SUGAR DUTY

Southland Times, Issue 19310, 31 July 1924, Page 5

SUGAR DUTY

QUESTION OF RETENTION LABOUR PARTY’S ATTITUDE NO FINALITY YET REACHED. (Our Parliamentary Reporter). WELLINGTON, July 30. No finality has yet been reached in the discussion of the question of the retention of the sugar duty after September 30, when it expires, and when, it is stated, that the Colonial Sugar Company contemplates closing their New Zealand relining works. The question of the retention of the duty on refined sugar was before the Industries and Commerce Committee of the House of Representatives at a meeting which lasted three hours this morning. No decision was reached, and, in fact, no progress was made.

Some discussion took place on a plea put forward by Mr H. E. Atmore, Member for Nelson, that sugar should be delivered at southern ports at the same price. as in Auckland. The Labour Party, on whom the whole question seems to hang and who opposed the duty last session, has apparently still to make up its mind as to its proposals. Despite suggestions to the contrary, it has been suggested that Labour will compromise if the duty is lowered or, in return, for a guarantee about the sugar price. It is believed that neither of these proposals, if made, would prove acceptable any more than Labour’s main objective of a State refinery. Labour members themselves admit that this last is not the immediate remedy which is required to prevent 400 workers at Chelsea refinery being thrown out of work. It is also admitted that a State refinery would have to possess independent supplies of raw material, involving plantations in Fiji or elsewhere and that all this cannot be accomplished before September 30, when the current duty of £2 18/4 on refined sugar expires. Moreover, as explained, a duty would still be required to protect the operation of the State refinery.

The Chairman of the Committee stated to-day that the negotiations were at a very delicate stage and that little profit could come of a public discussion at the present juncture. The Labour members declare that they have not yet decided on their line of action, although they are concerned to find a solution that will ensure a continuance of the employment of the men at Chelsea. There seems to be now no question that the Colonial Sugar Refining Company will close its works if the duty is not continued. There is also no misunderstanding as to the workers’ view.

The hopeful factor in the situation is that all parties are anxiously seeking a settlement and that is the very best augury that it will be found.