AUSTRALIAN SUGAR.

New Zealand Herald, Volume LXVII, Issue 20628, 29 July 1930, Page 8

AUSTRALIAN SUGAR.

The sugar producers of Queensland have asked the Federal Prime Minister to renew the agreement by which they are protected from direct foreign competition, and are enabled to obtain from the home consumer a price that will allow the industry to continue on its present basis. They arc early in the field, for the present, arrangement is not due to expire until August 1, 1031. It dates back to 19-2.1, when an agreement was made by the Commonwealth and Queensland Governments by which the embargo on the. importation of foreign sugar produced by coloured labour—which means virtually all foreign cane sugar—was made to run until 1928 on condition that a Sugar Board, to handle output, free from political control, was set up. The price to be paid for raw sugar for home consumption was fixed at £2C 10s. less £l to cover expenses of the board and to allow rebates to certain consumers. Later this agreement; was extended for another three years. The way the system works is that grower and miller are. given £26 10s as the, price of unrefined sugar, on which the cost of the refined article is fixed. The .£2(3 10s. which rules until 1031, means a wholesale price of £37 0s Sd for refined sugar, and a retail price of bid per lb. The exported surplus must, however, be, sold at competitive prices. Consequently, when realisation adjustments have been made, the actual pay-out of the Sugar Board is much lower. It is literally true that the greater the proportionate surplus for export, the smaller the actual return per ton for raw sugar. For instance, in 1925-20 50 per cent, of the production was consumed in Australia and the balance, which was exported, yielded a net. return of £ll 5 s fid. making the average price for .'he whole crop £lO 10s 7d pct":t. }:> i;»27-2H Australia took nearly k! :,■']■ x• • 111. of the entire output at. :'i.' iife. For that, exported

: slightly better price of £l2 lis Id w::;> received, and the average net r; turn for the crop was £22 Ms Od per ton. It has been calculated that in 1927 the excess cost to Australia for refined sugar, compared with the rates ruling in New Zealand. was £1,000,000. because of the embargo and the. fixed rate for unrefined. At the time when £2(i ]ok was assured the Australian producer for raw sugar consumed at home it could be bought in Cuba for £9. In these circumstances it. is not surprising to find the Queensland industry anxious to see the system continued, instead of giving way to ordinary tariff protection. The figures also show what it costs to preserve the canolields of Queensland and New South ales for white labour.