WELLINGTON NEWS.

Waikato Times, Volume 97, Issue 15999, 30 May 1924, Page 2

WELLINGTON NEWS.

THE SUGAR PROBLEM. ,- (Special Correspondent.) WELLINGTON, Thursday. The Government played with the sugar problem during the war as they did with wheat and other commodities, but it must be said that they were fortunate as regards sugar, for that commodity was maintained at a reasonable price. Eventually when the Government abandoned control a duty was placed on sugar to give the Colonial Sugar Company a chance, but it was indicated that the duty would be temporary, and in point of fact it expires in September. Parliament is to meet next month, and unless the duty is continued the company threatens to close the refinery at Chelsea, which means that Parliament is to be bulldozed into continuing the duty. The 400 employees at the Chelfe'ea sugar refinery met last week, and it was unanimously resolved that some measure of protection was absolutely necessary if the interest of the workers was taken into consideration. The, interest of the 400 workers is not the ■only interest that must be taken into consideration. The population of New Zealand is 1,300,000, and the interests of this small crowd must be considered also. But will the Colonial Sugar Company close the refinery if the duty is abolished? The opinion in Wellington is that nothing of the kind will happen, but that the company will have to be content with a smaller profit. In the past New Zealand imported sugar from Mauritius, India, China and Java, and some of the best .sugar came from China. We also imported Queensland sugar the "Millaquin" brand ilnding a ready sale. First mark, guaranteed sugar also came from Europe in barrels, and very fine sugar it was. Then the Colonial Sugar Company came on the scene,, and by systems of rebates' and other commercial devices the company secured a virtual monopoly of the sugar trade of New Zealand —at all events very little, if any, foreign sugar comes into the Dominion. "Is it wise for the people of New Zealand," asks a Wellington merchant, "to place themselves at the mercy of a single company? Would it not be better to have some competition and import sugar from other countries. There is a desire to open up trade with Java, and here is an opportunity of reciprocity."' The duty on sugar should not be continued. Dairy Produce Market. The Dairy Control Board has been in existence some little while now, and seems to be lying low. We have thus to rely upon private advices', and private advices received in Wellington indicate that the butter market is quiet, with a downward tendency; but an improvement is expected later on. It is reported that some Danish butter sold to America is being sent back to England for sale, and the,Germans are reducing their purchases. The elimination of the German demand was immediately reflected in the price of the Danish product, and the price was reduced from 298 s to 1765, a drop of 32s per cwt, but towards last week the price was raised Gs to 182 s, owing 1.0 the ready demand. The question of whether prices will improve depends largely on the probable supplies available from the Northern Hemisphere. During the past two years European supplies have expanded, and there is no reason to believe that there will be any falling off this season. On the contrary, there is reason to believe that there will be a substantial increase because Russian supplies are expected to be exceptionally large—it was estimated some time ago by one authority at 24,000 tons. If Eitropeah supplies come up to expectation pricey, will not advance. The cheese, market, is said to he depressed owing lo heavy stocks* held in store, it has been discovered that the storage accommodation for cheese is not of the best, and consequently cheese that lias been some time in store is beginning to deteriorate. The heavy stocks are a menace to the market, and there can be no recovery until stocks are materially reduced. Factories are strongly advised to release a percentage of their holdings. There is very little hope of cheese rising above the present level.