WHEAT INDUSTRY

Dominion, Volume 30, Issue 191, 10 May 1937, Page 11

WHEAT INDUSTRY

Government Negotiating With Millers COMMENT ON PLAN UNWISE AT PRESENT By Telegraph—Press Association. Christchurch, May 8. The remarks of the chairman of the Northern Roller Milling Co., Ltd., made at the annual meeting of that company were referred to by Mr. R. J. Lyon, chairman of the Flour Millers’ Society, a body which comprises all millers in New Zealand. Mr. Lyon said ho was somewhat surprised at the report that had been published in view of the fact th.at certain negotiations had been proceeding during the past month or two between millers and tlie Government in regard to the various matters dealt with in the Northern Roller Milling Company’s report. Decision had not yet been reached, and it would be unwise to make any further comment while the matter was sub judice. Mr. Lyon added that at the inception of the scheme in February of last year each mill was allocated trade on the basis of the average manufacture of each mill during the previous three years. That was the only fair basis that could be adopted. It was certainly true that in a number of cases mills had, prior to 1936, Installed machinery and plant for dealing with a much larger trade than they had previously done, but the point was that there was onlv a certain amount of trade in the whole of New Zealand and nobody could get more than their fair share. The Government had assisted by strictly controlling the imports of, flour and any increase caused by this was shared by each mill in New Zealand, lu February of fast year the basis of working was adopted for the year and it was hoped this might give a fair return of the capital invested in the industry. Millers took their full part in these discussions and agreed to abide by the scheme as dratted. Now that a year of practical working had been completed, certain results had come to light, and, while millers generally approved the wheat and liour scheme, some adjustments of the cost of manufacture and profit appeared to be necessary. “In all the discussions and negotiations with the Minister of Industries and Commerce and his department during the past year the millers have appreciated the fair manner m which the various problems have been considered,” said Mr. Lyon, “and it would be unfortunate to prejudice the present negotiations by uninformed comment.” ______