Govt M.P.s Critical Of Wheat Price Decision

Press, Volume CVIII, Issue 31588, 27 January 1968, Page 19

Govt M.P.s Critical Of Wheat Price Decision

The Government members of Parliament for two of the largest wheat-growing areas in New Zealand—Mr H. E. L. Pickering, Rangiora, and Mr C. C. A. McLachlan, Selwyn—yesterday criticised the Cabinet’s decision to cut basic wheat prices for 1969.

Mr Pickering, who has 100 acres of wheat growing on his property this season, said he would certainly consider producing something other than wheat next season.

Both members said the Cabinet had not consulted them before making the de-

cision to cut prices by 10c a bushel next season. They said they both felt, as representatives of wheatgrowers, that they should have been consulted. Mr Pickering said the announcement by the chairman of the Cabinet Committee on Wheat Prices (Mr AdamsSchneider) was “both untimely and very disappointing.” “Farmers are already com-

mitted both for extra equipment and storage space and their future is now uncertain,” he said. “This cut in price is poor reward for extra effort, and I wonder how other sectors of the community would respond to similar reductions, such as reduced wages where there is over-supply of labour.” Farmers had responed well to the Government’s call for more wheat and had just about achieved the objective. Wheat Imported Mr Pickering said while he appreciated the reasons behind the Government’s action there was no real evidence to substantiate that there was over-supply of wheat. New Zealand was still importing wheat from Australia, and the amount of imports might become greater because of reduced prices. He said some farmers had spent up to $6OOO on harvesting equipment and hundreds to thousands of dollars on sheds for wheat storage. They would now find it all the more difficult to repay the money borrowed for these investments. Farmers’ Costs Mr McLachlan said farmers in the Selwyn electorate had been burdened with considerable capital outlay to provide additional wheat storage facilities because the millers demanded that over two-thirds of the crop be stored on the farms.

“I am not so sure that this much discussed surplus of wheat is going to become a reality as many wheat crops this year are not yielding up to early expectations,” he said. “Surely we can face the problem of the disposal of surplus wheat when it exists rather than anticipate it. “Farmers just cannot go on absorbing additional costs and at the same time take reductions in the prices they are paid for their commodities. I intend to make further representations to the Government along these lines Immediately,” he said.