Wheat levy legislation introduced to House

Press, 9 October 1987, Page 41

Wheat levy legislation introduced to House

By

OLIVER RIDDELL

In Wellington Legislation to impose levies on people engaged in wheatgrowing, flourmilling, baking and related industries — the Wheat Levies Bill— has been introduced to Parliament The levies will provide money for research into the growing of wheat and the manufacture of wheat into flour, bread and other related products; and will fund the activities of United Wheatgrowers, Ltd. The research levies will be imposed on four groups of people: • The producers of any

wheat grown in New Zealand and sold or delivered to a flourmilier or grain merchant • People carrying on business as flourmillers. • The purchasers or other people taking delivery of flour or wheatmeal from a flourmill. • The purchasers or other people taking delivery from any importer of flour or wheatmeal, or of flour or wheatmeal imported into New Zealand. This legislation will replace the Wheat Research Levy Act, 1974, and provides that levies will be at rates determined by the Wheat Research Committee after consultation with

representatives of other proprietory interests . in the wheat industry. This replaces the previous provision that the levies be set by the Minister of Science. The bill also provides a levy for United Wheatgrowers and replaces a levy collected under the Wheat Board Act, 1965. This levy will be calculated by United Wheatgrowers on the recommendation of its Electoral Committee, and requires 75 per cent voting support. The levy will have a maximum rate of $7.50 a tonne. The Opposition spokesman on agriculture, Mr

John Falloon (Nat, Pahiatua), said he was concerned about clause 28 of the bill. This sets out the purposes on which the United Wheatgrowers* levy may be spent These are:— 1. To promote, develop and improve the wheatgrowing industry; 2. To fund the Dominion office of Federated Farmers; 3. To enter into insurance contracts to protect wheatgrowers against loss or damage to crops; 4. To promote and conduct research and other scientific work; 5. To pay for work done for United Wheatgrowers;

and i 6. Such otter purposes as will further the interest of wheatgrowers. Mr Falloon said the bill represented supplemenary minimum prices for wheatgrowers. It was like the $25 a tonne subsidy the Government had hastily found at election time when it looked as if the mess it had created in the wheat industry was going to cost it the Waitakl seat, he said. This was a political bribe. Imported Australian wheat was not to be levied and this was another example of the Government kowtowing to Australia.