FREE MARKET

Dominion, Volume 19, Issue 98, 20 January 1926, Page 10

FREE MARKET

CANTERBURY WHEATGROWERS' DEMAND

INCREASED DUTY ON

FLOUR

OBJECTIONS TO GOVERNMENT CONTROL Bv 'I; ;rafh—Press Association Ashburton, January 19. A free market for wheat with an increased duty on imported (lour was the decision of a conference of wheat-growers, repre. renting all parts of Canterbury, held here to-day.

When the proceedings opened, under the presidency of Mr. John Brown, president of the Mid-Canterburv Executive of the Farmers’ Union, 83 delegates were present, the number being' increased later to 110 Ihe meeting tasted for 44 hours, every aspect of the subject being discussed.’ Mr. G. W. Clinkard, representing the •Department of Industries and Commerce, said that :f they now wanted to reverse the position the Government would probably not enforce control. The chairman said that a good deal

mjr;ed on the proposal to increase duties. It was a matter for Parliament and not Cabinet, and so this season’s wheat could not be affected. It had been suggested that the conference today would'-agree to control with prices increased to 7s. 3d. It was suggested f hat prices at 7s. 2d., 7s. 4d., and 7s. 6d. would mean an increase of £2 to £2 10s. in the price of flour, but the Minister had stated definitely that he would not agree to control ' at prices above those of the May agreement. If they had free trade with'duties, there would be no embargo. The chairman read a letter from Messrs. Fleming and Company, millers, of Invercargill,

expressing the opinion that a free market would not be in the best interests of farmers, as 6s. Id. per bushel would be as much as could be offered. Mr. Smith (Cast) said that aftet

wheat had gone to the mills, the Government imported wheat free of duty. Then there was really no dutv at all. Mr. Clinkard said that it has been agreed that the Government should import wheat and sell it at such rates

as would enable the millers to carry on against Australian mills. The people who were hurt were those who “sat” on their wheat, hoping to sec prices rise. (Laughter.)

_ Mr. G. Sheat said that the delegation that Went to Wellington had received an offer of 6s. Bd., 6s. 10d., and 7s. from the millers. If satisfactory supplies were grown the Minister did not want to control wheat, but did it at their request. Prospects were bright then for the crop and there had been no dissension until others thought they could get better terms. Mir. Burgin said that the bone of contention was the duty to be put on to imports to protect local growers. He knew of merchants offering growers 7s. on condition that there was a free market.

Mr. D. W. Westenra (Dunsandel) moved that wheatgrowers ask ■ the Government for a market free of control and that the Government afford the industry reasonable protection. Mr. Burgin seconded the motion.

Mr. L. Talbot (Teniuka) said that the industry should stand on its merits. All they wanted was protection, not on wheat so much as on flour. They should ask for a greater duty on flour. M“. Carpenter (Rangiora) moved an amendment that the existing duties be retained.

Mr. G. W. Leadley moved a further amendment that the words after “control” be deleted, as he desired the two questions discussed separately. After luncheon, Messrs. Westenra and Leadley agreed on a motion in the following form: “That as the Government has refused to take control after this season, growers ask for a market free of control this year, and that the present duties on wheat be retained.” In reply to a question, Dlr. Clinkard stated that Australian wheat landed at Auckland would cost Bs. 7|d., sacks in, with duty. Flour could be landed for £lB 155., including duty. Mr. Carr (Methven), ’stated that if they rejected control they would get a free market, but the duties would not go on and they would be at the merev of speculators and millers. He did think they could get an increase in duties, and he -warned them against dropping the substance to grab the shadow. In the course of further discussion Dlr. Leadley asked: “How do we know we are going to get a better price or a free market?” It was, he said, only because they thought they could get more for their wheat, that they did not want control. If thev went ' back on their agreement the millers would not be inclined to meet them in the future. Finalyl Mr. Westenra’s motion was carried in two parts, the first asking for a free market, and the second that an extra £1 per ton be placed on imported flour.