SUGAR PRICES

Dominion, Volume 13, Issue 244, 9 July 1920, Page 7

SUGAR PRICES

THE. COMPANY'S POSITION

EXPLANATION BY PREMIER

A GOOD CONTRACT

When tto Parliamentary party visited Fiji, said Mr. G., Witty (Riccarton) in the Housoof Kepresentatives, over 60,000 tons of sugar, were in stock there. The factories wished' to get rid of this sugar ill March, hut it was held up owing to shortage of ships. The new crop would begin to reach the factories at the end of June. Mr. Witty asked if the New Zealand Government, under the new contract, was going to pay an increased price for the cf.d sugar. Mr. Massey replied that New Zealand had got all the sugar contracted for up to Juno 30 at tho old price. . The Dominion's contract with the Colonial Company had not covered the whole Fijian crop. It had . covered_ a certain number of tons, and the quantity of sugar held in Btore in Fiji last March did not concern Now Zealand. The company was selling sugar in other markets, in Canada; for instance. He yrns advised that tho company had delivered to' New Zealand all' the sugar required to be delivered under tho ol<l contract. "The position," said Mr. Massey, "is just this: The Colonial Sugar Company early this year offered 65,000 _ tons of sugar at the price at which it was afterwards purchased, for delivery after the olose of tho oF.d contract on June 30. I hesitated for some timo on account of the very sorious inorease in price as ' compared with what we had! been paying in roccnt years, but_ the indications were that we were going to have a nugar shortage all over the world, and that! sugar was likely to rise very seriously in price. I consulted Cabinet, which had. an opportunity to meet ft representative of tho Sugar Company, and wo decided to purchase tho 65,000 tons at tho price that has' been made public. Very soon afterwards the anticipated increases in price took place. 'I.oe Sugar Company was not anxious that we should buy. They said then they could have got £10 per ton more than wo were asked to pay. "Sugar to-day is almost unobtainable in tho South' Pacific. Australia produces a certain amount of sugar in Queensland, but has to import additional supplies, and the imported sugar is costing over £80 per ton. If we had not bought, the company could have got a larger price for the sugar we are to obtain." Mr. Holland (Grey): It means a million in profits to the Sugar Company. Mr. Massey: There is ,no question about that Mr. Holland: They are simply a robber concern. . Mr. Massey: It is understood that the planters are demanding and receiving wore than they Imvo received up to the present. But New Zealand has no cause to cot: plain of its treatment by the i.' Sugar Company. Mr. Holland: Oh, yes, it las. Mr. Massey: We have got the cheapest sugar in the world. When the war • began the price we were paying for sugar was £21 per ton. The price] went tip during the years of the war in proportion to' the increased taxation paid ■ by the .company, and last year it was £23 15s'. New Zealand coufd not have got the sugar from anywhere else for that money. We' cannot control the affairs of the Colonial Sugar Company. We cannot even control their affairs, in Fiji. It will be the business ,of the Government in tho future to take care thai/a sufficient supply of sugar will be avaSlable, and I don't think it will do to depend upon the Sugar Company solely. . The Prime Minister added that the Minister of Industries and. Commerce Would mate a full statement after the want-of-confidence debate had been end- ' ed. He was informed that the company could have sold sugar in Vancouver for £70 a ton. A gentleman acquainted with the.' .business Ivad stated' that he took off his hat 'to the man who made so good an arrangement on behalf of New Zealand.. Mr. Massey repeated that New Zealand had got aill the sugar contracted for at the old price prior to June 30.' New sugar was coming at the increased price. Mr. Malcolm (Clutha) a6ked what precautions had been taken to> prevent the increased price being charged on sugar in store in New Zealand. The Prime - Minister: We made inquiries through the Board of Trade, and we are informed that there was - next to nothing in store. There was practically no hoarding except a few pounds here and there.