THE SUGAR QUESTION

Otago Witness, Issue 3618, 17 July 1923, Page 8

THE SUGAR QUESTION

A PROTECTIVE DUTY. OPINIONS OF AIERCHANTS. WELLINGTON, July 12. Merchants here express different opinions on the question of a protective duty on sugar to keep the New Zealand refinery going. Some say the New Zealand market should be free, and the Government should not dictate as to tile quality of the sugar. One merchant states that the possibility of the works at Auckland being closed was all bluff, and that- the Sugar Company’s balance sheets showed that it would not abandon "the New Zealand market. It is understood, however, in the best-informed circles that this is not the case, and that the actual figures in connection with the Auckland works show that if the company had to compete against Java it would certainly not pay it to keep the Auckland refinery going. Even the Labour men in Parliament, much as they hate the “sugar trust,” will probably agree that unless tho Sugar Company received some consideration its works would have to bo closed down, and between 300 and 400 men would be thrown out of employment. Tho actual position is probably best put in the words of one Wellington merchant, who says: “If the company closes we should ho at the mercy of the East, with fluctuating markets. As it is tho 4 per cent, which we are allow'ed by the Sugar Company pays us, for we can get the sugar when we want it, whereas we would have to store Java sugar. The Colonial Sugar Company has a monopoly, hut is it not better to have that monopoly under our own Government control rather than be under a monopoly outside with no control? We are getting what, we want from our monopoly, and it certainly deserves protection. The Government is decided on that. With the East there would be delayed deliveries. There is now, and you never know where you are with those Eastern markets. It needs a specialist to buy in them. We merchants have not the requisite knowledge of the sugar trade to buy in the East, whereas the Colonial Sugar Company has, and it buys in huge lines, while we merchants would have to buy in little lots. Who do you think can make the best deal ” The general opinion seems to he that Air Downie Stewart has made a good arrangement with the company and that Parliament will ratify it.