THE BRITISH LOAF.

New Zealand Herald, Volume LXVIII, Issue 20841, 7 April 1931, Page 8

THE BRITISH LOAF.

5 It is reported from so authorir tativc a source as the Daily Herald * that the Cabinet is about to de- • cide definitely .whether it will fix a » quota of 15 per cent. British flour " in the loaf, thus assuring a market for all the milling wheat grown on » British farms. The quota system J } espoused as long ago as last August by Dr. Addison, the Minis- ' ter of Agriculture. The same system has also been favoured by the Conservatives, who .advocate, in addition, a quota of Empire flour. | There are important differences, however, in the two proposals. Dr. Addison advocates bulk purchase of ' overseas wheat and import boards as appurtenances of his quota scheme. He has been silent on the subject of price, the most important feature in the farmer's eyes. From the Conservative side there came the suggestion of a guaranteed price, 55s a quarter being the figure mentioned. On this basis the quota theory was extensively discussed toward the end of last year. It was proposed that the millers, who are already well organised, should be the agents for purchasing the wheat, the Government paying to them the difference between the friarket and the guaranteed prices. From this aspect no difficulty was discovered. The stumbling-block was that the guaranteed price would mean a subsidy of 25s a quarter on the market rates then ruling; they are not very different now. The sum involved could not be provided easily by any Chancellor of the Exchequer, especially at present, with a £2:5,000,000 deficit to be met, and taxation admittedly at its very peak. The scheme, moreover, offers nothing to those farmers who do not produce milling wheat, but sell their grain for stock food. Furthermore, the growers of oafs, barley and other cereals protest that they need consideration as much as the wheatgrower does. These last objections apply equally to the quota system as proposed by the Labour Minister of Agriculture. Tt also promises to affect nothing but milling wheat, and does not, therefore, cover the whole problem of arable fanning. If the Cabinet is as silent on the subject of price as Dr. Addison has been until very recently, the wheatgrower will not be roused to any enthusiasm. He is much less concerned with the absorption of the wheat he crows, Uian with the return for it. He can always sell his grain if lie meets the market. His complaint has been that to do I,his involves accepting less than I ho. cost of production. Lnlfss, therefore, the proposed quota is accompanied by a guaranteed price, the farmer will not be ' greatly dismayed if the Cabinet . decides not to adopt it.