HC Deb 08 May 1939 vol 347 cc14-5
57. Mr. Thorne

asked the President of the Board of Trade whether he can give any information about the 200,000 tons of surplus sugar in Cuba; whether he is aware that the price of sugar will be increased on Monday by ¼d. per lb. due to a shortage of sugar; and to what extent he intends to exercise control of the Sugar Council?

Mr. Cross

I understand that on the basis of the export quotas for Cuban sugar at present fixed for the United States market and those authorised for the world market by the International Sugar Council, Cuba is likely to have surplus stocks of sugar of the order mentioned by the hon. Member at the end of the year. As regards the second part of the question, I am aware that the Retailers' Sugar Association have recommended an increase of ¼d. per lb. in the retail price of sugar to operate from today. As regards the last part of the question, I would refer the hon. Member to the answer given to the hon. Member for Bodmin (Mr. Rathbone) on Friday last, a copy of which I am sending to him.

Mr. Thorne

Does not the Parliamentary Secretary, realise that this is a serious matter for this country, because as a consequence of the Budget there is a ¼d. increase in the lb. and now this increase means another ¼d. a lb. which is a ½d. per lb. on sugar? That means a lot to many thousands of homes in this country.

Mr. Cross

The position is that there has recently been quite an abnormal demand for sugar, and the quotas which are at present authorised by the International Sugar Council will not be sufficient. The attention of the Council has been drawn to the matter by the Government and a meeting of the executive committee is being called for this week.

Mr. Thorne

Have the Government any power to compel these people to release a major part of this sugar in order to bring prices down?

Mr. Cross

There are no compulsory powers because this is an international body, but all the Governments participating have certain rights, and His Majesty's Government have certain rights, of withdrawing from the Council if, after an abnormal rise in world prices, the Government request the Council to take steps to remedy the situation, and the Council fails to do so.

Captain Arthur Evans

Have His Majesty's Government any reason for believing that Cuba has already refused to release any additional amount?

Mr. Cross

I should require notice of that question.