THE TARIFF ON WHEAT.

New Zealand Herald, Volume LXIV, Issue 19808, 1 December 1927, Page 14

THE TARIFF ON WHEAT.

ASSESSMENT OF DUTY. CUSTOMS REGULATION. PROTEST BY OTAGO INTERESTS. [BY TELEGRAPH. —OWN CORRESPONDENT.] OAMARU, Wednesday. The provision in the customs tariff for a sliding scale of duties on wheat and flour were regarded as satisfactory by vvheatgrowers as it was expected they would probably ensure a minimum price of 6s a bushel. Proposals have since been made by the Customs Department which, in the opinion of growers and millers, threaten to shatter the whole arrangement. After the tariff had been approved, representations were made to the Minister of Customs by North Island merchants that they would be seriously embarrassed if the rate of the duty could not be determined until the date of exportation. A circular has been issued by the Customs Department to millers which states that "the Minister has therefore under consideration the question of allowing importers to elect to pay duty on wheat and flour on the basis of the current domestic value at the date on which the contract, of sale is entered into, and not at the date of exportation, provided that the conditions' set out in the enclosed draft notice are complied with." The draft notice is a little ambiguous, for it says in the schedule: "I (or we) understand (1) that the duty payable on the above goods will be determined by reference to the current domestic value of such goods at the date of such contract at the port of exportation and (2) that the current domestic value set out above will not necessarily be accepted by the Customs Department for the purposes of duty." A prominent North Otago miller expressed the view that a deliberate attempt was being made by North Island merchants to defeat the original object of the tariff. He could not see how merchants could be embarrassed by paying duty on the current domestic value at the time of exportation. The effect of the new arrangement, if '*mt into operation, would probably be to rob the Government of a considerable sum in duty and to enable North Island millers to import wheat and flour at such prices as would make wheatgrowing in the South Island unprofitable. The modus operandi would be simple. A North Island mer-' chant would make a contract for wheat and Hour in November, when the domestic prices were the highest of the year. Delivery would be spread over a number of months and the Government would have no means of ascertaining whether payment for the wheat delivered, say in March, was on the basis of November prices or otherwise. The natural inference was that the terms of the contract would mean payment on values ruling from month to month. Hence if the duty was assessed on a contract made in November, when the price was 6s a bushel, the payment in duty would be much lower than it should be when the current domestic value was 5s a bushel. In other words, wheat purchased on contract at 5s a bushel might be imported on the dutiable basis of 6s because the contract was made at a period when 6s a bushel was the domestic value. Mr. E. B. Meek, president of the North Otago executive of the Farmers' Union, has telegraphed to the Prime Minister and has received a reply that the matter will be looked into.