WHEAT INDUSTRY

Hokitika Guardian, 7 January 1933, Page 5

WHEAT INDUSTRY

PURCHASE! BOARD

NOTICE OF ESTABLISHMENT.

(Per Press Association — Copyright .i

WELLINGTON, January 6

Regulations are gazetted to-night providing for the establishment of a Wheat Parenas© Board, with its office in Christchurch. The Board will consist of eight members, representing the millers and growers, all of whom are to be appointed by the Minister, and ft will be empowered to make purchases and sales of wheat through authorised brokers. It will be empowered to require the growers to make returns of the wheat grown, and allso to divide the profits among the growers in the form of a bonus.

Hon. R. Masters, Minister of Industries and Commerce, has made the following statement bearing upon the regulations that have been gazetted for the establishment of the. Wheat Purchare Board :—“The object of the regulations is to meet the position which has arisen through the existence of very low prices on the worlds markets, and the .probability of a fairly substantial exportable surplus *of New Zealand wheat from the coming harvest,” said the Minister.

"The regulations provide for the formation and operation of what is, in effect a ‘compulsory pool,’ so that the wheat-growers may receive tlie overage value of theij*' product, based upon : (a) the New Zealand home consumption at a value of approximately 4/3 to 4/6 per bushel; and (b) the export value, of probably not more than 2/6 per bushel. Unless some action is taken to regulate the matter, the prices .would probably fall generally to such low levels-that the growers would receive a price very much below the costs of production, with resultant very serious effect;® on the position of the primary produteers. While the prices would, no .doubt, subsequently increase, tile grower would, meantime, have suffered such a heavy Toss as to result in conditions of bankruptcy for, many of the producers who now are largely dependent upon, this industry. “Under the pooling system provided for in the regulations, all wheat, un-. lci-s it is specially exempted from the operation of the regulations, must be offered for . (purchase by the Wheat Purchase Board. Wheat which is fair average quality milling wheat will be purchased by the Board, and will be resold either for gristing in New Zealand, or for export.'

“The price paid to the grower will be lower than that charged to the mills, so as to provide^fhf s '?®* of export, and. the,, balance of the funds in hand at the end of the year will be used to make a final pro rata payment to the growers. whose wheat has been dealt with by the Board. “What which is not up to fair average' quality milling standard will be rejected, and, as “Free” wheat, it may be dealt with in the ordinary course of trade, and disposed of as stock and poultry food. “Wheat grown in the North Island will. on. certain conditions, be excluded from the operation of the regulations.

“The Board’s operations in the matter of purchase and sale will be carried out through the, ordinary channels of trade and merchant brokers will be appointed ns licensed agents on behalf of the Board at tlie usual brokerage (remuneration. “The general control of the pool will be in the hands of representatives of the two main industries directly concerned—the wheat-growing and the flour-milling industries —with a Chairman appointed by the Government. The Board, which will have its headquarters at Christchurch, will he appointed at an* early date, and will, no doubt, take staps to inform' the interested parties on matters of detail.