SUGAR STOCKS

New Zealand Herald, Volume LXXVI, Issue 23504, 15 November 1939, Page 12

SUGAR STOCKS

QUESTION OF CONTROL REPLY TO THE MINISTER A STATEMENT CHALLENGED "Mr. Sullivan has no justification for placing the blame for tho rationing of sugar on merchants," said a large distributor yesterday in referring to a stateniQjit by the .Minister of Supply, tho Hon. D. G. Sullivan, on complaints from the farming community that they could not purchase sugar in bulk. "It is hard to understand his assertion that the Government had not rationed the commodity once since, hostilities commenced.

"Tho actual position is that tho producing company is supplying tho trade under tho direction of tho Government Sugar Controller, Mr. 13. L. Dallard. Because of complaints arrangements were recently made for tho wholosalo trade to be given an incronso in its allocation of 5 per cent for tho present month. In his claim that tho Government is not rationing sugar, Mr. Sullivan is splitting straws." Use of Unrefined Sugar This distributor asked why unrefined sugar should not bo released, as was done in the Great War. Raw sugar was admittedly not suitable for all purposes. It was then proved by exporienco that it was unsuitable for jammaking or preserves because of fermentation. But it was suitable for porridgo and other sweetening purposes, and its rolease would ease the position.

Tho pj-osent trouble was not because the sugar manufacturing company had inadequate stocks; the reverse was tho case. Tho public had become convinced that there was a shortage, and this had caused a run on supplies of refined sugar. The capacity of tho company to rofiuo sugar from its raw stocks was limited, and so it had been unable to satisfy tho abnormal demands of tho public.

Solving the Difficulty The suggested solution of the difficulty made by the distributor was either to release supplies of raw sugar or to market extra supplies of refined sugar from the reserves the company always carried. Such procedure would allay public anxieties regarding supplies and load to a speedy restoration of the situation to normal. An example of tho success of similar proceduro was that of flour, he said. The public had been over-buying because of fears of scarcity. Three weeks ago flour was mado practically free of restrictions. Once tho public saw it could obtain the supplies it wanted, its demands cased and tho situation with flour was now normal again. In' trading circles a criticism freely expressed was that the Government's action in appointing controllers of various commodities had alarmed the public and caused a run on supplies. It was questionable whether at the outset most of tho appointments had been warranted.