Inquiry into wheat marketing set up

Press, 3 October 1985, Page 3

Inquiry into wheat marketing set up

Wellington reporter

Just how wheat should be marketed from 1987 to 1989 is the subject of an inquiry set up by the Minister of Trade and Industry, Mr Caygill. He has asked the Wheat Board to receive submissions from interested parties, and to report back to the Government by February 28, 1986, so that a decision can be made before planting for the 1987 season begins.

With the abolition of flour quotas from February 1, 1987, the removal of Wheat Board control over bran and pollard and domestic wheat for non-flour milling purposes in 1987, Mr Caygill said there had been some debate about wheat marketing for 1987-89. At one stage it had been suggested that the Wheat Board act as a form of grain exchange. However, some of the proposals for the exchange would have been as highly regulated as the system from which the industry was now moving, he said. The Wheat Board review of how wheat could be handled during this twoyear period ought to attract submissions from bodies such as the Feed Manufacturers’ Association. Concern had been expressed that on the removal of controls over flour, at present planned for February 1, 1987, supplies of bran and pollard might become difficult to obtain, Mr Caygill said.

He was confident that the removal of regulations would improve the availability and flexibility of supply compared with the controlled system of supply that had been used for many years.

Feed merchants might also be concerned that in the absence of regulations, larger members of the industry might misuse their power in the market

Such anti-competitive acts were dealt with in the Commerce Bill now being considered by a Parliamentary select committee, Mr Caygill said. This legislation was intended to ensure that conditions for effective and workable competition existed, and to prevent the abuse of monopoly power.

Apart from the supply from domestic sources, it was also proposed that it should be possible for anyone to import bran and pollard once it was removed from Wheat Board control.