The Waikato Times. With which is incorporated The Waikato Argus. FRIDAY, OCTOBER 7, 1921. SUGAR

Waikato Times, Volume 94, Issue 14769, 7 October 1921, Page 4

The Waikato Times. With which is incorporated The Waikato Argus. FRIDAY, OCTOBER 7, 1921. SUGAR

j The Government have announced the j new prices at which they propose to I sell sugar, and there will be general satisfaction felt that, there is to be a | reduction in price, which is, however, 1 not to lake place for a short lime. The | Government reduce their price on Noj vember Ist, and the retailer is allowed until November 7th before lie lowers his price lo correspond. The reduction is £l2 per ton, which is just over lid per lb, and wc arc all called on lo feel duly grateful. There arc, however, one or two drawbacks, which cause dissatisfaction and arc likely to continue to do so. In the first place the fall in price has been anticipated land for some months past the demand j for sugar has been kept at the lowest | possible figure. The public have bought from hand Lo mouth, but that I is not all. Sugar enters largely into the manufacture of many kinds of food. Jam makers complain that they have done scarcely any business with grocers for some months past, because with a fall expected no one could afford to he caught with stocks on hand- No doubt there will be brisk demand after November Ist, but the manufacturer cannot prepare for it because he would have to do so with sugar at the old price. The only people who arc holding large slocks arc the Government themselves, and I hey have maintained the high price for four months in order to prevent any loss. Mr Lee, the Minister in charge of Commerce, is very complacent over Ihc results of the Government’s venture into the sugar business, but it is difficult lo sec what advantage lias been gained by either the Government or the people, lie claims that Ihc Government did not dfcsirc to make large profits, and that they have in fact made no loss. The reason, however, why they have made no loss is because they have kept sugar at the high price for four months longer than would otherwise have been Ihc lease. If there had boon any necessity ! for controlling sugar, no complaint j would bo made about this lengthening 1 of the period of high prices, but no I such necessity existed, and the Alin--1 isler’s statement makes it clear that j the Government could do nolliing lo j improve the supply or the price. He says that they buy raw sugar at Fiji i and have it refined by the Sugar Company at Chelsea at a very low figure, so that whatever profits the company make arc made on the raw sugar. It is the same company that produces the raw sugar in Fiji and refines it in New Zealand, and if they had charged nothing for refining they could still have fixed a price for raw sugar that would have left them a profit. The Government cannot control the price in Fiji in any way, and were therefore unable lo secure any advantage for the New Zealand consumer- There was the less excuse for interferin'- with sugar that tho company had treated their customers well. Throughout the war period wc had sugar at lower prices lhan were paid in any other country, and it was only when the Government look charge after the Armistice that the price was raised to any extent. Now the Government lake credit for Ihc low price anil the good quality, though obviously it is the company lo whom credit is due. Tho effect of the control has been to hamper business, and owing to the course which sugar prices have taken, the public have paid more than they would otherwise have done, When I he contract was made 15 months ago the price was probably reasonable. It rose for a short period and then fell again. Had I here been no control Ihc householder would probably have paid a little less for the same consumption. The interference of our own Government, however, is not all that wc have Lo complain of. The Australian Government also dabble in the sugar trade, and to help consumption they offer a bonus of £2O per ton on all sugar used in jam made for export. With this bonus the Australian manufacturer could undersell the local man, and to prevent this the Government prohibited the import of jam from Australia. No doubt such import would have injured our fruit industry; it is also without doubt that those who wished lo buy cheap jam were unable to do so. The Government decide to protect one portion of the community at the expense ot another, in which they are certainly taking an invidious course. If Governments could only realise that they are not qualilied lo go into business, and I leave these questions to he settled by ; supply and demand, they would avoid i much trouble and confer a great benefit 1 on their people. The .Minister hopes ! In be able lo drop the control of sugar in 12 months’ lime, hut it is safe lo say ihul in 12 months lie will slid he hoping. It is probable that Hie course of prices during Hie past year was anticipated by those whose busi- | ness il is to watch the markets, and ( the Government will always have the worst of the deal when they bargain with those who are in Hie trade. Wo are aware I hat in calling on Hie I Government, to abandon trade we are i running counter to a great body of 1 opinion. The favour that is fell for j Government trade is largely due to the | trusts and combines that are common j in 'lbis country, and the profiteering | that they indulge in. Business men | are themselves to blame for conditions I that they resent. They see the mis- ! chief caused by Stale trading, but while i Hie tendency to form combines exists j and increases, the demand for State | control will grow likewise. We do 1 not, pretend to have a ready-made method of combatting the evil which [has puzzled Americans for 20 years

past. \\> are sure. howover. Utal Stale I” ding is no remedy, as it. merely forms one iiwe 1 trust, siicli as exists in wool. An efficient Board of Trade with the right to inspect prices, cal! for costs, and take action whore necessary might be of value, but only if it were popularly elected, and if the right to appeal to the Supreme Court against its decisions was granted. It is possible that the tendency amongst business men to combine for the purpose of keeping up prices will disappear if we have a prolonged period of bad trade. The tendency will certainly bring Ihe had trade, anti if it he not altered thereby it is certain that other steps will have to he taken to deal with a modern evil.