WEST INDIAN SUGAR

Poverty Bay Herald, Volume LV, Issue 17179, 8 February 1930, Page 5

WEST INDIAN SUGAR

INDUSTRY’S BAD STATE WORLD OVERPRODUCTION EFFECT OF TARIFFS. (British Official Wireless.i Rec. 10 a.m. Rugbv, I'eb. 7. In the House of Lords, Lord Elibank, Conservative, called attention to the serious state of the British West Indian sugar industry, and pressed for early publication of the report of the West Indian Sugar Commission, which recently returned from Hie West Indies. Lord Elibank said it was perfectly clear that sugar was not being sold to-day under free trade conditions. The overproduction of sugar which existed to-day, and which was being loaded upon tho markets of the world, was very largely due to high protective tariffs and subsidies. He suggested that Mr. Philip Snowden, Chancellor of the Exchequer, should not remove or reduce the sugar duties this year, and should continue exerting preferential duties. Lord Oliver, a Laborite. who was chairman of iho West- Indian Sugar Commission, supported Lord Klibank’s appeal. He believed that when Mr. Snowden in July last expressed the intention to sweep away all duties on foodstuffs he was not fully acquainted with tho situation. The commission had come to the conclusion that under the present circumstances, even with preference, the West Indies sugar industry could not continue, to lx* carried on because of the collapse of credit, and because the statement of Hie Chancellor of the Exchequer had knocked the bottom out of the market. “If and when preference is withdrawn without compensation.” said Lord Olivier, “tho whole of the West Indies suuar induslry, except so far as if produces for home consumption, will be nut into the process of winding up. and at Hie end of 18 months it will lo an end.” ‘‘He suggested that the report of the commission should he submitted to the Economic Committee which the Government bad lately set up. At present West, Indies sugar growers were producing at a loss of £1 lo £1 5s a ion. If preference were withdrawn they would produce at a loss of £5 a ton. Lord Pnssfield. Secretary for the Colonies, replying for the Government, said the fundamental cause of tho present situation was that production had outrun consumption. The difficulties of remedying the situation were almost, insuperable. When the Chancellor of the Exchequer stated his desire or intention to sweep awav duties on imported foodstuffs, he was expressing the feeling's of all three parties. The Liberal and Conservative parties, equally with Hie Labor Party,, were strongly against putting duties on foodstuffs. If relief were to be given to sugar planters, lie suggested that the charge could he heller borne by those of the public who were able to pay than bv the poorer section of the community. He hoppd that in the international field something could be done to deal with overproduction. He regretted ho bad no policy to announce, but. the Government would not he slow lo consider tiffs matter, the gravity of which they fullv understood.