The Daily News. FRIDAY, SEPTEMBER 10, 1915. THE SUGAR MONOPOLY.

Taranaki Daily News, 10 September 1915, Page 4

The Daily News. FRIDAY, SEPTEMBER 10, 1915. THE SUGAR MONOPOLY.

•Prom the full report of the speech made by the member for Egmont (Mr. C. A. Wilkinson), on the Budget debate, we find that lie made some very pertinent remarks on the subject of the sugar monopoly and the taxation of that article. He said:—

"We might consider a tax on sugar, though some people will object to that. I want just to point out, in connection with sugar, that a tax of y 2 d .per pound would produce over £300,000. It seems a very large amount, but what 1 want the House to consider is this: The price of sugar has been increased, by the people selling it, from £ls per ton before the war to £'2l per ton. to-day; anil that is an immeasurably greater tax on thia article than the Government are prepared to face. I say that if the National Government is the strong institution it is supposed to be it could deal effectively with a company that extorted from the people of New Zealand such enormous increases in the 'price of sugar. It may readily be said that sugar is cheaper in New Zealand than in any other part of the world. That has been said; but. the fact remains that the cost of production of sugar is not any greater to-day than was the case before the war. 'Die increase is about £G per ton on, saVj 50,000 tons, or £30,000. Another thing in connection with sugar is this, the-, sugar company have arrangements with the wholesale houses, and every bag of sugar that is consumed b.v the people pays a tax to the wholesale house of almost 3d a bag. It is a very considerable tax on the people, and it is not right. A little while ago this same sugar 'company was fined by the Courts a few thousand pounds for illegal trad,ing. What is that to them if they are allowed the right to put up the price the next day? They can thus collect the fine .in less than a week. A monopoly such as that should he looked after by the Government. A little while ago we had a proposal before the .House to establish a Board of Trade and Commerce, and I do hope the Government will not overlook it. It is a very important thing. We want same tribunal in existence that is always ready to investigate matters of his kind and report to the House what is being done. As a rule people hear nothing about this; they pay the price and say nothing. The Government seems perfectly satisfied that the price of sugar should be £2l a ton; but, I as a member, and as a business man regard the price as unfair. Jf the company controlling sugar in tills Dominion is too strong for the present Government, it does .not say to 0 much for the National Government. If wo are going to allow monopolies a free and uninterrupted run, that is to say, that they can do as they please, what is going to happened in the country in the couree |of measure time? We must hare methods of control; it is imperative. In America monopolies have been grappled with by the State, and the evils have been largely reduced. And we can do that here. We have given them a good run. We have monopolies now, there Is no question of that, and as the country gets older they will become still more powerful unless restrained, so that now is the time to deal with them. Tn a young, powing and energetic State like New Zealand, we can if necessary go on the lines indicated, and serve the people better than monopolies can, and at the same time make a decent profit for the Stale itself."

Every householder will cordially agree with Mr. Wilkinson as to the necessity for controlling monopolies such as that of sugar, an article that eaters largely into household economy. The subject is one upon which -the member can SDcak

■with authority, afid lie, dpuittless, recognises He (Ufficulty of gaping with the. evil. Ifc would lie only adding to sie burdens pf'the geople to impose a, tfts on sugar unless tile wholesale and retail selling prices were fixed, Even in that event it must, be remembered that the have tie power to etop supplies and that evil would, as they well know, bring about a revocation of the price limit. It is difficult to know how to overcome the evil effectively, and until the problem is solved the public will have to remain at the mercy of the Trust and their agents, though it is grievous that the people should be exploited in such a barefaced manner. The remedy will surely tax the ingenuity of any Ministry. So far as the tax of a half-penny is concerned, wo do not think the people would, under the ciicumetancoa, strongly object if they know the Trust would not benefit, and that the proceeds of the tax would be 'leveled to the'special purposes arising from the war, 6* '.Vhere are other and better means of raising money than by a tax on sugar, unless the burden is [made to fall on the monopolists. One thing is perfectly certain, the State cannot grow the sugar, and that is where the ohief trouble lies.