PRICE OF SUGAR

Otago Daily Times, Issue 16296, 1 February 1915, Page 3 (Supplement)

PRICE OF SUGAR

REPORT OF ROYAL COMMISSION. WELLINGTON, January 25. Mr Justice Stringer, chairman of the Royal Commission appointed under the Regulation of Trade and Commerce Act of last session, forwards to the Prime Minister a letter from the Colonial Sugar Company in reference to the price of sugar in New Zealand. The commission, Mr Justice Stringer states, is unanimously of opinion that the proposal made is faiT and reasonable, and that the assurance asked for by the company should be given by the Government. The effect of the arrangement will be : (1) To secure to the people of the dominion a sufficient supply of sugar until June 30, and at prices the maximum of which shall not increase the present ruling prices by one halfpenny on the pound; (2) it will leave the sugar markets of the world open to New Zealand so that if sugar were obtainable on more favourable terms from any source other than the company the people of New Zealand would be free to avail themselves of such source.

" It is to be noted,'' writes Mr Justice Stringer, "that the price of sugar in England at the present time is quoted as from £32 to £33. These, no doubt, may be regarded as panic prices, but in view of the fact that the supply of sugar beet from Germany and Austria, which forms a large proportion of the sugar supply, has been entirely cut off, it is highly improbable that sugar in England will fall to less than £25. In these circumstances the securing of a sufficient supply for the dominion at a maximum price of £20 seems eminently desirable, especially as the proposed arrangement will not prevent the people getting sugar cheaper elsewhere if they can. It would seem that according to Mr Astley's evidence, the company has now stocks of sugar in Auckland amounting from 13,000 to 14,000 tons, of which 8000 tons will be required to supply manufacturers of jams, confectionery, etc., with whom the company has made forward contracts. It will require an additional 29,000 tons to be brought into New Zealand in order to supply the normal demands of the dominion until the end of June. Under the arrangement proposed the company undertakes to bring in this additional quantity on the assurance of the Government that it will not be seized under the provisions of the Regulation of Trade and Commerce Act. It seems to the commission, therefore, that the people of New Zealand have nothing to lose and everything to gain by the arrangement proposed Dy the company." THE GOVERNMENT SATISFIED. WELLINGTON, January 25. "There has been a certain amount of criticism with regard to the increase in price of sujar," said the Prime Minister to a Poet reporter to-day. " This matter was considered by the Price of Food Commission, and it recommended that the Government should agree to an arrangement with the Colonial Sugar Company by which the price of sugar would not be increased beyond £20 until the 30th of June next. The result of the arrangement," said Mr Massey, "is that sugar is to-day cheaper in New Zealand than in any part of his Majesty's dominions."