§ Mr. Charles Morrisonasked the Minister of Agriculture, Fisheries and Food whether he is now able to announce the ex-refinery price range for sugar for 1972.
§ Mr. PriorYes. In December the Government decided to increase the price of the sugar we buy under the Commonwealth Sugar Agreement mainly to the benefit of developing countries. This is the largest element in the increases in the cost of sugar over the last year.
In the circumstances the Government have decided to contain the rise in the ex-refinery price of sugar to 5 per cent. above the range operative for most of 1971. I therefore propose to make special payments to the Sugar Board during 1972. I have received certain undertakings from the sugar refiners concerning the refining margin which they will 360W charge during 1972. The range within which the board expects to be able normally to keep the ex-refinery price of granulated sugar for the remainder of 1972 is therefore £82 to £92 per ton. Orders have accordingly been made which have the effect of reducing the ex-refinery price of sugar by £24 a ton.
I have been assured by the trades concerned that the benefits of the Government's action will be passed on to the public. The payments involved are not expected to exceed £25 million. A Supplementary Estimate will be sought in due course. In the meantime I shall draw on the Contingencies Fund.