DUTY ON WHEAT.

Hawera Star, Volume XLVI, 1 June 1927, Page 5

DUTY ON WHEAT.

SLIDING SCALE PROPOSED,

TO ENCOURAGE GROWERS.

(BY TELEGRAPH—PRESS ASSOCIATION.) WELLINGTON, May 31. The following statement by the Prime Minister (the Hon. .T. G. Coates) was made to-night:— 1 ‘ The Government has for sonic time had under consideration the question as to the best method which can be adopted to encourage the growing‘of wheat in the Dominion. In conhection with this matter the interests of both producers and consumers must be considered. If, on the one hand, a policy is adopted under which in any year or series of years the price of wheat to the grower in New Zealand is below that necessary to give him a reasonable return, this would have the effect of-re-stricting the area used for the production of wheat. On the other hand, if in. any year or series of years, the price of wheat is relatively high, this must have the effect of causing high prices of bread and other wheat products to the general consumer. It is desired, also, that arrangements should be made -under which the conflicting interests of those affected can be adjusted without recourse to special Governmental action, such as embargoes, price-fixing, State importation, etc. “After considering all the circumstances and possible courses of action, the Government has come to the conclusion that this object can best be arranged by a system of Customs duties designed, on the one hand, to enable the grower to'obtain a reasonable price for his wheat when, world prices are low, and, on the other, to keep the cost of bread and other wheat products as low as possible when world prices are high. “It has therefore been decided to adopt a sliding scale of duties, so fixed that the rate of duty on flour will increase tyhen the price outside New Zealand falls, but will decrease when world prices increase. It is therefore proposed to ask Parliament next session to alter the present duties on flour to the following basis: Wheat flour, including wheatmeal and similar preparations, when the current domestic value of flour is £l3 per ton of 20001bs average, the duty shall be £3 10s per ton, provided that: (1) When the current domestic value exceeds £l3 the rate of duty shall be decreased by one shilling per 20001bs' average for every one shilling, or fraction of one shilling, by which the said current domestic value exceeds £l3; (2) when the current domestic value is less than £l3 the rate of duty shall be increased by one shilling per 20001bs average for * every one shilling, or fraction of one shilling, by which the said current domestic value is less than £l3.

"When these duties take effect the dumping duty will not be charged on imported flour. "After careful investigation, the Government has decided that the scheme of duties will be more satisfactory than the original proposal for a flat rate increase in duty. In view of these proposed duties on flour, it will be necessary for the Government to seek Parliamentary approval of the revised scale of duties on wheat. Notice of the Government’s intention to alter the duties on flour has already been given to the Commonwealth authorities, and if Parliament approves the above proposals the new duties will operate in October next, when the new scale of duties takes effect. The price of local wheat wall, as at present, be. left to the determination of ordinary trade competition between buyers and sellers."