AUSTRALIAN TOBACCO.

New Zealand Herald, Volume LXVI, Issue 20331, 12 August 1929, Page 11

AUSTRALIAN TOBACCO.

DEMAND FOR INQUIRY*

ALLEGATIONS BY GROWERS

"UNDER DICTATION OF COMPANY"

Giving reasons in support of an inquiry into the. tobacco industry by a select committee or hoard of experts appointed by the Federal Ministry, Mr. Thompson,

M.11.1i., and other speakers at a recent meeting of the Federal executive of the Australian Tobacco Growers' Association in Melbourne, declared that at present the growers had only one company to buy their produce. The company, it was asserted, was able to dictate to the growers. Mr. Thompson, M.H.8., who presided, said that there were now about 500 growers in Australia. Those in NewSouth Wales expected to produce about 250 tons of high-grade, flue-cured tobacco this year, and. the Victorian production was estimated at more than 400 tons. Australian growers produced about 10 per cent, of the Australian consumption. The principal problem confronting the growers was that of marketing. Growers had been too much impressed by the view of the one buying company, which stated continually that almost all the tobacco grown in Australia was inferior. The Federal Ministry also had been too much influenced by that wrong ■view. The Victorian Ministry's policy toward growers had been most encouraging, but that of the Federal Ministry and of the New South Wales Ministry had been disheartening. " Growers in the Dark." Last year the growers had asked the Prime Minister, Sir. Bruce, for a bounty for the industry, or an alteration in the tariff, to increase the duty on imported tobacco, or to reduce the excise duty on the Australian-grown leaf. They had failed to get any satisfaction. While Australian growers approved of expenditure on research work they felt that the work was too much controlled by the company, and was being made a means of throwing a "wet blanket" on the Australian industry. There was need for a thorough and independent investigation into the Australian industry. Growers were in the dark, especially about the progress of research work. "The new agreement, which is to be placed before the growers by the company," Mr. Thompson continued, "reveals that the company, which hitherto has always fixed the price, now intends also to buy only certain quantities of each grade. The object is clearly to keep down production in Australia. No company should have power to ration production in this way. Such a policy should not be tolerated by the Federal Ministry. The Ministry should formulate a policy for the industry, instead of allowing the company to do so." Mr. Thompson advised growers to give more attention to the production of lighter varieties of tobacco. No Market for Dark Leaf. Mr. Temple Smith said that he agreed with all that- Mr. Thompson had said. Australia could produce tobacco of the highest quality. He had been informed that after this year the company intended to buy only 10 per cent, *of dark leaf. Each grower's crop therefore would have to consist of 90 per cent, of bright leaf. Grow-ers were being asked to produce a much higher percentage of bright and light tobacco than was demanded from the most experienced grow-ers in other countries. Iu was almost impossible for Australian growers to produce 90 per cent, of bright leaf. The company had actually encouraged ihe growing of dark tobacco. There was 50 per c-ent. more profit for the grower iri producing the dark varieties.

"If the industry is to be helped politically," Mr, Temple Smith continued, "the iriost. satisfactory manner would bo to reduce the excise duty on Australiangrown leaf. The. best solution of the marketing difficulty would be to appoint a marketing board."

Mr. Jones, M.U.R., said that the industry could best be helped through the tariff. He, like many others, had been at a loss to know why the Tariff Board's recommendation for a bounty of 6d a lb. had not been accepted. He would support the appointment of a select committee to incjuire into the industry. Research work should be. carried out solely by the Federal Ministry.

Mr. Thompson said that he intended io move for the appointment of a special committee immediately the Federal Parliament met.