OUR SUGAR SUPPLY

Evening Star, Issue 18031, 27 July 1922, Page 2

OUR SUGAR SUPPLY

WHY.- CONTRACT WAS EXTENDED AND DUTY RETAINED. [From Our Parliamentary Reporter.] WELLINGTON, July 26._ An explanation was given by the Minis- * ter in Charge of Industries and Commerce 10-day why the duty had been retained on c sugar, and in the course of his statement * the Hon. E. P. Lee remarked that the t contract with the Colonial Sugar Company, which had already been extended 1 for six mouths, must bo further extended. He j. also hold out name hope for a reduction in , price. > <. Mr M‘Combs had criticised the Govern- ~ merit for not fulfilling its pledge made on the passing of the Tariff 13111 last session that the duty of per lb would bo re- " moved at the end of Juno last. He re- * iterated bis .statement that sugar could 1 bo ‘ obtained from Australia and landed in the “ southern ports at a little over £26 per t ,j ion; whereas the price, with duty, brought ,j ( it up to £36, The Hon. Mr Lee, in reply, stated that Mr M'Combs’s figures were grossly inaccur- r ate. The Minister pointed out that the | j duty amounted to £4 13s 4d per ton,' and if this was subtracted from the alleged £ price here it brought it to £52, not a t little over £26. (. Mr M'Combs: The price I, mentioned . was £23, f.0.b., Sydney. j. The -burden of Mr M.‘Combs's complaint v scorned to bo the retention of the duty of but the Minister emphasised that every merchant was empowered to import as much sugar a-s he liked, provided he paid duty when it originated from other than a British possession. If Air M'Comlbs’s argument was reasonable, why did not mer- 1 chants bring in sugar and undersell the Government? If this wa,s done it was only in small quantities. Java sugar was‘not as refined' as the Colonial Sugar Company’s product. The Government had k&pt the country supplied at a cheaper rate than any other country in the world. Australian sugar was 6d a lb, or had been to a very „ short time ago, while in the dominion J the price was 4jd. Australia prohibited importation altogether. The reason the ( dutv was maintained was becatigo the con-

' tract had been extended. The Government had undertaken in the contract to take sugar until June, bnt at the end of that time there was a large surplus of the un- , refined product, and surely it was not suggested that tho duly should be taken off that. ! Mr M'Combs: That is what you say ■ now. | Mr Lee went on to say that it was ira--1 porhant that for the next six months there ■ should be an -assurance that there would !bo a supply of sugar of good grade. It | was important to merchants and to the ; public generally, and the Government, recognising this, had extended the contract. ( “I have a supply in sight up till the end of November, -but I am. not sure that at the expiration of that time it may not bo necessary to extend the contract again for three months. It is important that the arrangements made should be for the benefit of the people, and they arb going to get it at a lower rate as soon aa 1 can arrange it. Tho Board of Trade kept in touch with fluctuating world’s markets, and ; there was no reason to think that but for the extension of the contract there would have been a shortage.” The Minister concluded by criticising the Labor Party for its action in supporting the plea of tho Indians in Fiji for high wages, yet at the same time advocating that cheap sugar should be,allowed into the country.