SUGAR SITUATION.

Northern Advocate, 23 June 1920, Page 4

SUGAR SITUATION.

DOMINION 'S ADVANTAGE

PUBLIC SAVED £2,000,000

IN LAST THREE YEARS,

WELLINGTON, June 22

"Sugar i> cheaper in New Zealand than it is in any other part of the world," said Mr. McDonald, of the Board of Trade, in the course of a statement on the sugar position. "In the world markets, wlieiie the price has not. been controlled in the interests of consumers, the quotations have risen continuously till the/ now show a great ndvunce on the pre-war figures. The advantage enjoyed by New Zealanicrs is the direct result of agreements, made by the Board-of Trade on behalf of the Government with the Colonial Sugar Refining Company. The aggregate saving effected-, for the general public during the past three years is approximately £2,000,000 by comparison with the amount which would have been paid if the market for sugar had been free in New Zealand as el&ewhene.

"In order to make this fixation of prices for the benefit; of the public it was necessary for the Board of Trade to have control of the supplies. Indeed, such control is essential for any scheme for the satisfactory fixation of prices. While the cheapness of sugar has been a comfort to many thousands of households, the comparatively low prices have caused abnormal buying, and have thus necessitated a far-ranging system of allocation. Statistics show no shortage in the quantities of sugar supplied to Zealand. Tf prices here had been aJlowed to move upwards with the world rise the demand would have been correspondingly checked. A difficulty to-day is that, though the supply of sugar is sufficient for normal needs, it is not enough for ti.e high -demand which springs from the low price. Though the quantities which the public can buy are restricted, there is evidence throughout- New Zealand that many people i/esortcd to all manlier of ruses to build up reserve stocks. There was evidently a fear that the quantities available for Now Zealand might be much reduced, or that the price might be much increased. Therefore people tried to assure sujjplies not only for present use, but ft'so for the future. This tendency of the public to act on the principle, 'Each for himself,' has required more and more cai>e by the Board of Trade to assure a fair deal ell round. AN EQUITABLE BASIS.

"One result of the individual householder's efforts to i.-t<yck up during the past few months is that it is difficult to gauge the actual domestic consumption, which is based ordiuaxdly on the statistics of sales. No one knows how much 'deferred consumption is represented as based on sides. ,

''As sugar is cheapci in New Zealand than elsewhere, goods manufactured "from sugar in the Dominion are also cheaper than in any other country in the world. The low cost of sugar could have provided very profitable opportunities for export if freedom of action had been permitted. Necessarily the Board of Trade had to take care to arrange a fair basis of allocation for manufacturers as well as household users. The board's task has demanded a vast amount of detail work, covering all parts of the Dominion. It has had to • determine what amount of sugar should be allocated' i o various industries, and what amount should be allotted to the respective users in each industry, what shouJ d be allotted. to household use, and what , should be allotted to individual merchants and grocers, whose business it is to supply sugar for these purposes. This "work has been complicated by the irregularity and uncertainty of shipping, by interruptions in the refining of sugar, and by coal shortages.

"The people," sard Mr. McDonald, "may rest assured that, although they have not been able to get as much sugar as they probably wished to buy, 'the board's allocations have been made equitably. Occasionally one pant of the Dominion has complained that it has been in short supply for several days at a time. Such an accident is inevitable m such'a. complicated matter as the allocation and distribution of sugar, for various factors may cause an occasional hitch, but there is no preferential treatment. All districts ane served fairly and squarely in accordance with their needs and their rights.

THE NEW AGREEMENT,

"The Prime Minister has already publicly announced that the Government has entered into a new agreement with the Colonial Sugar Refining Company, whereby the raw sugar will be purchased in Fiji by the Government, refined at its expem c, and distributed throughout New Zealand. This new system will operate from July 1. It is anticipated that the quantity available will probably be in excess of that refined last year,'and the refmeny at Chelsea will be kept'going at full capacity. The necessity for allocating supplies will still exist and will be continued under the control of the Board of Trade."

In confirmation of what was said by Mr. McDonald, the following prices for Java sugar were quoted: —Fnom the beginning of the year to January 21st last white sugar was £7b per ton f.o.b. Java. A week later the price rose to £93 a ton f.0.b., and on May 19 it had reached £117 a ton f.0.0b. Java. It was estimated that the freight charges to New Zealand would probably add another £10 or £12 a ton. Recently the British Government bought 200,000 tons of Mauritus sugar at a price not stated, but the retail price in England to-day, according to the Board of Trade figures, is 1/ a lb.