§ Mr. Staintonasked the Minister of Agriculture, Fisheries and Food whether he is aware that changes in sugar distribution payments over the past several months have been of a pattern which can reasonably be anticipated by sugar distributors and users, and that this situation has recently led to a speculative hoarding of supplies by sugar distributors and users, and a quota scheme being imposed by the refiners with, in some areas, a shortage of sugar for the household consumer; and what action he will take to rectify the situation.
§ Mr. Scott-HopkinsThe fluctuations in the world price of sugar in recent months have necessitated frequent changes in the rate of distribution payment. It is true that, when the ex-refinery price of sugar rises, it can in general be foreseen that corrective action will be taken by increasing the distribution payment; and conversely when the price falls. This is inherent in the operation of the machinery for offsetting movements in the world price. Distributors and users of sugar, as of other commodities, naturally seek to buy and sell to their best advantage; but if their operations to this end lead them to place abnormally large orders with the refiners at certain times, it is not unreasonable for the latter to impose a quota scheme to protect the rest of their customers. My right hon. Friend is not aware of shortages of sugar for the household consumer in any area in recent months, and does not consider any action is called for. There can be no shortage nationally as some 95 per cent. of our requirements is supplied under contract by our own and Commonwealth producers.