THE WHEAT QUESTION

Northern Advocate, 16 February 1926, Page 2

THE WHEAT QUESTION

i |'-LABOUR PARTY STATEMENT. The following statement by the National Executive of the Now Zealand Labour Party on the wheat question has been haifded to the Press by Mr. Walter Nash, National Secretary:— THE MAY AGREEMENT, On May, 19th last the Minister of Agriculture (Hon. W. Nosworthy) announced that the Cabinet had ratified the proposals agreed upon at the recent conference between the wheat growers and millers. TluS details of the proposals and the conditions laid down by the Government when ratifying them were as follows: — The millers were to pay for all wheat sown in 1925 and harvested in 1925-26 at the following rates: : —Tuscan, Cs 5d per bushel; Hunters,. 6s 7d; Velvet, 6s 9d. All prices f.o.b. Any surplus offered over milling requirements was also to be purchased by the millers, at the above prices. Flour was to remain, at £lB per ton. Bran and pollard to be reduced to £7 and £8 per ton respectively, all prices f.o.b. South Island main ports—Lyttelton, Timaru and Oatuaru.

The following conditions wore also laid down by the Minister:—(l) The wheat growers were to sow an area of wheat calculated to provide for the whole of the Dominion's requirements. (2) The duty of wheat would remain as at present, and importation would not be interfered with. (3) If necessary to protect the millers in 1926 an embargo would be placed on the importation • of flour. (-4) The price cf bread was not to be increased. In conclusion the Minister stated that if the necessary wheat was grown, in the Dominion no hardship would be imposed on the country by the embargo oh flour, and he had every confidence that the wheat-grow-ers would respond to..the offer of Government and make New Zealand independent of outside sources for one of its most important foodstuffs.

The foundation of the guaranteed price was the condition that a sufficient area should be sown to meet the Dominion requiremens of 8,000,000 bushels. Taking the average yield at 30 bushels per acre, this meant that at least 266,000 acres would have to be sown. Instead of sowing this area, the growers broke both the spirit and the letter of the agreement by sowing 160,000 acres only, the result being that the Dominion is faced with a shortage of between three and four million bushels. With knowledge of the Dominion shortage, and a short crop in Australia, the wheat-growers demanded that either the period of the guarantee should.be extended, or, alternatively, that they should be re-1 leased from the May agreement and bo given a market to dispose of their wheat at the best price obtainable. A FREE MARKET. The wheat growers seized the opportunity of pressing their demands when the new Minister of Agriculture was appointed. They also got the ear of the Prime Ministers. Neither of these Ministers is so well informed of the position as the late Minister of Agriculture. The May agreement is abrogated and the_ demand of the wheat growers for a free market is granted. A free market with four to five million bushels .of wheat to satisfy a demaAd for eight million bushels! To ensure the fullest freedom in their free market, the wheat growers asked that a duty of Is 3d per bushel shall be placed on imported wheat.