IMPORT OF FLOUR.

Hokitika Guardian, 11 April 1923, Page 2

IMPORT OF FLOUR.

THE LA!!(IF I! PROTEST. COVE 15XM EXT’S REPLY. WELLINGTON, April 7 In legat'd to the telegram from the Labour members of Parliament of Christchurch, addressed to the Prime Minister regarding the embargo placed on the importation of Hour until February, 1924, the Hon \Y. Nosworlhy has replied on behalf of tho Government stating that he has no wish to enter into a detailed newspaper controversy on the matter. He would coniine himself to pointing out some obvious errors in. the allegations made. First, in regard to wheat prices it was almost impossible to ascertain accurately at the moment i lie prices which had been paid by the Australian millers for their wheat supplies, the prices carving as between tliilereuf States of the Commonwealth, and also varying as against pooled wheat and free wheat. The export parity was approximately 4s: Lid a bushel f.o.b. In regard, however, to flour prices lor home consumption, the Melbourne price, was higher than the export price. Flour had been quoted for export as low as £9 Ids f.0.b., wluT' the home consumption price varied us between the States from £ll 5s to £l2. These latter prices were not subject to any discount, and probably did not cover any cost of deliveries, but' were quotations at the mill door. The telegram from the Labour members did not. said the Minister, make mention of the fact that there was considerable difference between the return to the Australian and Xew Zealand millers in respect of bran and pollard. The net difference in favour of the Australian miller had been calculated to represent the sum of approximately £1 IDs per ton ol flour produced. Another point which had been lost sight of by tbe Labour members was the fact that Australian wheat was quoted and sold “sacks in” while in Xew Zealand, wheat quotations were made on the basis of ''sack's extra.” This jxiint made a difference of approximately lls a ton of flour produced.

A further point had relation to the quality of the Australian wheat as compared with New Zealand. r i lie Australian miller bought wheat which returned him a higher proportion of the more valuable product of flour, and was also of such a nature- that the Australian miller was able to introduce moisture over and above that naturally contained in the grain. 'Mils had the effect of enabling the Australian miller not only to produce a ton of flour from a smaller number of bushels of wheat, hut also enabled him to break his Hour down bv the addition of water. When all these facts were considered it could easily be proved that the extra profits of L'.'l a tun suggested as being made by the New Zealand miller was a gross exaggeration, and is not borne out by the faets.

There was ample evidence to show that if the embargo were not continued, the price of wheat in New Zealand would immediately suffer such a serious fall as to endanger the future of the wheat growing industry in tlm Dominion. Mr Nosworthy said he had already, in a full statement made to the Pro.-s, point* d out the importance of this industry to tho Dominion and the importance of Now Zealand being sell sustained so far as staple food supply is concerned. ADMITTED TOO HIGH. WELLINGTON, April 10. ‘ The Government has closely considered the agreement signed between the flour millers and the farmers’ representative.-. relative to wheat and flour prices and has investigated the costs, production and distribution of (lour and by-products." So stated the Minister of Agriculture. “It is considered.’' lie said, ‘‘that the collective prices of flour, bran and pollard named in the agreement are. to a relatively small extent, higher than is warranted by the agreed pikes for wheat and the probable average co-l of producin' u and distribution during the current year; but if this margin of profit were* so adjusted as to leave the prices no longer open to criticism, the decrease brought about would, lie much less than sufficient to enable any reduction to be made in the price of bread to the public. Tit view of all the circumstances, and in consideration of the fact that later developments make it clear that any attempt to force a reduction in .such prices would automatically void the agreement made between farmers and millers, and would inevitably result in the breaking of the wheat market, with consequent disastrous results to the wheat growing industry, the Government has decided against any interference with the prices of Hour, brail and pollard, which form the essential part of the agreement above referred to.”