PURCHASE OF WHEAT

Greymouth Evening Star, 20 February 1947, Page 10

PURCHASE OF WHEAT

NEW ZEALAND CONTRACT WITH AUSTRALIA TERMS ANNOUNCED CANBERRA, Feb. 19. “The Commonwealth Government has entered into a contract with the New Zealand Government to supply Australian wheat to New Zealand at 5/9 a bushel for the next four years, \ said the Minister of Commerce and Agriculture (Mr R. T. Pollard) in the House of Representatives, this afternoon. “The New Zealand Government will take up to 4,500,000 bushels a year.” ' Mr Pollard added that when the original contract was made with New Zealand to simply wheat from the 1945-46 crop at 9/6 a bushel, it was agreed that the supply of wheat for the following four years should be a matter for negotiation. It was agreed, however, that the price would not be higher than 5/9 a bushel.

All Requirements Mr Pollard said the New Zealand Minister of Finance (Mr Nash) had visited. Australia i ecently, accompanied by the Wheat Controller (Mr R. McPherson). A contract had then been negotiated and approved. This provided that Austi alia would supply all New Zealand’s requirements for four years. It would supply .a maximum of 4,500,000 bushels at 5/9 a bushe' f.o.b. Any quantity above 4,500,000 bushels in any one season would be at a price to be negotiated. Mr Pollard added that the New Zealand would take not less than 3 500,000 bushels in any one of the four seasons. The Wheat Board would be paid by the Government at the export price ruling at the time it completed its arrangements, and the Commonwealth Government would be paid by the New Zealand Goveinment at 5/9 a bushet. Bargain Price The Deputy-Leader of the Country Party (Mr J. McEwen) said the Minister’s statement revealed an eailiei attempt by the Government to sell a product which belonged to the wheatgrowers at half its exportable marliet value. Australian wheatgrowers would not have known had not the New Zealand Minister of Supply (Mr D G .Sullivan) fold his Parliament on July 5 last year of such an agreement. Mr Pollard: That is a he. Mr McEwen continued that tne pressure of the wheatgrowers representatives in the Federal Parliament had since forced the Government to recant in its intention. The present agreement sold wheat to New Zealand at a bargain price but through this undertaking the Australian taxpayer, and not the wheatgrower, was forced to pay the difference between the agreed price and the present export price.