SUGAR SUPPLY.

Northern Advocate, 22 August 1924, Page 5

SUGAR SUPPLY.

CHELSEA WORKS JEOPARDISED. IF DUTY IS REMOVED. PROTECTION ESSENTIAL. '(Special to "Northern Adwocate. , ') WELLINGTON, This Day. . The question of whether duty should continue to be imposed on imported .sugar in order to prevent the Colonial Sugar Company closing the Chelsea works was discussed in the House yesterday. On behalf of the Industries Committee Mr A. Harris moved that the report be tabled —"that this committee is of opinion that it is in the interests of the Dominion that the 'Chelsea sugar works should remain •open, and it is agreed that some protection to the Colonial Sugar Refining Company is necessary. It is, however, unable to arrive at a decision as to the amount of protection.''

Mr P. Fraser (Wellington Central) dxioved an amendment proposing that the Government should confer with the Sugar Company with a view to resuming control of the sugar supply and that a price should be paid to the company for refining sugar at the Chelsea works by the present process, and an allowance for the capital invested in the works, such allowance to ensure a reasonable' return on the capital, to meet depreciation and for distributing sugar throughout the Dominion. The amendment was defeated by 39 votes to 30. Mr Massey urged that the House should do the best thing in tin* circumstances and choose the lesser of two evils. Either reasonable protection had to be provided or the works would close. Mr J. A. Nash (Palmerston) moved an amendment favouring continuance of the duty of £2 18s 4d per ton, but Mr R: McKeen (Wellington South), on behalf of the Labour Party, moved another amendment that th<- duty be £1 Ps 2d. This, said Mr McKeen, would be sufficient protection to give the company as against 151a.-k labour.

Mr B. Masters (Stratford) expressed the opinion that a number of New Zealand, industries were over-protected. He said that first of all he was opposed to any duty at all being put on sugar. He did not think the price of sugar would be affected by the putting on or the taking off of the duty, because the price was controlled outside New Zealand. The consumption of sugar per year in New Zealand was 3.12,000 tons out of a world's output of J5.000,000 tons. There was a tendency in New Zealand to over-protection of a. lot of industries, so much so that one sometimes wondered if it were worth keeping the duty on. He mentioned particularly the boot, candle, timber and clothing industries. The discussion was continued till midnight, when a resolution was carried which aims at reimposing the duty <of £2 18s 4d per ton. Th.' division was very close, giving the Government a majority of only three. The voting .was as follows: — !»» *A yeS _33 Noes—3o Anderson Armstrong Bell Atmorc Bitehener ■ Bartram Bollaxd Corrigan 'Coates PerrelV Dickson, J. McC. Edie Dickson, J. S. Forbes Field Eraser Girling gaw ken Glenn Holland Guthrie Langstone . Harris Jfe Henaxe McCombs Hockly Mcllvride Hudson McKeen Hunter Macpherson Linklater Masters Lysnar Munro McLeod MonteitJi Massey Murdoch Nash O'Brien Nosworthy Parry p arr Poland Pomare Ransom Potter Savage Rhodes, R, H. Sidey Rolleston, P. J. Smith Rolleston, J. C. Sullivan Stewart Wilford Sykes Wnghi Thomson Ura Williams