BOUGHT CHEAP.

Auckland Star, Volume LXIX, Issue 208, 3 September 1938, Page 12

BOUGHT CHEAP.

AUSTRALIAN WHEAT.

SUBSIDY OF £180,000.

UNLUCKY SOUTHERN FARMERS

(By Telegraph.—Tarliamentary Reporter.) WELLINGTON, this clay. Emphatically protesting against the people being taxed to provide a subsidy for the wheat industry, Mr. S. G. Holland (National. C'hristchureh North) made the allegation in the House of Representatives yesterday that the North Island was being allowed to "put it all over" the South. Different methods were being used to finance the dairy industry of the North Island to those used in assisting the wheat industry of the South, and an explanation was called for. Mr. Holland said that the people had to provide £180.000 as a subsidy towards the wheat-growing industry, and this apparently had to come out of taxation. He realised that the Minister of Industries and Commerce, Mr. Sullivan, had the interests of the wheat farmers at heart, but his policy was not in the ] best interests of the country generally. The Minister was responsible for the loss shown in the operation of this industry, since he bought wheat at one price from the farmers and sold it at a lower fijn re to the millers. To make up the difference the people 'had to be taxed. Ask for a Grant. Why could the Minister not go to tlie Minister of Finance. Mr. Nash, and ask for a grant on the same lines as that given to the dairy farmers? Mr. Holland asked. When the dairy farmers wanted £300.000 they Went to Mr. Nash, who "ranted them the money right away. This money came out of the Reserve | Bank, and the people did not have to pay taxation on it. If that principle was right for the dairy industry it was surely right for tlie wheat industry. Conversely, if it was wrong for one it was wrong for both. Mr. W. J. Poison (National, Stratford) : Don't you want the wheat farmers to get the £180,000?

Mr. Holland: Of course I want them to receive assistance, but it is the method of providing that assistance that concerns me. The Minister should explain how the grant is made up. He should also tell us whether it is to be a permanent charge. "It seems to me that the more wheat we grow the more money we lose, and the more wheat the Minister imports the more money he makes," commented the Leader of the Opposition, Mr. Hamilton. "That is the dilemma the Minister find« himself in. The production coste are so high in New Zealand that we have to subsidise the grower." The Minister of Industries and Commerce, Mr. Sullivan, said wheat growing in Canterbury was an important industry and employed a large number of people. It was a fact that the price of wheat had come down considerably in Australia, but it varied a great deal. The general manager and the Wheat Committee had shown a great deal of discretion and judgment in selecting the right time to buy. The general effect of the purchases had been profitable to the Government. Mr. Hamilton: How many bushels? The Minister: About 3.000,000, and we still have some more to buy. An Opposition Voice: Then you cannot insulate New Zealand? Favourable Purchases. The Minister said that if the Government had not made favourable purchases in Australia, it was possible that the subsidy would have cost another £100,000. Prices in Australia would not be low all the time. Mr. Dickie: What is their export surplus ? Is it 60.000,000 bushels ? The Minister: It is very high. We must buy at the right time, and. having done that, the result has been a substantial saving to the Dominion.

Mr. Sulliv; added that he would sooner see i.ie New Zealand farmers crowing all the wheat required in the Dominion. The growers liad co-operated with the Government, but they had been unlucky in regard to the weather, season after season. He was satisfied . the growers wanted to do their best, and for that reason they deserved a i great deal of sympathy. For three sea- j sons, runninz they had prepared their land, but had been unable to use it. Mr. T. D. Burnett (National. Temukal: What about labour costs? No Grouch from Farmers. The Minister replied that he had heard 110 grouch from the farmers concerning labour costs. He had heard more about domestic work. Mr. Burnett: You have done your best. I The Minister said that the GovernI ment had bought at a phenomenally low price at the present time. Had it not been for that the loss to New Zealand would havfe been in the vicinity of £270.000. Australian wheat growers were agitating for subsidies at the present time. In six years the Australian Government had paid £14,000,000 in subsidies to the wheat growers, and many other countries were also paying subsidies, as it was generally recognised that a country should grow its own wheat and manufacture its own flour. Tn reply to Mr. Poison, the Minister said he did not think there was a subsidy bein<r paid to Australian wheat growers at the present time.