TAXING BREAD AND BUTTER

Evening Post, Volume CXX, Issue 125, 22 November 1935, Page 10

TAXING BREAD AND BUTTER

Taxation of all the people for the primary producer section of the people is fast becoming a' fixed policy for Australia, and is not unfavourably regarded by those seeking place and power in New Zealand. It is of more than passing interest then to this Dominion that an extension of that policy to the food of the people for die benefit of the wheat grower is contemplated in Australia. The export value of wheat, one of Australia's principal exports, at the end of last year was about 2s 6d per bushel, an admittedly unremuneralive price to the producer. But in order to help him a tax was imposed on flour gristed in Australia for Australian consumption, and (lie proceeds of that tax were used in relief of the wheat growers. This tax on bread remains until January next. Again—in order to help the dairy fanner, this lime—legislation has fixed the price of Australian butler for consumption in Australia at 140s per cwt, irrespective of the stale of the markets to which Australian butler may be exported. The anomaly of Australian butter selling at 72s per cwt in London in April last and simultaneously in Australia at 140s per cut was recorded. The Australian consumer, it has been said in defence of ibis policy, does not protest. Probably lie realises the futility of doing so because consumers arc unorganised. Theoretically the Government is the protector of all alike—producers, distributors, and consumers; actually Governments in Australia and New Zealand show themselves to be influenced by the organised or grouped interests of primary producers. This tendency in Australia has ercaled great uneasiness in commercial

circles, accentuated by the latest proposal to fix a home consumption price for wheat at 4s 9d per bushel, the current export price of wheat today being 3s 3d (Australian currency). A deputation of flourmillers, shippers, and brokers waited on the Premier of New South Wales (Mr. Stevens) last week, and declared that the proposed home consumption price would not only cause chaos in the industry, but would expose Australia in other countries to a charge of dumping, not only of wheat but flour. The Premier held out no hope (so far as New South Wales was concerned) of these representations being acceded to, and added that he had been advised that other State Legislatures would pass Bills fixing the home consumption price for wheat, independently of the export value of that article. In New Zealand today there is a fairly large body of dairy opinion favouring something like the Australian domestic butter price scheme being adopted in this Dominion, abandoning the long-established and fair practice of basing the local price of butter on export parity. The Dairy Board is understood to be giving control of the local butter market serious consideration. Some economies in cost of distribution may be possible, but the community, unorganised as it may be, is in no mood and no condition to be further taxed on its food for the benefit of the producer. The board should fully realise that fact, also the possibility of a dumping duty or other impost being placed on its produce in markets where it is prepared to sell at prices under its home consumption price.