A SLIDING SCALE

Evening Post, Volume CXIII, Issue 126, 1 June 1927, Page 10

A SLIDING SCALE

GOVERNMENT'S PEO-

POSAL

LEGISLATION NEXT SESSION

I The Government proposes to ask Parliament to alter the present duties on flour, providing for a sliding scale of duties, so fixed that the rate of duty will increase when the price outside New Zealand falls and decrease when world prices increase. This was foreshadowed in the following statement handed out for publication by the Prime Minister yesterday :;— "She Government has for some time had under consideration the question as to the best method which can be adopted to encourage the growing of wheat in the Dominion. In connection with this matter, the interests of both producers and consumers must be considered. If on the one hand a policy is adopted under which, in any year, or series of years, the price of wheat to the grower in New Zealand is below that necessary to give him a reasonable return, this would have the effect of restricting the area used for the production of wheat. On the other hand, if in any year, or series of years, the price of wheat is relatively high, this must have the effect of causing high prices of bread and other wheat products to the general consumer. "It is desired, also, that arrangements should be made under which the conflicting interests of those affected can be adjusted without recourse to special Governmental action, such as embargoes, price-fixing, State importation, etc. THE BEST COUESE. "After considering all the circumstances and the possible courses of action, the Government has come to the conclusion that this object can best be arranged by a system of Customs duties designed, on. tho one hand, to enable the grower to obtain a reasonable price for his wheat when world prices are low, and on the other, to keep the cost of bread and other wheat products at as low a level as possible when world prices are high. "it has, therefore, been decided to adopt a sliding scale of duties, so fixed that the rate of duty on flour will increase when the price outside New Zealand falls, but will decrease when world prices increase. It is, therefore, proposed to ask Parliament next session to alter the present duties on flour to the following basis:— Wheat flour, including wheatmeal and similar preparations:— When the current domestic value of flour is £13 per ton of 20001b, the duty shall be £3 10s per ton, provided that— (1) When the current domestic value exceeds £13, the rate of duty , shall be decreased by one shilling per 20001b for every one shilling or fraction of one shilling by which the said current domestic value exceeds £13. (2) When the current domestic ... value is less than £-1.3, the rate of 'duty shall be increased by one shilling per 20001b for every one shilling or fraction of" one shilling by which the said current domestic value is less than £13. ABOLITION OF DUMPING DUTY. "When these duties take effect, dumping duty will not be charged on imported flour. "After careful investigation, the Government has decided that the s.hemo of duties will be more satisfactory than tho original proposal for a flat rate incrcaso in duty. "In view of these proposed duties on flour, it will bo necessary for the Government to seek Parliamentary approval of a revised scale of duties on wheat. Notice of the Government's intention to alter tho duties on flour has already been given to the Commonwealth authorities, and if .Parliament approves the above proposals, tho new duties will operate in October next. "When the new scale of duties takes effect, tho price of local wheat will, as at present, be left to the determination of ordinary trade competition between buyers and sellers."