HIGH FOOD PRICES IN AUSTRALIA

Dominion, Volume 11, Issue 39, 9 November 1917, Page 6

HIGH FOOD PRICES IN AUSTRALIA

INTERSTATE COMMISSION'S REPORT 'file Interstate Commission, in its report on the price of bread, stated that a lower price than 4s. 9d. per bushel f.o.b. for lvheat, which'in practice averaged for Victoria 4b. 2d. on tho faun, would not bo just to the producer, who, in the previous harvest, lo3t almost all his crops. Still less would it provide inducement to the farmer to keep up his output. The commission found that tho filing of prices has had tho effect of killing- out gambling with this necessity of life. The findings of the commission in regard to meat are only as far as Victoria is concerned. Evidence in the other States lias yet to be takon. The replies to the questions submitted by the Prime Minister were as follow:— (1) Causes of tho increase in the puce of meat. , , , . (a) Tho heavy losses of stock during tho drought of 1914-15 and the consequent shortage of cattle and shoep. (b) The operation of tho- Queensland embargo, as described in the report. (c) The increased cost* of graziers and farmers in production . (2) The extent to which tho increased costs of raw material and.of labour ar« responsible for higher prices. Considerable increases in wages have takon place—(ft) to the farm and station hands; (b) in droving; (c) k shearing; (d) on railways; (e) slaughtering and handling) (f) batcher shop employees; (g) carters and drivers. The sum total of these must consider; nbly affect the final cost of meat to the consumers. It is impossible, to dissect the percentage of increase m the, price of meat that is clue to increases in the cost of raw material and wages. (3) What effect, if any, the export of meat oversea has upon local prices? Except in Queensland local prices are higher as a result of the export of beef from that State which could otherwise L-reatlv relieve the markets of other States, but tho wliole of that export.is for war uses As to mutton in Victoria, there is in normal times no export till tho season of (lush supply brings tho prices down. At present tho want, of shipping threatens to prevent the.usual export. While export prices for beef and mutton in normal times may tend to keep local prices up to London parity production would be seriously reduced without the export-trade, and eventually, this diminution might lead to k to which the increase of prices is due to exploitation of the public through the operations of rings, combines, and manipulation of tna D The oommission is satisfied that there is no combination among farmers, graziers, stock and station agents, wholesale dealers or butchers in Victoria either to keep back stock or maintain prices. Two more excerpts from the report a '(l) In Sydney the price of meat is regulated by the Necessary Commodities CommsTion, vet while tho pre-war (July, 1914) prices of beef and mutton were higher in Melbourne than Sydney, tne present position (March 1017) is reverstd the Melbourne, prices bßing in each case lower than Sydney. (•>) The immediate cause of the mgn nrioes is the scarcity of stock at present coming forward. In normal times Vicfnria does not produce enough cattle for Hs own consumptin. The deficiency is made up by stock from New South Wales i Queensland-is at present par lally sealed iin as a consequence of that States em-. '■K"-» !t i 9 Mua i ly ter r d Hw^ Queensland Government agreed with tie Stal Government to sell tho whole of the exportable surplus of moat at an agreed price. The precise meaning of the M&le™n»l™ta not known to tl* commission/ but it is understood that the exportable surplus is construed by the Queensland Government to mean not Hie requirements of the whole of Australia, but only what is not required for consumption in Queensland. The Queensland Statute in question is a war measure, and its result lias been that ''« juntos have been, during its opera - Hon, deprived of their normal and natural supply. i Tho Prime Minister (Mr. Hughes) said that the Commonwealth Government was giving the whole of the matters contained in the Interstate report (wliicTi related only to Victoria) its most earnest consideration, and would take wlmtcvcr stops were necessary to deal with the exploitation, profiteering, and any other cause of the undue inflation of" prices.