DEAR SUGAR FOR AUSTRALIA.

Hokitika Guardian, 9 April 1920, Page 3

DEAR SUGAR FOR AUSTRALIA.

SYDNEY, March 26.

It is reported here that New Zealand, ‘as a result of some shrewd or lucky - agreement made a long time ago, has j sugar at 3d per pound. Lucky New 1 Zealand! Australia, up till now, has j had sugar, in somewhat short supply, at ojd—hut now the end has come, and it is going to be 6d or 7d in future. This is a result of a combination of illluck and Government bungling. This country consumes about 200,000 tons of sugar a year, and has been known, in a good season, to produce 300,000 tons. But, in rec?nt years, the industry has been sim. kingly neglected. Th© Federal Government took ' charge of sugar production and marketing as a war measure, and fought bitterly with the Queensland Government about it, the Queensland Government j regarding this control as an invasion of its sovereign rights. Between them, they tore the industry to pieces The Queensland Government plnced heavy wages burdens upon it ; the Federal Government, anxious to keep the people quiet, fed them with cheap sugar, and refused to give the grower the price he wanted. And so, as was to he expected, the production of sugar-cane dwindled rapidly. The Government simply made up the deficiency—amounting last season to 100,000 tons, by purchases abroad. And then the sugar market went mad and the Government, driven to-day to foreign markets by the shortage of .home production, has to pay anything up to £BO per ton for raw sugar, for which it is allowing the Australian grower £2l.

Hence some rapid .changes in the sugar situation. Since the Government must pay the world’s parity for sugar, the people must now pay at least 6d per pound for it. The Government, too late, is awakening to the need of encouraging local production. Tt has raised the price for raw .sugar from £2l to £3O 6s 8d per ton—but it is too late to stimulate the 1920 crop, on which a shortage of anything up to 100,000 tons is estimated. Had the Government only had the foresight to guard and encourage local production of sugar, Australian manufacturers who use sugar would to-day have had a unique advantage over all the manufacturers of the world.

The muddling Government nominally controls the distribution of the available sugar supplies. Actually, it has left them in hands where most scandalous things are permitted. Generally speaking, the wealthy classes can get as much sugar as they wapt, while the poorer classes are practically on rations.