SUGAR PROBLEM.

Wairarapa Daily Times, Volume 49, Issue 14960, 11 July 1923, Page 4

SUGAR PROBLEM.

IMPORTANT STATEMENT. BY MINISTER FOR COMMERCE. An important statement on problem was made in the House presentatives yesterday the Hon. W. Downie Stewart (Minister for Customs and for Industries and Commerce). The Government control of sugar was to come to an end. at the end of August next, stated the Minisr ter; and, in order to enable the Colonial Sugar Refining Company to meet the competition of Java sugar, it had been decided to transform the preferential duty of a pound on sugar into a protective duty of o-16d er lb. “The present duty, is a preferential duty of £4 13s -kl ' a ton, or 3d a pound,” said Mr Downie Stewart, “and tli9 company asked that the duty should be changed into a protective duty of approximately £3 a ton. Now, at the enquiry, we had all the expert accountants who controlled the books of the Sugar Company during the period of and after the war, and it was possible to cheek the statements as to increased cost of manufacture, and realising th e seriousness of the- position that would arise if the refinery had to dow r n, I submitted the matter Industries and Commerce CommittetPio Pear evidence in favour either of protection for the local works, or of a freomarket, and trusting entirely to outsida supplies for sugar.” The Leader of the Opposition (Mr T. M. Wilford): Did the consumers give evidence?

The Minister: A large number of manufacturers of jams, chocolates, confectioners, biscuits, and so on, gave evidence.

Mr Wilford: Did anyone on behalf of individual consumers?

The Minister: Not private consumers. The unanimous evidence given by these manufacturers was that whatever was necessary to secure for them, either the Colonial Sugar Company’s sugar from Auckland or some sugar of equivalent quality, should be done. It ,was essential that this sugar should be obtained. and the merchants and man- - facturers from every centre urged the Government to put on whatever duty was necessary to keep the Sugar Company’s works open.

“FRYING PAN TO FIRE. ’’. But this also appeared to be of the committee, that, recognising the Colonial Sugar Company had a monopoly, if we cut the painter with, them and allowed the works to close, we would only be out- of the fryingpan into the fire, because Java sugar was shown by the evidence placed before the committee to be under the control of a trust. So that if the Colonial Sugar Company shut down, we would then have the Java trust fixing the price of sugar. The result was that the committee came to certain unanimous decisions: —i(l) That the Government should adhere to its decision to give up the control of sugar in August, although that was controverted by quite a number of merchants who would much have preferred the control to continue. They held that at times the price might has been lower than that charged by the Government ,but they admitted that the purchases by the Government had been extremely fortunate, and had resulted in saving some millions of pounds to' the New Zealand public. The representatives of the Java industry admitted that to the committee.- f, (2) It was also decided that it Was necessary to impose this duty on refined sugar, allowing in raw 'sugar free, and that tlx©arrangements should only hold' the period ending Septemberyear—that is, a period of 12 months. The committee also recommended that the Department of Industries'and Commerce should enquire as : to other sources of supply than the Colonial Sugar Company, and as to the cost of establishing the' beet industry in the" Dominion. : ARRANGEMENT ARRIVED AT.' The Sugar Company was agreeable to continue its refinery on a duty of o-I6d per lb on refined pugar, '.which worked out at £2 18s 4d a ton. That, of course, would have to be reviewed again next year. This arrangement; made subject to the ratification of the House, is lower than that which the committee authorised me to negotiate, and the company says that the difference between £2 IBs 4d and £3 per ton represents a margin, to them of £SOOO a year.' The committee was impressed with the importance -of securing high grade sugar for the industries referred to. In connection with Fiji; the Sugar Company was at present procuring sugar from there on conditions as to cost of eau e fixed by the British. ment, which prevented itgar from that cane for any other ffiarkets but Britain and Canada, which iiad preferential tariffs. The committee held that for the next twelve months it is in the interests of the people of the Dominion that the Colonial Sugar Company, Auckland, which employs 300 to 400 men, should be kept opem, Mr R. A. Wright: Will the sugar be increased to the eonsume^H||||| The Minister: put the comnaj^MnHHflHHHH sugar. Tin JB\I. on a level some slight . v just about !..i ; M,-/-/U 't-if! is a ential duty. rS. " *■_ *f§j