WHEAT AND FLOUR

Dominion, Volume 16, Issue 153, 16 March 1923, Page 8

WHEAT AND FLOUR

MINISTER REPLIES TO CRITICS defends the embargo ADVANTAGE OF STRONG WHEAT INDUSTRY Tho Government's decision to maintain tho embargo on the importation of wheat and flour into New Zealand has been the subject of sharp criticism, to which tho Minister of Agriculture now replies, deploring the ignorance which he says is displayed in dealing with the whole question.

Approximately 200,000 bushels of wheat is at present held by the State, which was purchased from growers under agreement during the year ended February 28, said tho Minister ot Agriculture (Hon. NV. Nosworthy), to a Dominion reporter last night. The Government had been accused, he said, or overstating the amount of wheat he.d, and of camouflaging the position. As far back as October last, it was agreed that the embargo should be retained, and at that time the present arrangements between growers and millers were not even contemplated, to the Minister’s knowledge That decision was owing to the Government’s being involved in tho wheat business; on tho other hand, he believed that wheatgrowing was a primary industry, that should bo self-sustaining, and that the Dominion should not be dependent on outside sources for food supplies. He had refrained from acceding to a request to state that the embargo should bo retained for twelve months, until he satisfied himself that the resultant arrangements between growers and millers- were satisfactory, not only to producers, but to consumers. Investigation of Prices, “I have had advised those concerned,” said the Minister, “that I will concur in the prices of flour, pcilard and bran proposed to be charged under the agreement, provided millers agree to such prices as were fixed by the Department of Industries and Commerce. after a full investigation and a conference. The accusation that the Government has taken part in fixing the soiling-price or terms between the millers and farmers is quite contrary to fact. One reason given for lifting the embargo is that bakers require a certain proportion of Australian flour for blending purposes. The answer to that contention is that, with the exception of a few tons in 1921, no Australian flour has been landed in New Zealand during the nast three years. There has been no difference in the quality of New Zealand bread, which is admitted to be good. “The price of Australian flour today is, I understand, quoted at from £lO to £ll per ton. f.0.b., Melbourne or Sydney, while the price for consumption within tho Commonwealth is £l2 to £l2 10s. Another factor which materially affects tho price of flour is the price received for by-products. At present pollard is £lO per ton and bran £ll per ton in Australia, while here they afe selling at £8 and £5 respectively.” ”ln a Cleft Stick.” Mr. Nosworthy referred to his breaking off the negotiations in 1921 with the Australian Wheat Board for a supply of wheat to sunnlement the Dominion harvest. Tho price quoted was 10s. IOJd. per bushel, f.0.b., and ho had every reason to believe that the flour offered was part of that rejected bv South Africa. A member of the Australian AA’heat Board admitted afterwards that thev thought they had New Zealand in a cleft stick, and asked her to pay £4-0,000 more for one cargo of flour than they wore asking elsewhere. Australia, having a high market for bran and nollard could take advantage of New Zealand by reducing the price of flour. Cry for Creap Bread. “Tho removal of the embargo would make the 21b. loaf approximately Rl. cheaper that it is to-day. which, after all, should not be the all-important factor when we remember that the encouragement of thg wheat industry is of vital necessity to the people of the Dominion. It has also been stated that bread is dearer than it should be, according to the price that wheat-grow-ers are receiving for their grain. The price of flour has always been fixed after the actual cost of production was thoroughly investigated, and the Government will continue to satisfy itself that onlv a fair and reasonable priee 'is charged for flour, bran and pollard, and that no profiteering is allowed. The majority of people allow the cry of cheap bread and the direct interference with the people’s foodstuffs to blind them to all other considerations. The cheap loaf is as desirable as the cheap dwelling : but to provide either for the whole community at tho expense of unprofitable operations by one section of the population is an unsound argument which could not stand for long. If it were insisted on in connection with wheat, it would moan the end of the business. If we got our loaf at a low price this.rear and had a serious shortage of wheat next year, the net result would be worse'than ever, for bread is not a food which has efficient substitutes. It has been suggested that wo should import from Australia, but it is an improvident proceeding to expose the people to tho necessity of seeking else-whc'-o for their bread. To avoid such contingencies it is imperative that the wheat -grower should receive a remunerative price. Australia's Dumping Ground. The only cure for the conditions created by the late slump and financial stringency was to produce more and become more self-supporting, added the Minister; it must be obvious that one myans to the desired end was to make it unnecessary to import wheat and flour. A Labour member had staled that the Government compelled the people to pay £-100.0001 more than was necessary for their foodstuffs by keeping on the embargo. Such critics, while appearing to consider the consumer, overlooked the interests of thousands of employees dependent on the industry. If this country were to be a dumping-ground for Australian flour, what would happen to thy workers in the industry? Of all industries, wheat--1 growing gave the widest distribution | of its monetary returns. The ramifications of its indirect, aid io other industries were also wide and varied. As a result of sad experience, many i wheat-growers had gone off wheat to other more remunerative lines. They regarded wheat as a gamble. Right up to the stage of stacking the result in any case was uncertain. The community ought readily to admit that

tho wheat grower was entitled io a minimum return for his effort. Present Prices Satisfactory. “Personally, I think that the prices for this season’s wheat are entirely fair and reasonable,” said the Minister, in conclusion. “On the average, the price is 7d. less than last year. The prices agreed on this year are ss. Id. for Tuscan, ss. 3d. for Hunter’s, and ss. sd. for Pearl, or an average of ss. 3d. per bushel.”