WHEAT DUTIES

Hawke's Bay Tribune, Volume XXIII, Issue 106, 18 April 1933, Page 9

WHEAT DUTIES

SUPPORT BY LABOUR PARTY. GUARANTEED PRICES SOLUTION AUCKLAND, April 17. Support for a policy ot wheat duties was given by the Domiuiou conference of the Labour Party to-night. The committee appointed by the last annual conference to consider the wheat and flour industry reported that in its opinion “guaranteed prices would provide a solution of the wheat problem for the farmer, award rates of wages would protect the workers and strict administration of the regulations, which could be provided under the Board of Trade Act, would be a substantial guarantee against exploitation of the consumer.” The committee expressed the view that guaranteed prices must rest on a foundation of monetary reform. Unless the purchasing power was increased as production increased, prices could not be maintained and guarantees would be undermined. The greater part of whatever exploitation took place in connection with the supply of wheat products occurred after the wheat left the farm, and that was where control was chiefly valuable. The report concluded: “In view of the apparent monopoly of wheat and wheat products by milling and distributing agencies, which results in unduly high prices to consumers, the committee recommends: (1) That the Department of Industries and Commerce be authorised to exercise the powers conferred by the Board of Trade Act so as to ensure complete control of the production and importation of wheat and wheat products and control of prices from farm and factory to consumer. (2) That, subject to the payment of award rates of wages iu the wheat and milling industry, adequate tariff rates or adequate subsidies on wheat be supported until complete control of the industry and prices is arranged under the Board of Trade Act. (3) The establishment of State flour mills.” The report was adopted.