Untitled

Hokitika Guardian, 22 July 1921, Page 2

TNtoresting particulars were given at Wellington last week by the Hon. Downie Stewart, Minister of Internal Affairs and Customs, in connection with the position of the sugar supply. He said there were two points that can he made quite clear. They were, first that the Government has entered into a contract with the Colonial Sugar Company till June, 1922; second, that the Government has taken no steps to protect its contract by seeking to exclude supplies from other sources. The Mnister added that he could not make the terms of the contract public as the details were still subject to negotiation, hut the general lines of the previous contract were followed. The Government was committed to the contract before the sudden change took place in the condition of the sugar market. It was frankly admitted that the altered condition of the market might make this contract unprofitable, but that depended upon the quantities available and the prices during the curent year. A loss would have to be borne by the country as a whole; hut the public should not forget that for some years New Zealand, in consequence of the action taken by the Government, had been very fortunate in the matter of sugar supply. Tlie nlternntve to the present position would have been for the Government to protect its contract by prohibiting the importation of sugar out side the contract. He agreed with those who claim that there are objections to Government control; for one reason that, when the market turns against the Government and a loss ensues, past benefits are forgotten and are not set off against any possible losses. But at any rate the Government came to the liest conclusion it could on the facts before it at the time and on tlie advice of the Board of Trade. When a new contract was decided upon, it was of the utmost importance that an adequate supply of sugar of good quality at a price that seemed reasonable should he assured for the year. Tn the meantime, there is no need for any one to go short of sugar, as it is now obtainable through ordinary trade channels in any quantity desired.