SUGAR DUTY.

Manawatu Times, Volume XLVI, Issue 2693, 11 July 1923, Page 5

SUGAR DUTY.

5-16 OF A PENNY A POUND TO PROTECT LOCAL MANUFACTURERS. AND EX SURE SUPPLIES. [Per Press Association.] WEI/LTNGTOX, Last Night. An important statement regarding sugar was made in the House to-day by Mr. Downie Stewart, who indicated that th 0 House would shortly be asked to pass a resolution imposing a duty of £2 18/4 a ton on refined suga* to ensure that the Colonial Sugar Refining Company should keep its works going at Auckland. Government control, if was proposed should be removed at the end of 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 find he had placed the whole matter a;* to what would happen after de-control before the Industries and Commerce Committee, and evidenco had been given. It would not bei 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 preservers, ,iam manufacturers and biscuit manufacturers. 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 impossible to carry on the Auckland refinery unless a small duty were granted to put if on a level with Java sugar Supplies of raw sugar from Fiji were short and the company was dependent on importations of raw sugar from Java, on which it had to face the double cos* of freight from Java and the shipment- or ~ the refined sugar on the New Zealand coast. Owing to higher wages, the cost of refining was considerably higher than before the war. Coal was also dearer. The company asked that a preferential duty of £4 18/4 a ton, equal to &d. a lb., be turned into a protective duty of £3 a ton. The Minister said he had, on realising the seriousness of the position after investigation of the company's books, submitted the matter to the Industries and Commerce Committee to take evidenc either in favour of keeping an open market 1 an d trusting to outside supplies, or adopting a policy of preference. He believed he was right in saying that the manufacturers were unanimous that it was essential to secure a full supply of sugar from Auckland or an equivalent quality elsewhere. The Committee came to certain conclusions. One was that the Government should adhere to its previous decision and give Up control in August, and it also decided to recommend that raw sugar be allowed in free, and that a duty be placed on refined sugar until September 30, 1024. The Committee also passed other resolutions, one being that the Department of Industries and Commerce .should inquire into the possibility of beet sugar cultivation.

In consequence of the decision, the Colonial Sugar Company is continuing- refining. A duty of five-sixteenths of a penny a. lb. would b G imposed on refined sugar, which worked out at £2 18/4 a ton, to be operativo for 12 months. The whole proposal was subject to the ratification of Parliament.