MULING OUTLOOK

Evening Post, Volume CXII, Issue 3, 3 July 1926, Page 19

MULING OUTLOOK

WHEAT-GROWERS .INTERVENE

SAFEGUARDING NEXT HARVEST

LIMITED IMPORTATION URGED,

(By Telegraph.— Press Association.) CHRISTCHURCH, 2nd July. We consider that the Government should reconsider the attitude it has taken up on the wheat and flour question, and allow flourmillers to import sufficient wheat on terms that will permit them to keep their mills going until November, at any rate. The Government could have the safeguard that millers would guarantee to cover the full cost of such importations, ' which would be subject, however, to remission of duties and to grind the grain into flour without any profit to themselves.

This statement, embodyiug an important proposition, was made by Mr. F. G. Horrell on behalf of a number of men interested in the flourmilling industry, who visited the "Sun" newspaper office this morning. All . were whiat growers. , Messrs. Horrell and H. Talbot, members of the .party, are. probably the two largest wheat growers ip North Canterbury, and they explained that their financial interest in a rise of Id or 2d per bushel in wheat far outweighed any possible dividends from flourmilling. "The wheatmilling industry is approaching a crisis," said Mr. Horrell. "The average time that mills in Can-' terbury can carry on is two months in the present circumstances." Mr. Horrell said that his proposition to give the mills a chance to run until November would mean that there would be a minimum of hardship in North Canterbury. "There are about twelve mills, employing about 80 skilled men," he said, "and it would be unfortunate if the employees were thrown upon the labour market at this time. Buying would have to be done in a large way by tho Government under cash guarantees by the millers under a compensation scheme by which the cost would be proportioned among the North and South Island millers. The scheme could be controlled, no stocks being carried over into next season, so that growers who now have sown wheat would be protected. Growers who still are. holding wheat would have ample time to quit their stocks before the arrival of imported grain."

Before detailing the situation, Mr. Horrell explained that he and several members of the party, including .Mr. Talbot, held shares in the North Canterbury Milling Co., Ltd. -He desired to make that point clear. He held 500 shares, 250 being paid up, so that his holding was not large. Mr. Tallot heTd less.

NEARING A CRISIS,

"There is a feeling that' the milling industry is rapidly approaching a crisis," said Mr. Horrell. "The Minister of Agriculture has announced that he intends, to let things take their course. If, however, he does not reconsider the remission under safeguards of the duty on wheat an unfortunate position will arise. It is not a question of bluff. The millers cannot mill imported wheat at present and carry on." "The present position is that unless there are further . importations of wheat and flour," continued Mr. Horrell, "all supplies in the Dominion will run out. in the early part of September, leaving the Dominion in need of five months' supplies,, not three months, as stated by Mr. Hawk en, for new grain will not be available for milling until February." • ■ After making a statement to the effect that the.mills in North Canterbury could run only, on an average, for two months longer, unless they obtained fresh supplies of wheat, Mr. Horrell pointed out that the effect on the un- y employment situation was but one adverse aspect. There would be a loss of bran and pollard. "The facts are quite clear," added Mr. Horrell. "The Minister says he will let things take their course, but we are here to see if the question cannot again be discussed and what will be a catastrophe prevented. We want to stick religiously to the present prices of wheat and flour, which will prevent any rise in bread. We want to see men kept in employment and the mills kept running, so, in all the circumstances, we suggest that the Government should reconsider the whole question. " GEE AT ACBEAGE SOWN. Mr. Talbot explained that for the past twelve years he had harvested an average of 12,000 bushels a year, his return on one occasion reaching 20,000 bushels. He supposed that he was the largest growth in North Canterbury. "What I am concerned about mainly," he said, "is the position for next season. If millers have to close their mills they will lose their selling connections, so that growers will be worse off when they come to consider offers by millers for their wheat. We have sown for the next season what appears likely to be a. record acreage. What is going to be done with all our wheat?" ' ' ,- Mr. Talbot suggested that it was imperative in the interests of the industry that representatives of millers and groweTS should have a round-table talk and arrive at a better understanding. At present there was an atmosphere of mistrust. The millers in particular should lay their cards on the table and practically open their books for inspection. If confidence were built up again the result was assured. The conference could.make arrangements so that, with Government protection, millers could guarantee to take all of next season's wheat as soon as it was in milling condition. It would be hard to say what might not take place in an open market, for the millers in such circumstances would not be human if they did not take advantage of an over-supply. They would only buy as they required. The wheat grower, under present conditions, had to wait almost twelve months for his money., He would be forced to sell to meet his obligations, and so would have to take low prices under open market conditions. '_ Mr. J. G. A. Ruddenklau, of Oamaru, who was a member of the party, expressed approval of the scheme. He said the farmers would jump at any reasonable offer by the miners for their next season'• wheat, provided all were taken that was in good milling condition. In a general discussion the members of the party expressed the opinion that the Wheat Growers' Association, now in process of formation, was the proper body to conduct negotiations for the conference with the millers.