WHEAT TOO DEAR

Auckland Star, Volume LXX, Issue 192, 16 August 1939, Page 10

WHEAT TOO DEAR

PRICE IN DOMINION.

COST OF LIVING EFFECT. " TREMENDOUS DISPARITY" While wheat in New Zealand is sold under Government control at 7/3 a bushel, the price received by producers in Australia is below 2/, the lowest on record. With handling and shipping charges added, Australian wheat is landed at Auckland at a total cost which is less than half that ruling on the Dominion market.

This position was commented upon this morning by Mr. Harvey Turner, Auckland produce merchant, who arrived back by the Wanganella after

a brief business visit to Sydney. He emphasised the need of devising some method by which wheat production could be maintained in New Zealand without at the same time holding up the price against the consumer. "There Is a tremendous disparity between the price of wheat here and in Australia," he said, "and this is a great handicap to poultry producers and bakers. Although it is necessary to keep the farmers producing wheat, it should be possible to arrange financial assistance which would at the same time allow the public to have the benefit of cheaper wheat. The position is particularly difficult for egg producers, whose costs are very largely governed by wheat." Government assistance would have to be given to the wheat farmers in the Commonwealth, stated Mr. Turner, and a conference representing the Federal and State Governments had been called this month to discuss proposals, but owing to failure to agree on terms, had made no progress. The discussions revolved around a guaranteed price, which would require a payment to producers running into millions of pounds annually. Further efforts would have to be made, as the problem was undoubtedly the most urgent in the Commonwealth

Potato-Onion Scarcity. In contrast with the abnormally lowprice of wheat in Australia, exceptionally high prices were being paid in the cities for potatoes, onions and some other classes of produce, stated Mr. Turner. In Sydney there had been an acute shortage of potatoes. The scarcity of onions, which first began to be felt at the commencement of last season, had now extended over the greater part of a year. New Zealand had supplied from 2000 to 3000 tons some months ago to relieve the position to some extent, and since then Australia had been buying from Japan, California and Egypt. Lately a further small quantity had been arranged from New Zealand. In comparison with other onions on the Sydney market, the shipments from this Dominion had created a most favourable impression, but there had been little direct competition.

For potatoes Sydney was relying almost entirely on Tasmanian supplies, md Melbourne on the Victorian crop! Because of the shortage the prices ruling were much higher, than usual at this time of the year, being comparable with those in Auckland. New potatoes would not be on the market in quantity until the end of October or earlv November. Ibe first being expected 'from West Mistralia. Fruit was generally dearer than usual i late winter in Sydney, concluded Mr. turner, and citrus varieties were exceptionally high in price. Accompanying Mr. Turner were Mr. H. Fow, of Hamilton, and Mr. E W Turner, of Aucklaad-