§ Lieut.-Colonel WILLEYasked the Minister of Agriculture if the Government have a nominee on the board of Home-grown Sugar, Limited; whether the price now being offered for next year's beet is believed to be substantially below cost of production unless wages are further substantially reduced; and if, in view of the large amount of employment afforded by this industry, he is considering the removal of Excise on home-grown sugar?
Sir A. BOSCAWENThe answer to the first part of the question is in the affirmative. At the prevailing rates for wages and transport it is possible that the proposed minimum guaranteed price for next year's beet is below the present cost of production, but in addition to benefiting by any decrease in costs of production, the farmer will share equally with the company in any profits derived from any increase of sugar content above 16 per cent. and of sugar price above £43 per ton duty paid. As regards the last part of the question, home-grown sugar is already receiving favourable treatment, the Standard Excise duty being 19s. 5½per cwt., as compared with 25s. 8d. on foreign sugar and 21s. 4½d. on colonial sugar.