SUPPLIES OF SUGAR

Wanganui Chronicle, Volume 83, Issue 243, 14 October 1939, Page 8

SUPPLIES OF SUGAR

DOMINION REQUIREMENTS ASSURED FOR ONE YEAR MIDDLEMEN’S LOWER MARGINS 1 Per Press Association, j WELLINGTON. Oct. 13. An announcement that the Government had just concluded arrangements with the Colonial Sugar Relining Co.. Ltd., which would ensure fulfilment of the Dominion’s sugar requirements for almost a year hence was made to-night 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, due to 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 NewZealand. The Dominion’s requirements for four months hence had been covered with Javan purchaser, but shipping difficulties have necessitated falling back cn Empire-grown supplies. “By averaging the price of the new purchase at a higher price with the cheaper price of 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 Co.. Ltd., will receive a smaller margin of profit, the wholesale merchant will have his commission pegged at the amount he received per 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 ’iminished margin now proposed could reasonably be carried by the retailer without hardship. “In arranging for the spreading of the burden of increased cost in this way,” the Minister continued. *7 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