WHEAT DUTIES TO BE RETAINED

Press, Volume LXX, Issue 21213, 11 July 1934, Page 10

WHEAT DUTIES TO BE RETAINED

Recommendation of Government PROTECTION KOR THE <; ROWERS A"ainst the recommendation <>l the majority of the Tariff Commission that the sliding scale of wheat duties be abolished and flat duties placed on flour and wheat, the Government has declared in favour ol the retention of the duties. In his statement on the tariffs, the Rt. Hon. J. G. Coatcs said that there was no reason to suppose that while the country could give wheat growers some measure of protection, it should not do so. Mr Coales said:--'■Since 1927 New Zealand has had a sliding scale of duties on imported wheat and (lour. On this subject I here has been, and there continues to be, a reasonable and healthy difference of opinion. I need not recall all cf the controversy that lias been sustained, nor the periodic outbursts of criticism that have occurred from time to time: nor is it necessary to recall that even within the most highly organised ana the most articulate of bodies unanimity of opinion has been singularly lacking. For present purposes and' so far as the report of the Tariff Commission is concerned, I merely mention that this is one item of. importance on which the commission itself failed to submit a unanimous recommendation. It may be of interest to indicate briefly the nature of the recommendations of a majority of the commission, and after that 1 shall indicate also the Government's proposals. Commission's Proposal "A majority (three of the four members) of the commission recommend the abolition of the sliding scale ot wheat and flour duties and I lie substitution of flat rates cf hj, .'id a bushei on wheat and £5 la;-; a ton on four. These compare with the present level of duties ol approximately 2s 9d a bushel on wheat and £7 a ton on flour based on Australian prices of 2s lid £ bushrl and £ !>' 7s fid a ton respectively. "The other member of the commission and both the majority and the minority reports will, of course. he published .recommends that, the duties be abolished as .soon as is practicable by progressive reduction over a period of years.

"The Government, having full regard to the report. In the reasoning and In all attendant circumstances, propose that the present sliding scale should be retained and in substantial!'.' its ptescnl form. We helievi; that, on the whole, the existing system has worked well—not indeed lliat it has won universal praise, but as far as can reasonably hj" expected in this human world, it has worked and is working well. That is a view in which, without doubt, the great majority of the community concur.

The Government's View "The contrary view lias been expressed, as I have made clear, by the commission. From their report 1 quote one .senlcnce; - '"'... V'c ;ire unable to see any reason why the wheat farmer should not, like most other primary producers, be subject to the vicissitudes of the world price, level.' "That expresses a sentiment with whicli sve clo not agree. Our view is that the removal of the protection that has been to wheat growers would menace an industry which New Zealand cannot afi'ord 1o have menaced. It is unfortunately true that the vast majority of our farmers have, in recent years of depression, been exposed to a severe economic bli/.zard. Docs it follow from this that wheat growers whom wi are in a position to some extent to safeguard should be similarly ex-posed? We think not. "The recommendation of the Government then ir, that tho present, system of wheat and flour duties should bo retained."