WHEAT FROM AUSTRALIA

Press, Volume LXXXIII, Issue 25321, 22 October 1947, Page 2

WHEAT FROM AUSTRALIA

REPLY TO CRITICISM OF N.Z. DEAL

“VERY GOOD BARGAIN MADE ” (From Our Parliamentary Reporter.) WELLINGTON, October 21.’

Criticism of the New Zealand Government’s wheat deal with Australia was replied to by the Minister of Industries and Commerce (Mr A. H. Nordmeyer) in the House of Representatives to-day. Mr Nordmeyer said that a very good bargain had been made by his predecessor, the late Mr D. G. Sullivan. It had to be remembered, however, that the wheat was bought on a five-year contract. Five shillings and ninepence a bushel was an excellent price, considering the price the Australian Wheat Board was able to obtain from other countries.

On the other hand, the price New Zealand might be paying at later stages of the contract might oe higher than the world price. Mr J. N. Massey (Opposition, Franklin): Do you hope the price of wheat will fall?

Mr Nordmeyer: I know it must fall m the next few years. Prices are bound to recede. When prices do recede, it may well be found that the present contract is not as disadvantageous to Australia as it now seems.

The Minister had been replying to comment by Mr T. L. Macdonald (Opposition, Wallace), who said that many Australians were highly critical of the deal, and that, m defence, an Australian Minister had said that Australia was receiving something in return. He would like the Minister to say what that something was. Mr R. G. Gerard (Opposition, Ashburton) said that the estimates showed £707,000 as a subsidy for the carriage of fertilisers and lime and farm produce, but was not the lime and fertiliser subsidy to be taken off? Mr Gerard asked the Minister what additional subsidies were being paid on materials bought by Australia to compensate for the subsidy Australians were paying for their wheat bought by New Zealand.