§ 50. Mr. Hurdasked the Minister of Food why 33,000 tons of refined sugar have been sold to the Persian Gulf from the United Kingdom refineries, when the sugar ration to United Kingdom consumers has been reduced.
§ Mr. StracheyThis sale forms part of a dollar-earning business which involves the import of additional raw sugar into this country from dollar sources, processing it here, and exporting the refined product at a considerable profit in dollars. As my right hon. Friend the Chancellor of the Exchequer told the House on 23rd October, the United Kingdom sugar ration has been cut in order to save dollars.
§ Mr. HurdMay' I take it from the Minister's answer that this raw sugar is not being paid for in dollars in the first instance, and that this means a clear net gain to us in dollars?
§ Mr. StracheyNo, Sir. It is being paid for in dollars but more dollars are earned on its resale refined.
§ Sir W. SmithersDoes the Minister then believe in the profit motive?
§ Mr. Anthony GreenwoodLooking at this matter from the dollar point of view, would it not have been more advantageous to make this sugar available to sweet manufacturers in this country to 1141 use for manufacturing sweets for export instead of exporting refined sugar?
§ Mr. StracheySugar is made available for this purpose.
§ Mr. W. FletcherDoes the Minister agree that the very high price paid for sugar in Cuba may lead to a loss on re-exports?
§ Mr. StracheyNo, Sir. A very considerable profit is being earned on these re-exports.
§ Major BruceWill my right hon. Friend continue to protect the interests of this private enterprise which is making such a valuable re-export for the country's dollar needs?