TOO MUCH WINE

Evening Post, Volume CXV, Issue 81, 6 April 1933, Page 10

TOO MUCH WINE

AUSTRALIA'S PROBLEM

A SPECIAL INQUIRY

(From "The Post's" Representative.) SYDNEY, March 30. The decision of the Commonwealth Government to appoint an expert to investigate and report on the problems 'of the wine industry in the Common* wealth has been prompted largely by the desire of the Federal ■. Government to put an end.to the dissension within the industry itself. There is agreement on one point only—that over-pro-duction and low prices threaten the industry: The vintage, for 1933 is estimated at 16,000,000 gallons, and prices are very low. ■ ' •; , Two successive Governments have tried to deal with the problems of the industry, particularly in relation to the excise duty, the fixation of the price of grapes, and the export'bounty. Successive Ministers of Customs and. Commerce have received many deputations,, but the ultimate effect has been to emphasise the clash of interests between groups, and botween the cooperative and proprietary distilleries and wineries. The Seullin Govern-1 ment introduced a Wino Excise Bill. It I was intended to impose an excise duty, on wine instead of on the fortifying spirit. The Houso of Representatives, passed, the measure, which' was before the Senate when the Government was defeated. . ':

Soon after taking offico the Lyons Government called the wine interests to a conference, and asked them to agree upon a settled policy. Tlu-eo committees woro appointed, and the one to discuss excise duty hajs already met. But it has been unable to come to any agreement. The export advisory committee has made a number of recommendations, but these are being opposed in many quarters. When a schedule of prices for grapes was drawn up, an influential section of the. industry protested against the fixation of prices. Some of the distilleries said that if the price of grapes was fixed -at the price that ruled last year they would be unable to carry on.

Every proposal put forward is bitterly opposed, and tho whole industry seems to be in a hopeless position. Ex-, ports of wine to the United Kingdom have grown in recent years; in fact, they have grown to such an extent that there is a slump in wine in Great Britain. There is certainly any amount of work in front of tho export, who will be asked to tender independent advice to tho Government. .If ho . can settle t\]\ the differences he will win famo for ■all time as-an, outstanding- diplomat,