GOVERNMENTS INTENTIONS

Auckland Star, Volume LVIII, Issue 127, 1 June 1927, Page 9

GOVERNMENTS INTENTIONS

SLIDING SCALE PROPOSED.

TO BRING STABILISATION

(Bt Telegraph.—Press Association.) WELLINGTON. Tuesday. The following statement by the Prime Minister was made late to nirht in regard to the dutie* on flour:— The Government has for s-omo lui.e had under consideration the question a> to the best method winch can l* adapted to encourage the growing of wheat in r■■■ Dominion. In connexion with thimatter the interests of both the ]■-••- ducers and consumers n. u-t be considered. If on the one hand a policy i* adopted under which in any year or series of years the price of wheal to '.Ingrower in New Zealand i≤ below thai necessary to give him a reasonable return this would have the effect of restricting the area u>ed for the production of wheat. On the other hand if in any year or series of years the price of wheat is relatively hiph this must have the effect of causing hiph prices of breiul and other wheat product* to the general consumer. It is dc-.-iretl also that arrangements should be made under which the conflicting interests of thn*.c affected can be adjusted without rer-ouw to special Governmental action such as embargoes, price-fixing. State importation, etc. , -1,-1^

After considering all the circumstances and possible courses of action the (;.i\ernment has come to the conclusion tlwt this object can l*->t be attained by a system of customs duties denned on the one hand to enable the grower to obtain a reasonable price for his wheat when world prices are low and on the other to keep the cost of bread and other wheat products at as low a lewl a< possible when world prices are hiph.

It has, therefore, been decided to ado; : a sliding scale of duties so fixed that the rate of duty on flour trill increase when the price outside New Zealand falU. hit will decrease when world prices incrca-e. It is, therefore, proposed to ask Parliament next session to alter the prc>cm duties on flour to the following ba>is : "Wheat flour, including wheat meal and similar preparations; when the current domestic vaJue of flour is £13 a ton of 20001b ad valorem tie duty shall be £.7 10/ a ton, provided that \u when ihe current domestic value exceeds £13. the rate of duty shall lie dt-creased by <-,].,• shilling per 20001b ad valorem fr.rV>err one shilling or fraction of one shillins by which the said current domestic value exceeds £13; (21 when the rurrei.t domestic value is less than £]?,. the rale of duty shall be increased by one shilling per 2(»001b for every one t-hilling or fraction of one shilling by which the current domestic valne is leU than £1.1 VMsen these duties take offpci dumnin" duty will not W charprvl on imt«. n <-d flour. '

After careful investigation the r,^ rrn . ment has decided that this M-heme of duties will be more satisfactory than the original proposal for a flat rale increase in dutv.

In view of the*- duties on flour ]t will be necessary jor the Government to seek Parliamentarv approval o f the scale of duties on wheat Notice of tie Government"* intention to alter the duties on flour h*.= alreadv Sen pren to the Coramonw,,,],!, authority and. if rarlian-ent approve the ,}«,,. proposals, the new dunes «;;] oferat- in October next- J v

When the ncir c~ a]< . c . f dl ., K . t effect the price of ]~™i «j ;ml vU] at present. Ik- left to ih, of ordinary tr B< j,. coninnit, n 1.. buyers and wllrr«. ''"'" i