WHEAT AND FLOUR

Evening Star, Issue 19775, 27 January 1928, Page 7

WHEAT AND FLOUR

THE HEW DUTIES EFFECT ON THE PRICE OF BREAD [Per Ukited Press Association.] AUCKLAND, January 27. The new duties imposed on wheat and dour and their effect on the price of bread was again discussed by the council of the Auckland Chamber of Commerce. In c, letter to the chamber the Minister of Customs said that the new tariff had been in operation since November last, and he had not heard of any advance in the price of bread in New Zealand. It seemed to him that a settlement of the question could only be finally determined by further experience of the position existing under the new rates. The sliding scale of duties had hitherto been untried in the way of endeavoring to adjust the various conflicting interests, hut he thought the council would agree that the method which had hitherto been adopted Jiad not been satisfactory. The Minister said he did not believe that the new tariff would increase the price of bread. Ho -would prefer to postpone a definite opinion, however, until it had been in operation a iittje longer. The council decided to reply to the Minister pointing out that at the time of the falling prices the imposition of an extra duty on the commodity might not raise its internal price, but might, instead, prevent a fall that would otherwise have taken place. That was the point the council wished to stress. The fact to which the chamber took exception was that certain special local interests appeared to have been able to secure a protective duty, the likely effect of which was to make the price of bread higher to the whole community, apart from the effect of the new duties on the cost of living. The experiment of basing duties on a sliding scale had raised practical difficulties, which at the moment seemed no nearer solution than they were when the first shipments, subject to the new duties, arrived. Many importers had found business impossible under the existing uncertainty, and the resulting disturbance of trade was considerable. Recently Messrs M'Cullough and S. Pratt were appointed by the Auckland Grain. Seed, and Produce Merchants’ Association to wait upon the Controller of Customs in an endeavor to secure a, more satisfactory arrangement for the assessment and collection of the dutv on imported Australian wheat. The'v had reported to the meeting of the'association that the comptroller had replied that the regulations would have to remain as at present.