DUMPING DUTY.

Press, Volume LXIII, Issue 18911, 28 January 1927, Page 10

DUMPING DUTY.

ON AUSTRALIAN FLOUR

MINISTER'S STATEMENT

WHY ACTION WAS DELAYED

[•fin PEEBS Special Service.] WELLINGTON. January ?7

"1 am now in a position to make a statement on the question of imports of flour," stated the Hon. Mr Downie Stewart to-day. "The Government has been severely criticised in Canterbury with reference to the importations of flour. The main ground of complaint has been that the imports of flour from Australia at a lower price than it was being sold in Australia would prejudicially affect the wheat-growers in Canterbury hi the sale of their incoming crop. Iliavo been fully alive to this difficulty, but I was also bound to see that reasonable supplies of flour for the requirements were available in ~Sew Zealand up till the i'.i-M when the new crop would bo ready for milling. As a matter of fact some of my critics who attacked me most bitterly in the public Press Mere aware of the fact that thorn was a threatened serious shortage of flour, and that importations wore absolutely essential to bridge the gap. It would surely be beyond all reason to suggest that by imposing extra duties I should check the necessary importations of flour and compel the public to pay a higher price for flour when there were not sufficient supplies on the local market, and the" new wheat crop was not vet ready for milling. "The chairman of Distributors, Ltd., Mr Corson, attacked me most violently in public for not immediately imposing dumping duties, whereas I have clear evidence that he was aware of the shortage, and knew also that the new crop of New Zealand wheat would not "be ready for milling until near the eno of February. No Government could possibly justify making imports more difficult and more costly while the New Zealand wheat-grower's crop was not ready. It is true that some farmers had to make forward sales at ruling prices, and suffer accordingly, but there was no means by which I,could protect them and at the same time avoid the real danger of a shortage in flour. All the information I have been able to obtain shows that importations of flour have not been made or arranged for in excess of the country's requirements. However, from reports now to hand, I think the importations in sight, plus the local supplies, are sufficient to fill the gap pending the Dominion's new crop being available for gristing. But up to the present stage it would not have been in the general interest to impose dumping duty.

"What is proposed now is to admit Avithout dumping duty, lines of flour from Australia which comply with each of the following conditions: (a) Definite' contracts must have been made not later than this date, viz., January 27th, 1927. (b) Such contracts must have specified shipment by vessels sailing from Australia during January or Febru- * ary.

(c) The flour must reach Now Zealand not later than the end of February. "Flour which does not fulfil these conditions will have to pay such dumping duty as is chargeable according to tho relevant facts, the amount of dumping duty being the difference (if any.) by' which the export price is exceeded by the legitimate Australian home consumption price, after duo allowance is made for differences in trading conditions as between export and domestic sales respectively. It is expected that the result of this decision will be that no further business will be done between New Zealand importers and Australian suppliers at what can properly be regarded as dumping prices. Should this result eventuate, the New Zealand wheat-grower and the New Zealand miller will have the utmost protection that can be given under existing customs legislation, and Australian exporters and New Zealand importers will have no legitimate ground for complaint if they now enter into arrangements which render importations liable to dumning duty, or if they have already made irrevocable commitments for importations which will not be exempt from dumping duty under the foregoing conditions."