FLOUR EMBARGO

Dominion, Volume 16, Issue 172, 9 April 1923, Page 6

FLOUR EMBARGO

MINISTER REPLIES TO LABOUR M.P.’S

“SOME OBVIOUS ERRORS”

WHEAT INDUSTRY MUST BE PRESERVED

To the telegram addressed the Labour members of Parliament to the Prime Minister, regarding the embargo placed on the importation of flour until February, 1924. the Minister of Agriculture (Hon. W. Nosworthy) has replied on behalf of tho Government. “I have no wish,” states the Minister, “to enter into a detailed newspaper controversy on the matter; I shall coiyfi.no myself to pointing out some obvious errors in the allegations made. Australian Mill Prices. “Firstly, in regard to wheat prices, it is almost impossible to ascertain accurately at the moment the prices which have been paid by Australian millers for their wheat supplies, tho prices varying as between the different States of the Commonwealth, and also varying as against pooled wheat and free wheat. The export parity is approximately 4s. lid. per bushel, f.o b. In regard, however, to prices of flour for home consumption, the Melbourne price Is higher than the export price. Flour has been quoted for export as low as £9 10s., f.0.b.. while tho home consumption price varies, as between States, from £ll ss. to £l2. These. latter prices are not subject to any discount, and probably do not cover any cost of deliveries, but are quotations at mill door The telegram from the Labour members does not make mention of the fact that there is a considerable difference between the return to Australian and New Zealand millers, in respect of bran and pollard. The net difference in favour of tho Australian miller has been calculated to reprecent a sum of approximately £1 10s. per ton of flour produced. Price of Sacks. “Another point which has' been lost sight of by the Labour members is tho fact that Australian wheat is quoted and sold ‘sacks in,’ whilst in New Zealand wheat quotations are made on the basis of ‘sacks extra.’ This point makes a difference of approximately 14s. per ton of flour produced A further point has relation to the quality of the Australian wheat, as compared with New Zealand. The Australian miller buys a quantity of wheat, which returns him a higher proportion of the more Valuable product—flour—and is also of such a nature that the Australian miller is able to introduce moisture over and üboye that naturally contained in the grain. This has tho effect of enabling the Australian miller, not only to produce a ton of flour from a smaller ‘Himber of bushels of wheat, hut also enables him to break his flour down by the additon of water. Ths Miller’s Profit. “When all these facts are considered it can easily be proved that the extra profit of £3 per ton, suggested as being made by Die New Zealand miller, is a gross exaggeration, and is not borne out’by the facts. There is ample evidence to show that, if the embargo were not continued, the price of wheat in New Zealand would immediately suffer such a serious fall as to endanger tho future of the wheat-growing industry in the Dominion.”

Mr. Nosworthy has already, in the full statement made to the Press, pointed out the importance of this industry to the Dominion, and the importance of New Zealand’s being self supporting so far as its staple food supply is concerned.