STOCK FOODS.

Press, Volume LXVII, Issue 20302, 30 July 1931, Page 10

STOCK FOODS.

IMPOSITION OF DUTY. HUE6TIONS IN THE HOUSE. CABINET'S POLICY EXPLAINED. 1 hum Oca Parliamentary Ukpoutku.'; WELLINGTON, duly 2U. Hour-millers in the South Island uerc reported in the House of Representatives to-day to have refused to buy wheat from southern farmers who, on a.-count of this action us well as itourdumping and exchange disadvantages, anticipate a heavy surplus this year. The question was first raised by Mr .!. A. Young (IL, Hamilton), who directed a question to the Minister for Customs regarding stock foods. He asked whether it was tho policy of the f'overnment as was done at present, to • ompel importers of duty-free goods «uch as bran, pollard, and barley for itock foods to pay to the Customs authorities an import duty equal to the mount of the bank exchange in-favour uf the importer, thus preventing local importers from passing on to theit . ustomers among farmers and stock and poultry raisers the benefit of the saving arising out of the bank exchange rate operating in favour of New Zealand. He asked in the event of this not being the policy of the Government, that the Customs Department be instructed to cease the practice and givo effect to the npirit of the law, which provided for the admission into New Zealand of duty-free goods. The Prime Minister, the lit. Hon. CI. W. Forbes, said the law now in force provided for the admission free, under the British preferential and general tariffs of bran, pollard, and barley, to !>e used as stock foods. It also authorised the Minister for Customs to impose a dumping duty 09 such goods in Ihe interests of the primary and secondary industries of the Dominion. I!, would be obvious that if tho exchange) premium of over 18 per cent, was obtained by importers of Australian goods, such as eggs, pork, oatmeal, or onions, without any restrictive action, tho result would "be to encourage the sale of «iuch goods in the Dominion rather than local products. In cases therefore, whore it was considered necessary in the public interest, a dumping duty equal to the amount of the exchange premium obtained in excess of 5 per cent, was imposed on bran and pollard Imported from Australia. So far this aetion had not been taken with respect to barley imported for stock food.

Government's Policy. After several members had criticised the Prime Minister's reply and Teferred to the wheat and flour duties, Mr Porbos ■mid the policy as far as tho importation of wheat and flour was concerned ivas to protect the wheat-grower of tho Dominion. This policy had been affirmed by Parliament. However, whon rhe exchange rate was met with it destroyed to a certain extent the intention of Parliament to give protection io the growers. It would bo agreed that ihe protection decided upon should be maintained by the taking of necessary ntepa. Bran and pollard were admitted duty free, but it was not proposed ihey should have tho, advantage of the depreciated currency. If that were allowed in respect of any Dominion industries they would bo exposed to competition that was never contemplated. Replying to a question by Mr C. A. Wilkinson (Ind., Egmont), Mr Forbes said if a duty to counteract the exchango rate were not imposed it would mean that instead of tho advantage being felt in New Zealand the benefit would go to Australia. There was no desire to deprive anyone of any advantage that might be had, but it was not intended to allow that advantage to be used to the detriment of New Zealand industry. Mr J. S. Fletcher (Ind., Grey Lynn); The merchant gets it free, but tho farmer does not.

Mr Forbes said the farmer got the article free of duty, but, not with the added advantage accruing from the depreciated exchange rates. Members had consistently pressed for protection for loeal industries, but now it was being given they were urging it should be taken away. Members: Why give it to merchants? Mr Forbes said it was better that the benefit should be given to the New Zealand merchant than to the Australian.. Wheat Purchases. Mr J. A. Maephcrson (U., Oamaru) said it had been reported to him from the South that millers had ceased buying wheat from farmers there, and fie. asked the Prime Minister to investigate the position. Large quantities of flour were being brought into ■ this country and this, added to the exchange problem, was embarrassing the industry. Millers had followed this up by taking advantage of tho farmers who were of the opinion that there would this year be a surplus with disastrous results to the growers on account of the absence of offers from millers. He hoped the industry would be safeguarded as l New Zealand still relied upon local production for it 3 supplies of bran and pollard.

INTEREST RATES. BUILDING SOCIETIES MAKE REDUCTIONS. ItMM ASSOCIATION TtLiIiAAU.) WELLINGTON, July 29. The principal Building Societies in Iho Dominion have agreed to lower the rates of interest paid on deposits by } per cent, as from August Ist. A corresponding reduction will be made in the rates of interest on new loans made by the societies: The reductions are conditional upon other financial institutions acting similarly.