RATIONALISATION.

Auckland Star, Volume LXVIII, Issue 47, 25 February 1937, Page 16

RATIONALISATION.

WHEAT INDUSTRY.

INTERESTS .OF CONSUMERS.

COMMITTEE APPOINTED.

(By Telegraph.—Press Association.)

WELLINGTON, Wednesday,

The Minister of Industries and Commerce, the Hon. D. G. Sullivan, announced to-day that the following have been appointed members of the Wheat Committee under the Board of Trade (Wheat and Flour) Regulations, 1937, which was gazetted last week: Mr. L. J. Sehmitt, secretary of the Industries and. Commerce Department, deputychairmaii; Messrs. A. Grant, W. W. Mulholland and H. F. Nicoll, as representatives of the wheatgrowers; Messrs A P O'Connor.,and H. Worrall, representing the flourmillers; and Mr. C.» CowaiT representing the master bakers. The Minister himself is chairman of the committee under the regulations.

The Minister stated that the new committee had held its first meeting, and among the matters considered was that of. perfecting the rationalisation of the wheat industry, with particular reference to increasing the acreage to be planted in wheat so as to provide as far a* possible for the whole of New Zealand's requirements.

One important part of the Wheat Committee's work in this connection will be further investigation of all avenues for a reduction in the coste of the wheat growing and allied industries. On completion of ita investigations the committee will submit it* findings to the Crovernment.

While the committee has a considerable fund of information concerning wheat control schemes in other parts of the world, it i 8 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 py the Government trade commissioners in various. partß of the worW . Ad tage will also be taken of a visit shortly to be made by Mr. E. H. Hullett, chief chfcm.st at the Wheat Research Institute o various wheat-growing countries fo Sods. , "* 0 Pr ° dUCtiOn aDd har -*in g

Co-operation Sought. As an integral part of the plan for increasing the area to be sown tffyear ioVTrVr i " T f ekin * the co-Vert-SSff^S TuTliS.?" production and mJS

"In any plan for rationalisation of Tn W. d ! red, eaid the Minister. In the very nature of things consumers t)f a commodity like wheat must far fion U oT^h r t thoS^ n^ed i" the prod!" tion of that product. Faced with their own peculiar problem produced are at times inclined to lose sight of the consumers' interests. Ther'e are two ways in which the producer may be assistedi from the economic point o/view -«ne by increases in prices and the other by a reduction in costs. '•When an attempt is made to just holding its own so far aa profits are concerned, the first demand Vthose a?wavs f iD that indUßtr y nil y w F an lncrea9e in th « "elling price. We can all make profits if a benevolent power step, i/ and fixet prices 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 the Government has adopted a policy having regard to the fact that there are about 20,000 people engaged in the pro auction of wheat and over 1,500 000 \n°t f n \° C t TT e iL With thiß P° sitio " in mind, the Government i 8 fixinjr 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 the workers are employed. Seduction in Costs. "For effective rationalisation at the "heatgrowing end it is necessary to determine as nearly as possible the cost of producing wheat on a reasonably well managed and efficient farm. It is the mtent,on of the Government to explore every avenue for cost reduction with a view to perfecting a plan for wheat growing and to ensure the growing of a sufficient acreage to supply O u? full requirements. • The G6vernment has done two things of great advantage to the wheatgrower. It has 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.

i I re , lS no P"arantee that wool and amb will remain at the present high lexel. Wheat farmers have a definite price guaranteed for wheat, and it is felt that the price fixed is a sufficient inducement to grow it. "I want wheatgrowers 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," concluded Mr hulhvan. "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 requirement of the whole Dominion, I may be obliged to ask them whether it is their desire that the scheme of wheat control should be continued or not."