SUGAR SUPPLIES

Greymouth Evening Star, 11 July 1923, Page 6

SUGAR SUPPLIES

A PROPOSED DUTY. (.Special to “Star.”) WELLINGTON, July 10. An important statement regarding sugar was made in the House today, by Mr. Downie Stewart, who indicated tirni the J louse will shortly be asked to pass a resolution imposing a duty of £2 18s 4d to relined sugar, to ensure the Colonial Sugar Relining Company keeping its works going at Auckland. Government control was proposed to be removed at the end ol August, but some merchants and manufacturers had wished it to be continued. Consequently, the new duty if approved by the House would remain in force until September, 1924.. Mr. Stewart said that lie had placed the whole matter as to whai would happen after decontrol before Industries and Commerce Committees, and evidence had been given that it would not be possible to get back entirely to pre-war conditions, owing to the long period of Government control, during which many new industries had sprung up. These included fruit preserves, jam manufacturers, and biscuit manufacturers. The merchants had. represented that if control were removed there would be chaos in these industries. The Colonial Sugar Company had written to the Government stating that it would be nnpostibie to carry on the Auckland refinery unless a. small duly were granted, io

put them on a level with the Java sugar competitors. Supplies of raw sugar from Fiji were short, ami they were dependent on importations of raw' sugar from Java, on which they had to face double cost. Owing to the higher wages, the cost, of refining was considerably higher than before the war. Coal was also dearer. They asked that a preferential duty of £4 13s 4d to equal j>d per lb., be turned into a protective duty of £3 per ton. He had, on realising the seriousness of the position, and after investigation of the Company's books, submitted the matter io the Industries and Commerce Committee to take evidence, either in favour of keeping an open market and trusting to outside supplies, or adopting a p.plicy of preference. He believed be was right in saying that the manufacturers were unanimous that it was essential to secure a full supply of sugar, either from Auckland, or to se-

cure an equivalent quantity elsewhere. The Committee came to certain conclusions. One was that the Government should adhere to its previous decision to give up control on August, and it. "was also decided to recommend that raw sugar be allowed in free, and that a duty be placed on relined sugar until September 30, 1924. The committee also passed other resolutions, one being that the Department of Industries ami Commerce should inquire into the possibility of beet sugar cultivation. In consequence of the decision of the Colonial Sugar Company to continue refining a duty of five-sixteenths of a penny a lb. would be imposed on refined sugar, which worked out at. £2 les 4d a ton. The whole proposal would be subject to ratification by Parliament.