WHEAT INDUSTRY

Ashburton Guardian, Volume 57, Issue 115, 25 February 1937, Page 9

WHEAT INDUSTRY

PERSONNEL OF COMMITTEE. MINISTER DEFENDS PRICE. SUFFICIENT INDUCEMENT. (Per Press Association.) WELLINGTON, February 24. The Minister of Industries and Commerce (the Hon. D. G. ISullivan) announced to-day that ,tho following had been appointed members of tlie Wheat Committee under the Board of Trade (Wheat and Flour) Regulations, 1937, which were gazetted last week:— Mr L. L. Schmitt (secretary of the Industries and Commerce Department) deputy-chairman. Messrs W. Grant, AV. A\ r . Mulholland and H. F. Nicoll as representatives of the wheatgrowers. Messrs A. P. O’Connor and H. AVorrall, representing the flourmillers. Mr C. Cowau, representing the master bakers.

The Minister himself is chairman of the committee.

The Minister stated that the new committee had held its first meeting yesterday, and amongst the matters considered was the perfecting of the rationalisation of the wheat industry with particular reference to increasing the acreage to he planted in wheat to provide so far as possible for the whole of New Zealand’s requirements. “The committee,” he said, “is taking all possible steps to this end. One important part of the wheat committee’s work in this connection will be a further investigation of all avenues for a reduction in the cost of wheat growing and allied industries. On the completion of the investigation the committee will submit, its findings to the Government. While the committee has a considerable fund of information concerning wheat control schemes in other parts of the world, it is nevertheless taking immediate steps to ascertain the latest methods employed by other countries, particularly for ensuring that an adequate acreage is grown. These inquiries are being undertaken by the Government Trade Commissioners in various parts of the world. Advantage will also be taken of the visit shortly to be made by Mr E. H. Hullett, chief chemist, Wheat Research Institute, to various wheatgrowing countries to inquire into production and harvesting methods. “As an integral part of the plan foi increasing the area to be sown this yeai the committee is seeking the co-opera-tion of the united wheatgrowers’ organisation, stock and station agents, grain merchants, implement manufacturers and other interests directly engaged in the production and marketing of wheat.” Interests of Consumers. The Minister stated that in any plan for the rationalisation of the industry the producer and consumer must be considered. In the very nature of things consumers of a commodity like wheat must far outnumber those engaged in the production of that product. “Faced with their own peculiar problem, producers are at times inclined to lose sight of the consumers’ interests. There are two ways in which the producer may be assisted from an economic point of view—one by increases in prices and the other by a, reduction in costs. When an attempt is made to rationalise an industry which is only just holding, its own so far as profits are concerned, the first demand of those engaged in that industry is almost always for an increase in the selling price. We can all make profits if a benevolent power steps in and fixes tlie price at a figure to cover all costs and leave a margin .of profit without regard to efficiency, but this would not be rationalisation in the public interest. In the wheat industry in particular, tlio Government has adopted a policy of having regard to the fact that there are about 20,000 people engaged in the production of wheat and more than 1,500,000 people to consume it. With this position in mind the Government is fixing the price of flour and bread at a figure which will ensure those millers and bakers who operate their plant efficiently a reasonable return. These prices are not fixed without a full and thorough investigation, of the industries concerned and the wages and conditions under which tlie workers fire employed. For effective rationalisation at the wheat growing end it is necessary to determine as nehrly as possible the cost of producing wheat on a reasonably well managed and efficient farm. As previously pointed out, profits can be ensured not only by an increase in the selling price, but by a reduction in production costs, and it has been found that even with higher wages, up-to-date, efficient methods make for a reduction in costs. It is the intention of the Government to explore every avenue for cost reduction with a view to perfecting a plan for wheat growing and toi ensure the growing ot a sufficient acreage to supply our full requirements. Two Advantages. “The Government has dqne two things of great advantage to the wheat-grower. It lias placed an embargo on imported wheat and flour, thus conserving the whole New Zealand market for its own. growers, and it has fixed the price a year in advance, thus removing all doubt in the mind of the farmer and ensuring a fair return for wheat even if all) other prices fail. There is no guarantee that wool and lamb will remain at the present high level. Wheat farmers have a definite price guaranteed for wheat, and it is felt that the price fixed is a sufficient inducement ot grow it. “I want wheat-growers thoroughly to understand that I expect them collectively and individually to co-operate with the Government and myself in doing everything possible to achieve the object I have planned. It is impossible to obtain satisfactory results when the whole of the effort and endeavour is left to a few. In appealing to growers, I am in earnest when I say that unless they make genuine efforts to assist me by sowing sufficient wheat this year to satisfy the requirements of the whole Dominion, I may he obliged to ask them whether it is their desire that the scheme of wheat control should be continued or not.”