Aim To Cut Wheat Transport Costs

Press, Volume CVIII, Issue 31657, 18 April 1968, Page 30

Aim To Cut Wheat Transport Costs

(New Zealand Press Association)

WELLINGTON, April 17,

The Minister of Labour (Mr Shand) said today he confidently believed that Government policy on wheat prices would lead to a dramatic reduction in the cost of transporting wheat within New Zealand.

The Government had decided as a matter of policy to aim, in fixing the price of wheat, at self-sufficiency and the saving of overseas exchange. he said. The Minister was opening the Manawatu Mills’ new flour mill at Palmerston North.

This year, for the first time for more than 30 years, it was expected that New Zealand would be self-sufficient in wheat, said Mr Shand. The Wheat Board and the Government had been seriously concerned at the possibility of an embarrassing surplus of wheat next year. “The price to the New Zealand grower since devaluation is not substantially different from the price which the Australian grower receives at the farm,” he said. “However, because of lack of suitable organised bulk transport the cost of bringing South Island wheat to the North Island is still rather more than twice the cost of bringing a similar quantity of wheat from Australia.” Mr Shand described this situation as “ridiculous,” but added that it had arisen because there had not been for many years an adequate volume of traffic in wheat to make practicable the establishment of bulk handling facilities.