Wheat Board has trading loss of $18M in last year

Press, 12 June 1987, Page 2

Wheat Board has trading loss of $18M in last year

The Wheat Board ended its Hfe'with a net deficit of $5 million, having made a trading loss during the 'last year of $lB million, the Minister of Trade and Industry, Mr Caygill, has revealed. The board’s control over wheat and flour marketing ended on January 31 and its financial affairs were wound up by April 30. ”••• In reply to a question in Parliament by the Opposition spokesman on the arable industry, Mr Denis Marshall, Mr Caygill said that the deficit arose from an accumulated trading deficit of $6 million, the administrative costs of running the board until April ’ 30, and the realisation of reserves. That the board had run down its considerable reserves and ended life in

deficit was'first revealed publicly in “The . Press” on May 8 but at that time' it was thought the deficit would be small.. / : Mr Marshall said , the 1 confirmation by Mr Cay-, gill that the .board lost $lB million in one. year was “absolutely staggering.” “The Government’s handling of the deregulation of the wheat industry has been'a disaster,” he said.: ■ ; v ■ « “The industry, ~ is . in .chaos and South Island farmers have lost confidence so that winter plantings are down,Bo per cent “There is a' widespread belief that the' mills .are. importing wheat i' of < equivalent quality to New Zealand wheat from Australia at a cost which ■ ought to provide . New Zealand wheat from Australia at a cost which

,■. ought rto provide' j . New Zealand an opportunity to compete,. but that mills are discriminating against < domestic producers by refusing :■ io pay ' the = same 'price for New. Zealand wheat < “The Industry is suffering'from widespread mistrust between all sectors. The Government’s handsoff policy is hot working.” Mrk 'Marshall said a National Government would bring all parties together to sort out their : differences and initiate discussions with Australia so that, imports of its wheat did not destroy the New Zealand industry. ' There were precedents for such discussions and agreements, he said, when New Zealand's dairy and meat industries had agreed not to flood the Australian market