JAVA SUGAR QUESTION.

Northern Advocate, 21 August 1924, Page 6

JAVA SUGAR QUESTION.

PRODUCTION TIIE FACTOR. DOMINION SHOULD BENEFIT. Some interesting particulars concerning the present position in regard to sugar were given to a "Times" reporter by the buying representative of one of the three principal indenting firms in the Dominion. He stated that there is a proper Board of Control in Java known as the V.I.S.P. The commission agents in Java all buy at the same price from the board of control, and cable their agents in various parts of the world from time to time. This information comes to New Zealand indenting firms, and they sell to merchants, manufacturing confectioners and brewers. In regard to Java sugar manufacturing confectioners were the largest users, ordering hundreds of tons at a time, and provided that thov could land it in New Zealand at a slight advantage, preferred it to the sugar refined in Auckland. Confectioners have used Java sugar for many years, and import it when the market is favourable, owing to its quality. When there is 110 advantage in buying Java sugar they buy Auckland sugar in small

I quantities in order to save storage, which is a big when hundreds of tons are involved, and which ties up a large sum of money. It had been stated that Java sugar was not refined, but merchants would not handle it. nor would the public buy it if not equal in'quality to the sugar refined by the Colonial Sugar Refinery. The duty would automatically be lifted at the end of September, and although the C.S.R. had said they would close down their works in Auckland. they had signally failed to show that the removal of the duty would bring that about. No commission had been appointed to look, into the matteer, and only the point of view of the C.S.R, had been put forward with the statement that they would close down if the duty was lifted. The importers' point of view is that the C.S.R. is making additional profit to tlie extent of clie amount of fluty, which is five-sixteonlhs of a penny per lb., or £2 ISs 4d per ton. A big factor which had been overlooked was the enormous increase in sugar production all over the world. Even a country like Russia is fast developing its beet industry and producing its own sugar instead of importing, so re- j leasing a huge quantity for the other j

markets of the world. England is j growing boot extensively in East Ang- ! lia and intends to erect six refining j works, and when i hese are ready the I Old Country will not lie so largely 011 ( the world markets. Therefore, it was ' asked, why should not New Zealand j benefit by the increased production, j 'id the lower rates ruling. If the j ] r-..tec-five tariff is maintained the | .. 'ohiinlon will not I.i.rfH li:e droo J in the world's sugar parity. Some of the chambers of commerce * in the Dominion had .stated that mereliants were chary about importing Java sugar owing to Ihe risk of sweat on the voyage. If that was so why need the C.S.R. worry about importations at all? "Finally," concluded the speaker, "if the duty is lifted, the public will get the bent fit of it immediately, as they did when 3d was taken off the tea duty. Anyway, it is quite likely that the Government will decline to reimpose the duty for more than enc Reform member lias stated that he will vote against it."