SUGAR PRICES

Wairarapa Times-Age, 9 May 1939, Page 5

SUGAR PRICES

GOVERNMENT MAKING INVESTIGATION ACTION TO BE TAKEN IF NECESSARY. STATEMENT BY MINISTER. (By Telegraph—Press Association.) ’ CHRISTCHURCH, May 8. If an investigation at present being made in New Zealand indicates that action by the Government is warranted to control undue increases in sugar prices, either wholesale or retail, such action will be taken. This was stated by the Minister of Industries and Commerce, Mr Sullivan, today, when commenting in Christchurch on a letter which appeared in the “Press.” A correspondent drew attention to an increase in the retail price of sugar of £1 a ton, “on top of a rise in January of 10s, and several last year.” The writer suggested that, as the Minister had given an assurance that lie would not allow anyone to make an undue profit on necessaries, he should make an inquiry into the matter. Mr Sullivan’s statement in answer was as follows: — “My department made a thorough examination of the New Zealand accounts of the Colonial Sugar Relining Co., Ltd., in 1937 to determine whether the price of sugar being charged was reasonable. Information obtained was fully considered by the Government, and no action was deemed to be necessary at the time. “Since that date information has boon received regularly on changes in wholesale and retail prices of sugar. Variations in the raw prices of sugar occur almost daily, but it is the practice of the company to make no alterations in tne wholesale prices till the raw prices have risen or fallen ■to a certain figure.

“In the months following the investigation in 1937 the trend of raw prices was downward, and three successive reductions in wholesale prices of 10s each were made, in September. 1937. February and April 1938. Since April. 1938, the trend of raw prices has been upward, and increases in wholesale prices of 10s each were made in July and December, 1938, and March, 1939. This brought the wholesale price back to the same level as in August. 1937. “In April this year two further advances in wholesale prices of 20s and 10s each respectively have been made, and, from inquiries made here and in Australia, it has ,been ascertained that increases in wholesale prices have been the result solely of higher prices of imported raw sugar. “Investigations are also proceeding in New Zealand to determine to what extent any advances made in retail prices are justified. If the investigation indicates that action by the Government is warranted to control undue increases in sugar prices, either wholesale or retail, then such action will be taken as is considered necessary.”