption that as from April 1, 1036, there would be a transitional period of not more than five years. During this period assistance would be given upon a diminishing scale based upon certain standard levels for the world price of sugar. Subsequently the basic rate of assistance would be subject to review at triennial intervals. For the purpose of immediate sugar policy the Government did not. propose to " make . any change in the details of the Customs, excise, or subsidy scales. INTERNATIONAL SITUATION. The Government had also reviewed the international sugar situation. It believed that -the various producing countries could only set their sugar industries upon an economic basis by means of an international agreement for an adjustment .of supplies to the requirements of the world markets, State assistance being diminished as the market conditions improved. It proposed to invite the Governments of the sugar-exporting Dominions and colonies to examine with them the possibility of a joint endeavour to re-, "open international negotiations if there were a reasonable prospect of a successful issue.