WHEAT INDUSTRY

Manawatu Standard, Volume LVIII, Issue 302, 19 November 1938, Page 6

WHEAT INDUSTRY

SATISFACTION WITH CONTROL. Per Press Association. CHRISTCHURCH. Nov. 17.’ Wheatgrowers and millers are wellsatisfied with the price control system in their industry, according to statements to the Press by Mr H. F. Nicoll, chairman of United Wheatgrowers (N.Z.), Ltd., and Mr R. J. Lyon, chairman of the New Zealand Flour Millers’ Society. Their statements have been made in reply to arguments of the New South Wales State Auditor, Mr J. Spence, who has submitted a report to his Government opposing the New Zealand price-fixing policy. “In the first place, the administration costs so far as fixation of the price of wheat is concerned are very light, and in the case of flour, bran, and pollard are actually less than half what they were under the millers’ own selling organisation which was absorbed by the Wheat Committee. The present control scheme is the result of years of experience gained by wheatgrowers and millers working together in voluntary schemes, and we do not want to revert to the old conditions,” said Mr Nicoll. “WheD overseas wheat and flour were admitted into the Dominion to the peril of the industry and the general unsettlement of the allied trades neither Mr Spence nor any of his staff, so far as I know, asked any wlieatgrower to express his views, and they certainly did not approach the wheatgrowers’ official organisation to obtain their opinion.” Mr Lyon said that the history of flour milling in New Zealand showed that some form of control had operated for the last 30 to 40 years. This was found to be necessary owing to the small poulation and the impossibility of working up any export trade in flour. Various forms of associations amongst millers had existed since the beginning of this century, the latest being Distributors, Ltd., formed in 1922 and which had remained in forte until 1936. These organisations were voluntary concerns, brought into existence for the better control of the flour milling industry. On the coming into power of the present Government, a further step was taken whereby there would be a closer link-up of the three allied industries, wheat-growing, flour milling, and bread baking. The Wheat Committee was appointed by the Government and given power to control the three industries, and the function of Distributors, Ltd., was absorbed by and taken over by the Wheat Committee, and thus the direction of the flour industry passed to the committee. All millers did not belong to Distributors, Ltd., but on the formation of the Wheat Committee all mills operating in New Zealand were included.

The point of these Lyon said, was that the change-over from voluntary control to Government control did not cause any great upheaval in the flour industry, as control of one sort or another had been in operation for so many years. “In New South Wales the change-over from ordinary private trading to control such as we have in New Zealand would be somewhat sensational, and, naturally, those concerned would be apt to hesitate and take time for consideration before adopting, such a radical change.”