WHEAT PURCHASE

Evening Post, Volume CXXI, Issue 78, 1 April 1936, Page 8

WHEAT PURCHASE

GOVERNMENT'S ACTION

DETAILED EXPLANATION

QUESTION IN HOUSE

Full details of the arrangements made recently for the purchase and sale of milling and fowl wheat were given by the Minister of Industries and Commerce (the Hon. D. G. Sullivan) in the House of Representatives yesterday in reply to an inquiry by Mr. C.. A. Wilkinson (Independent, Egmont). Mr. Wilkinson-in the course of his question also asked if the Minister would place on the table of the House the agreement or arrangements made between his Department and Distributors, Ltd. The Minister said that the arrangements made in regard to the purchase and sale of f .a.q. wheat for human consumption were governed by Board of Trade (Wheat) Regulations, 1935-36. The main point about this year's arrangement, in so far as the farmer was concerned, was that the final price which he would receive would be 4d more per bushel than it was! last year. Fowl wheat did not come under the Board of Trade (Wheat) Regulations, and was not controlled either as to buying or selling prices. Milling wheat was purchased from the grower and sold to the miller by the Wheat Committee. The purchase and sale was arranged through the agency of brokers who were paid id a bushel for buying and Jd a bushel for selling the wheat. The prices paid to the farmers were 4s 5d for Tuscan f.o.b. grower's nearest port, 4s 7d for Hunters, and 4s 9d for Velvet. These prices were subject to increments to cover interest, storage, etc. The increments commenced in April, and were Id a bushel increase for each of the months, April, May, June, and July, and Jd'for August and Jd for September, making a total increment in September of 5d a bushel. These prices were the initial buying prices only, and were subject to the payment of a bonus when the whole crop was cleaned up. PRICES PAID BY MILLERS. , The prices paid by;millers were:— North Island millers: 4s Bd, 4s lOd, and 5s f.o.b. South Island ports. . South Island millers: 4s 9£d, 4s lljd, and 5s ljd f.o.b. South Island ports. These prices were for Tuscan, Hunters, and Pearl respectively, and were subject to .the storage and interest increments as set out. . • The wholesale prices charged by the committee for flour, said the Minister, were not based upon the f.o.b. values, but the system provided that an equalised price was charged in all main centres. The prices per ton at the principal .ports- were as' follows: — Auckland: £13 12s'delivered or f.o.r. to country stations. Wellington: £13 8s ex wharf. New Plymouth: £13 18s ships' slings. Lyttelton: £13 12s delivered. Dunedin: £13 12s delivered. BRAN AND POLLARD. Bran and pollard may be imported into this country duty and primage free, and the wholesale price charged by the committee was not fixed, but could move up or down in sympathy with the Australian parity. At present New Zealand pollard ranged from 20s to 35s a ton less than Australian could be imported for. Prices were:— Auckland: Bran, £6; pollard, £7, delivered 6rf.q.r. to country stations. Wellington: Bran, £5 18s; pollard, £6 16s, ex whar£ r'-~V ' '■ New Plymouth:' Bran, £5 10s; pollard, £6 Bs, ships' slings. -- •>.^ ; . ; Lyttelton: Bran, £4 15s; pollard, £6" ss, delivered. BREAD RKICES. Bread prices, said the Minister, were fixed by Order in' Council in the four main centres only, at 5d cash over the counter and 4£d wholesale a 21b loaf. In other places the standard prices for bread ruling were stabilised in a "blanket" provision in the Order in Council. Investigations were proceeding which would revealthe reasonableness or otherwise of the ruling standard prices on February 8 in all placesi and action would be taken to make adjustments if and when these may be considered necessary and advisable. The present price at New Plymouth was 6d cash over the counter and 5Jd net wholesale. "There is no' formal agreement between the Department and Distributors, Ltd.," the Minister stated. "The ; Wheat Committee took over the staff of Distributors, Limited, on February 8, and negotiations between the Wheat Committee-and Distributors, Ltd., are proceeding for the purchase of any office-assets which may be useful to the committee in the conduct of its business."