WHEAT HARVEST

Dominion, Volume 19, Issue 99, 21 January 1926, Page 6

WHEAT HARVEST

CONTROL ABANDONED MARKET TO TAKE ITS OWN COURSE GOVERNMENT RESCINDS DECISION Control of the approaching Wheat harvest will not now be undertaken by the Governmyit. In view of the decision arrived at by the conference of growers at Ashburton on Tuesday, control will be abandoned and the market will be allowed to take its own course behind the protection of the tariff, which, however, may at a later date require to be adjusted or modified as may be found necessary.

The foregoing is the effect of an announcement made by the Minister of Agriculture (Hon. O. J. Hawken) yesterday.

“On December 8,” said Mr. Hawken, “an announcement was made to the effect that at the request of a meeting of representatiaves of wheat growers and others held in Ashburton on De cember 3 the Government had agreed to adopt control of the marketing of the approaching wheat harvest and to import the necessary additional supplies from overseas. This action followed upon an agreement between growers and millers in May last that millers would, if protected against fluctuations in outside markets, purchase milling wheat from growers at 6s. 5d., 6s. 7d., and 6s. 9d., f.0.b., sacks extra. “For various reasons the meeting of growers on December 3 decided that the satisfactory method of carrying out the spirit of this tentative agreement would be by means of Government control, and their request for control was made accordingly. “The meeting also asked that Government should take control for a subsequent period of three years, and suggested that the price for the first of such three years should be on the basis of 7s. per bushel for Tuscan wheat.

“No indication was given that the request for control of the approaching harvest was dependent upon control being agreed to for subsequent years. At a later date, however, when it was made clear that the Government would not agree to a continuance of control, growers expressed a desire to rescind the decision in favour of control at the suggested prices for this year, and have, in view of the world market levels, sought free market conditions.

"A meeting of growers was held on January 19 at Ashburton, and they have now cancelled their request of December 3 and have asked for a free market with duties imposed on importations. “The Government has not sought control, and it decided upon such action only at the request of the parties. Such request now having been cancelled, the Government has agreed to abandon control and to al-, low the market to take its own course behind the protection of the tariff, which, however, may at a later date require to be adjusted or modified as may be found necessary.

“The action necessarily taken by Government in preparation for the institution of control,” added the Minister, “will be cancelled, and Orders in Council prohibiting the importation of wheat and wheat products and' prohibiting private dealing in new season’s wheat will be revoked.. at an early date.

POSSIBLE INCREASE IN PRICE OF FLOUR

By Telegraph.—Press Association

Christchurch, January 20.

If, as the result of the wheatgrowers’ conference, the Government reverts to the free - market, there is a possibility that the price of flour will be increased. Mr. Corson, chairman of directors of Distributors, Ltd., last night said that the maximum price for flour had not been fixed, but the millers had agreed with the Government to sell at £lB a ton if the prices offered for wheat were maintained. “If the farmers are going to get, say, 7s. 3d. a bushel for wheat, that will mean an increase of about £2 10s. in the price of flour, and a penny will be added to the price of the 41F loaf.”