Wheat institute goes for higher levies

Press, Issue 33842, 14 May 1975, Page 19

Wheat institute goes for higher levies

The Wheat Research Institute is seeking an increase in its levies on growers, millers, and bakers.

It wants to raise the levyi ion growers from 12 cents to|: i 14 cents a tonne, and the levy on millers and bakers’ ) from 18 cents to 20 cents a tonne of flour produced oi ’ used. The money is used to finance research on behalf of the grain industry. The ’ Wheat Research Committee j was told yesterday the in-!' crease was needed to keep pace with inflation and to; . clear a long-standing deficit! in the institute's account. The institutue's director! (Mr R. W. Cawley) said the proposed increase was based . on a prediction by the Mon-( etary and Economic Council! ! that inflation could be reduc-j 1 ed to about five per cent; i within the next two to three; ! years. The higher levy would! give the institute $84,000 in;

; the next financial year — an i I increase of $B4OO. If the new levy was maintained and inflation reduced ito five per cent, the inistitute’s deficit of $11,178; !would be cleared by the. 1977-78 financial year. If the levy was not changed, the deficit would i remain, even if inflation (dropped to 2.5 per cent. Dr H. C. Smith, chairman lof the Wheat Variety Comjmittee, suggested an auto-! matic formula be worked ) out whereby the levy could 'be stablised as a percentage of the ruling wheat price. Mr E. R. W. Reed, of the; (Wheat Board, said this I might not work. If the price I of wheat remained much the (same, as it had for the last! ;few years, the institute; •would get no extra money) (while still having to main-’ i tain its costs.