FLOUR AND WHEAT DUTY

Hawera Star, Volume L, 29 November 1930, Page 4

FLOUR AND WHEAT DUTY

ALLEVIATION PROPOSALS

DEFEAT of remit "Quite the most important remit from the standpoint of time and enthusiasm put into the debate, as well as from the general interest, was the discussion that took plaice on a suggestion of the Auckland Chamber that there should be no extension, of existing agreements regarding wheat and flour and that the duty on British Empire; wheat and flour should be substantially revised downwards and that the sliding scale be abolished,” said Mr F. W. Horner, president of the Hawera Chamber of 'Commerce, in his address last, evening when tie reviewed various phases or disieussions at the recent Dominion conference of the Associated l Chambers held at The Hermitage, Mt. Cook ‘‘The debate itself lasted_ for oyer three hours and it was obvious from the lobby discussions with the various 'Canterbury members that they regarded it ai® quite a life and death matter as far as they were concerned. Two of their members came derwn from 'Cliristchurch specially to be present during the debate on this remit and returned home the following day. "The.debate was opened by Mr A. G. Bunn (Auckland), who assured the southern members that he had no intention of suggesting that the duties on wheat should be abolished entirely. He agreed that it was essential to impose some form of duty in order that .wo might amply secure the growth of wheat in this country and thus be free from interruption of our main, food supply in. time of Avar and further to increase, if possible, the area- that was being sown in. Avheat.

UNDULY HEAVY TARIFF. "He claimed that the wheat industry was being maintained' in this country by the imposition of an unduly heavy tariff, which had to; be borne by other producers ini the country who have to face world conditions in the disposal of their products. I’t was pointed out by other speakers 'that our present sliding seale of Avheut duties is Is 3d per bushel, based on a standard price at foreign ports of 5s 6d per bushel 1 Taking Australia, for example, 5» fid, plus Is 3d duty, freight Is, and other expenses insurance, etc., bring the total up to Bs. For every half-penny wheat drops below 5s fid, an extra half-penny duty is imposed. ‘This means that, under a pooling system, the New Zealand groAver can demand 8s per bushel. i*'‘At present best iwheat is 8s Id in Auckland and 2s lid at Adelaide. Foavl wheat at Auckland is 7s lid to Bs. Australian Avheat at 2s l'ld means that, as this price is 2s 7d below 5s fid, an' extra 2s 7d has to be added 'to the duty of Is '3d, making the total duty, or protection to our few wheat growers, 3s TOd a bushel. STIFLING INDUSTRY.

"This is stifling our poultry and pig industry. Those 'two industries are capable of miore expansion than any Ave have and should help to absorb large numbers of our unemployed. ‘‘Denmark’s pork and bacon industry is said to be worth £25;000,000 annually and she is one of fhe largest exporters of eggs in the < world. Further, she imports most of her stock foods. "Failing the complete removal of these duties, it was suggested to the (conference that the point at which the duties become operative, \ T iz., 5s 6d per bushel, should be reduced to at leaist 3s 6d, which rvould reduce the guarantee to the- New Zealand farmer to 5s 9d or fis a bushel. ‘•‘The opposition to the remit was very thoroughly organised and was mainly based on the arguments thgt the wheat growers could not possibly afford to grow Avheat and sell it in competition AA r ith the present prices on the Australian market; that wheat growing was a vital industry in maintaining the Dominion’s supply of foodstuffs and that it was therefore essential that it should be encouraged and supported by 'the country and, if necessary, protected; that wheat growing required several years of preparation of the soil and icould not be dropped and taken up again by farmers according to Avhether the prices Avarmnted it or not. "The remit Ivuais finally lost by '29 votes to 15, the location, of the conference in the midst of Ne|w Zealand’s Avhcat-groAving proAlneo no doubt affecting 'the- representation of the A7arious' chambers for the voting on this issue. ’ ’