WHEAT PRODUCTION.

Hawera Star, Volume XLVII, 14 September 1927, Page 5

WHEAT PRODUCTION.

NE A ZEALAND SHOULD HE SELE-

sGPa'OKTLnG

GOVERNMENT'S TARIFF POLICY

Y USL^UiIArH - I'HjißO ASSOCI Allow. J n ELLEN OTON, Sept. 13. Considerable attention lias, during tbe recess, been given to tib© question 01 the production ot wheat m toe Dominion, said the Hon. Downi© Stewart in his review of the tariff proposals in the House ox ilepresentativeis last might. It is the po.icy of the Government that New Zealand snould, if possible, grow sufficient wheat for its own requirements and thus, so far as this essential and staple food of the people rs concerned, be independent of outside supplies. During the last few years tins matter has been dealt with by means of embargoes on importation, price-fixing and Government control, and importations. These courses were necessary ,at the time they were brought into operation, but are considered unsatisfactory and should not be continued. The New Zealand farmer will not grow wheat unless he can be reasonaby assured ot a return .sufficient to recoup him for his labour, cost of production, etc. On the other hand, it is desirable that the price of bread should, as far as statutory provision can ensure, be kept within reasonable limits. It is believed that these objects can best be achieved by means' of a sliding scale ot duties, decreasing when the prices ot wheat and flour rise outside New Zealand, but increasing when the prices of those commodities fall. The basis upon which the duties are proposed to be levied depends on the current domestic value at the port of export to_New Zealand. AVhen these values are 5s id per bushel and £l3 per ton for wheat and flour respectively, the duty" is to ho at the rate of Is Id per bushel and £3 10s per ton. These, duties decrease and increase in inverse relation to the prices of wheat and flour. It will thus lie. seen that .if the current domestic value of wheat and flour outside New Zealand increase above the figures I have mentioned by (say) 6d per bushel and £1 per ton respectively, the duty will be reduced to 7d per bushel and",£2 10s nor ton on wheat and flour. On the other hand, if the current domestic values of the. commodities decrease by the same, amounts, the duty will be similarly increased. The Government believes the result of thpi.se duties will he to stabilise within certain more or 'less definite bruits the prices of wheat, flour snd bread: in the Dominion.