WHEAT DUTIES

Dominion, Volume 23, Issue 6, 2 October 1929, Page 12

WHEAT DUTIES

CONDEMNED BY POULTRYFARMERS

FREE IMPORT WANTED • AN “EGG WAR” The admission to the Dominion of poultry wheat duty free was urged by representatives of the poultry industry giving evidence before the Wheat Committee yesterday, as their occupation, it was stated, had practically been killed by the duties. Master bakers who gave evidence maintained that the present price of bread was not excessive. The first witness for the day was Mr. G. S. Bates, of Hutt Valley, who gave further evidence on behalf of the New Zealand Poultry Association. He stressed the fact that the industry had become unstable on account of the generous protection given by the State to the wheat-grower. A Two-edged Sword. “In the past," said Mr. Bates, “we honoured our pledge to fully supply the Dominion’s egg needs (shell and pulp), and built up a profitable export trade, only to find our expansion turned into a two-edged sword by the imposition of the sliding duty on wheat. ... We contend that wheat, and its offals used for stock purposes, should be exempt from duty, and if necessary, a subsidy be paid instead. . . . The other alternative is that the poultry and dairy industries be allowed to import, duty free, sufficient wheat for their requirements.” Witness added that the duty had disastrously affected the export trade in eggs. At present there was only a difference of threepence a bushel in price between first-class milling wheat and fowl wheat, whereas at their real values the difference should be one shilling.

As to pollard, a recent good purchase of Australian pollard was £8 15s. fid. a ton, landed at Wellington, as against £9 2s. 3d. for the local article, the average price being about £9 14s. He suggested that the Wheat Pool should be asked to set aside some of the surplus wheat for North Island poultry farmers at a parity price with the South Island quotations.

More Important than Wheat.

Examined by Mr. D. Jones (Reform, Ashburton), witness said he considered the poultry industry more important than wheat. Mr. Jones: Even if the evidence discloses that there are only 70 people making their living out of poultry in the North Island, as against 6000 people in the South and North who grow wheat?—“l would like to see those figures first” t . What facts have you to prove the statement that the sliding scale of duty has been disastrous? —“Because, during the last two seasons, the price of wheat here has been considerably higher than the price in Australia.” Mr. F. Waite (Reform, Clutha) : I understand the industry does not worry a great deal about the duty on bran and pollard?—“Not a great deal.”

You stand for trade within the Empire?—“Yes, but the conditions governing the importation of eggs and pulp from Hong-Kong render it impossible for us to compete.” What reduction in wheat prices would make the North Island industry pay?—“lt is difficult to get at, but present egg prices are entirely fictitious. There is an egg war on, and eggs are quoted by the grocers as a ‘cut’ line.”

Mr. A. G. Mumby, of Heretaunga also gave evidence on behalf of the poultry farmers, affirming that the industry had received the biggest knock it ever got from the sliding scale of duty on wheat. He stood for the law of supply and demand. He maintained that eggs could be produced in New Zealand at a reasonable price. The Rev. C. L. Carr (Labour, Timaru) : What would you substitute for the sliding scale of wheat duty?— “Admit duty free all wheat not fit for milling.” To Mr. H. R. Jenkins (United, Parnell), witness admitted that, the Governments Lad been very sympathetic towards the industry. Mr. D. Jones: What did eggs realise last year on the London market? — “Ninepence a dozen.”

With free wheat here, could you compete with that price?—“No.”

Witness further declared that the poultry farmer was never going to be well off, but would simply make an ordinary living. To the chairman (Mr. J. A. McCombs, Labour, Lyttelton), witness said the return per hen per annum was* about 150 eggs, and the average cost of those eggs would be —wheat duty included —about Is. 3d.

Bread Prices Not Excessive.

Mr. J. E. Barker, secretary of the Master Bakers’ Association, considered that the present prices of bread were not excessive. While the cost of production was about the same, the profits had decreased on account of the extra ingredients that were now used in breadmaking, notably milk. Delivery conditions varied throughout the Dominion, and to-day the baker who delivered 185 loaves per day was doing exceedingly well.

Mr. J. A. Clegg, representing the Denhard Baking Co., Wellington, gave confidential evidence as to the baking trade.

Only New Zealand Flour Used.

Mr. T. S. Searle, Dunedin, ex-president of the Master Bakers’ Association, regretted that so much money went out of the Dominion for wheat, as he made a good loaf out of New Zealand flour, and used no imported article. With the progress of research in regard to wheat production there would be no need soon for New Zealand to import one pound of foreign flour. There was no prejudice in favour of the Australian article, but some bakers considered that it was much stronger in protein food value than the local flour, and that it made a better loaf.

Evidence was also given by Messrs. H. P. Burton and G. K. Matheson, members of the Auckland Master Bakers’ Association, the latter declaring that he used only New Zealand flour.

Mr. D. Jones: It appears that it costs as much to deliver bread to-day as the farmer gets to grow wheat? Mr. Matheson: A baker’s shop to-day is worth nothing. I kept one for some years, but not now. Mr. Jones: It is evident that the farmer must get more to grow wheat. The inquiry, which has been protracted, is drawing to a close. It will be resumed this morning.