SUGAR DEAL.

Taranaki Daily News, 9 July 1920, Page 4

SUGAR DEAL.

NEGOTIATES REVEALED, "CHEAPEST IN THE WORLD." COMPANY'S LARGE PROFIT. (By Telegraph.—Special Correspondent.) Wellington, Last Night. When the Parliamentary party visited Fiji, said Mr. G, Witty (Ricoarton) in the House of Representatives, over 60,000 tonH of sugar were in stock there. The factories wished to get rid of this sugar in March, but it was held up owing to the shortage of ships., The new crop would begin to reach the 'factory at the end of June. Mr,, Witty asked if the New Zealand Government; . under th e ne.w contract, was going to pay the increased price for tne old sugar.

Mr. Massey replied that New Zealand had got all the sugar contracted for up to June 30 at the old price. The Dominion's contract with the Colonial Sugar Company had not covered the whole Fijian crop. It had covered a certain number of tons, and the quantity of sugar held in store in Fiji last ijarch did not concern New Zealand. The company was selling sugar in other Markets; in Canada, for instance. He Was advised that the company had delivered to New Zealand all the sugar required under the old contract. "The position," said Mr. Massey, "k just this. The Colonial Sugar Company early this year <*ffered us 85,000 tons of sugar at the price at which it was after* i wards purchased for delivery after the dose of the old contract on June 30. I hesitated for some time on account of the very serious increase in price, at compared with what we had'been pay. ing in recent years; but the indioatiora were that we were going to have a sogai shortage all over the world, and that sugar was likely to'rise very serioUsl*' in price. I consulted Cabinet, which had an opportunity to meet a representative of the Sugar Company, and we decided to purchase the 86,000 tons at the price that has been made public. : ,r very soon afterwards the anticipated increase in price took place. Tb* Sugar Company was, not anxious that we should buy, and they said they could have got £ Iff per ton more than we were asked to. pay. Sugar to-day is almost unobtainable in the South Pacific. Australia produces a certain amount of sugar in Queensland, but had to import additional supplies, and the imported sugar is costing over SBO per ton. If we had not 'bought, the company could have got a larger price for tho 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 the planters are demanding and receiving more than they have received np to the present, but New Zealand has no ca.yse to complain of its treatment ov the Sugar Company. ,' .;■ Mr. Holland: Oh, yea it has. Mr. Massey: We have got the cheapest sugar in the world. When the war began the price we were paying for sugar was £2l per ton. The price went up during the war in proportion to the increased taxation paid by the company, and last year it was £23 15s. New Zealand could not have got the sugar from anywhere else for that money. We cannot control the affairs of the Colonial Sugar Company* and we cannot control their affairs in Fiji. It will be the business of the Government in the future to take care that a sufficient supply of sugar will be available, and I don't think it will do to depend upon the Sugar Company solely. The Prime Minister added that the Minister for Industries and Commerce would make a full statement after the want-of-confidencc debate had been ended. He was informed that the company could have sold sugar fa Vancouver for £7O a ton. A gentleman acquainted with the business had 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 all the sugar contracted for at the old price prior to June 30. The new sugar was coining at the increased price. Mr. Malcolm (Clutha) BBkcd what precautions, had been taken to prevent the increased price being charged on sugar in store in New Zealand. Thjs 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.