SUGAR DUTY PROPOSED.

Poverty Bay Herald, Volume XLIX, Issue 16175, 11 July 1923, Page 7

SUGAR DUTY PROPOSED.

-JAVA COMPETITION WITH DO-

MINION INDUSTRY,

parliamentary Reporter.) WELLINGTON, this day

Parliament "will shortly be asked to pass a resolution imposing an import duty of £2 18s 4d oh refined sugar, this being necessary to ensure that the Colonial Sugar Company will continue operations at its Auckland works. A statement made by the Hon. W. Downie Stewart in the House yesterday showed that the proposed removal of Government control over sugar was not received with general acceptance by merchants and manufacturers, and that to some extent Government control or oversight of tho business will continue till September, 1924, when the whole position will be reviewed. Mr. Stewart reminded the House that the Government control of sugar ended in August. When he took over the portfolio of Industries and Commerce, he looked into the position which would arise at the ending of control. It was demonstrated that it would not be possible to get back entirely to pre-war conditions, because, owing to the long period of Government control, when there were coritinuous and regular supplies at a stable price, a large number of industries sprang up which became ontirely dependent on these circumstances. These included fruit preservers, jam manufacturers, and biscuit manufacturers. Merchants represented io him that if a freo market was declared there would bo chaos in these /industries; and they made such urgent requests that ho decided, before taking action, to make careful inquiries. At the same time, continued the Minister, the Colonial Sugar Company wrote to the Government stating that "it would bo impossible for them to carry on a refinery in Auckland unless a small duty was grained, which would put them on a level footing with Java competitors. Their supplies of raw sitgar from Fiji were short, and they were dependent upon importations of raw sugar from Java, on which they had to face the double cost of freight from Java, ahd the shipment of refined sugar on the New Zealand cost. The cost of refining in New Zealand was considerably higher than before the war, owing to higher wages and the greater cost of coal. They asked for a preferential duty of £4 13s 4d per ton, equal to per lb., to be turned into a protective duty of £3 per ton. Realising tho seriousness of the position if the Auckland refinery had'to close down, ho submitted to the Industries and Commerce Committee the advisability of taking evidence either in favor of keeping an open market, and trusting to outside supplies, or adopting a policy of preference. . A large number of manufacturers of jams, biscuits, chocolates, and confectionery gave evidence, also a number of merchants interested in the supply of sugar. Mr. Wilford: Anyone on behalf of the consumors?

Mr. Stewart: No, not on behalf of private consumers. The Minister added that full evidence would come' before the House, and lie believed he was right in saying that the manufacturers' evidence was unanimous. It was essential to secure a full supply of sugar of equivalent quality. They urged the Government to retain whatever duty was necessary to keep the Auckland works open. The Minister said ho recognised that the Colonial Sugar Company had a monopoly, "but," he said, "if wo cut the painter wo would go from the frying pan into the fire, because Java also works under the control of trusts, so that if the Auckland works closed down the prices of sugar in New Zealand would be fixed by*f the trust in Java." The committee decided to recommend that the Government should adhere to its previous decision to give up control over sugar in August; that raw sugar be allowed in free, and that a duty be placed on refined sugar until September 30, 1924. It also resolved that the Industries and Commerce Department should ascertain what sources of supply are available for New Zealand, and that inquiry be made into the possibility of beet sugar cultivation in New Zealand. In consequence of this decision, v tho Colonial Sugar Company was agreeable to continue their refining, a duty , of five-sixteenths of a penny to be imposed on refined sugar, which worked out at £2 18 s 4d per ton, for 12 months. The whole position would be revised in September, 1924, and this proposal was subject to the ratification of Parliament, which would shortly be asked to pass the necessary resolutions.