Protection of the Wheat Industry

Manawatu Times, Volume LVI, Issue 7065, 26 January 1933, Page 8

Protection of the Wheat Industry

To tho Editor. Sir, —Those of your readers who have been persuaded into tho belief that the protection given wheat growing is the last thing in iniquity should noto what is being clone in other countries to assist the wheat-growing industry. In New South Wales a Federal bonus of £500,000 has been allotted, tho State is devoting another £350,000, a Flour Acquisition Act is in force to raise the price of wheat used for flour for local purposes, and reductions in railway freights and wharfage charges were also brought about. Both Federal and State bonuses were also given to Victorian growers last year, and now a Flour Acquisition Bill is before the State House.

The Bill proposes that tho Government impose what is in effect a tax of £1 12s 6d per ton on flour gristed for local consumption, and to distribute the proceeds, less administrative charges, to the wheat growers. The Bill gives the Government power to acquire compulsorily all flour now held in Victoria and all flour manufactured in the next twelve months. The amount estimated to be collected from the levy on flour consumed within tho State is £302,125, which is equivalent to Sd a bushel over the 9,000,000 bushels consumed. Thus the effect of the tax would be the same as though the local price of wheat were raised by 8d a bushel. If tho millers passed the whole of this impost on to the consumers it would increase tho price of the 41b loaf by 6d. This, added to the Federal and State assistance, means that the local consumer is paying tho equivalent of over Is a bushel to wheat-growers to enable the balanco to be exported at the prices now ruling. Is this not “dumping in its most cold-blooded form?” to quote some North Island critics. But Victoria and New South Wales, like England (where local wheat is protected to 5s 7d a bushel), Germany (protection 12s 6d a ewt), France (6s Vjd) and Italy (6s Sd), realise the absolute need of preserving their wheat growing industry. Unfortunately, in New Zealand we have a selfish section of the community, that objects to our farmers receiving 3s with the possibility months ahead of another Sd or 9. I am, etc., “BUSHEL.”