SUGAR SUPPLY

Gisborne Herald, Volume LXVI, Issue 20068, 14 October 1939, Page 9

SUGAR SUPPLY

DOMINION’S NEEDS FULFILMENT FOR YEAR NO RISE IN PRICE A- . PROFITS SLIGHTLY CUT

(Por Press Association.) WELLINGTON, this day,

An announcement that the Government had just concluded arrangements with the Colonial Sugar Refining Company,-Limited, which would ensure the fulfilment of the Do- w minion’s sugar requirements for almost a .year hence, was made last 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 the war,” said Mr. Sullivan. “But immediately after the outbreak of 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 i'aw sugar had been acquired for New Zealand. The Dominion’s requirements for four mohths hence had been covered with Javan purchases, but shipping difficulties have necessitated falling back on Empire-grown supplies. “By averaging the price of the new purchase at the higher price with the cheaper price of the 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 Company, Limited, will receive a smaller margin of profit. The wholesale merchant will have his commission pegged at the amount he received a ton on September 1, when the War Emergency Regulations came into effect, and the retailers' 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 diminished margin now proposed could be reasonably carried by the retailer without hardship. “In arranging for the spreading of the burden of the increased cost in this way," the Minister continued, “1 feel that in a time of national crisis alTconcerned 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 forthwith. . V