SUGAR SUPPLIES IN DOMINION

Southland Times, Issue 23948, 14 October 1939, Page 4

SUGAR SUPPLIES IN DOMINION

Requirements For Almost A Year

ARRANGEMENT MADE BY GOVERNMENT NO INCREASES IN PRICE TO CONSUMER (United Press Association) WELLINGTON, October 13. An announcement that the Government had just concluded an arrangement with the Colonial Sugar Refining Company Ltd., which would ensure fulfilment of the Dominion’s sugar requirements for almost a year hence was made tonight by the Minister of Supply (the Hon. D. G. Sullivan). There will be no increase in the price of sugar to the consumer. “The sugar market in recent months has been uncertain as a result of countries stocking up in anticipation of' war. said Mr Sullivan. “But immediately after the outbreak of the war world prices hardened considerably. The British Government acquired all the Empire-grown sugar, paying a price considerably higher than the price at which Java raw sugar had been acquired for New Zealand. The Dominion’s requirements for four months hence had been covered with Javan purchases, but shipping difficulties have necessitated a falling back on Empiregrown supplies. “By averaging the price of the new purchase at the higher price with the cheaper price of the raw sugar at present in stock, it has been possible to avoid any increase in the current retail price of sugar to the public, which is 4d per lb at the main centres,” said Mr Sullivan. “This has been effected by an arrangement whereby the Colonial Sugar Refining Company Ltd. will receive a smaller margin of profit. The wholesale merchant will have his commission pegged at the amount he received a ton on September 1, when the War Emergency Regulations came into effect, and the retailer’s margin will be slightly diminished.” Mr Sullivan said that recently a thorough investigation was made by the Price Investigation Tribunal into the price of sugar, and, on the evidence submitted, it was apparent that the diminished margin now proposed could be reasonably carried by the retailer without hardship. “In arranging for the spreading of the burden of the increased cost in this way,” the Minister continued, “1 feel that in a time of national crisis all concerned in the chain of distribution should bear an equitable share. A price fixation order under the Board of Trade Act giving legal effect to the arrangement is being issued forthwith.”