PRICE OF FLOUR

New Zealand Times, Volume LII, Issue 12251, 24 September 1925, Page 6

PRICE OF FLOUR

WHAT NEW ZEALAND PAYS 50 PER CENT. MORE THAN AUSTRALIA CHIEF JUSTICE’S COMMENTS In the course of his judgment in the flour-milling case in the Court of Appeal, the Chief Justice said “Then, in xeference to the price of flour, the position in New Zealand is certainly anomalous. It is not suggested that has been entirely caused by the' agreement that was made between the wheatgrowers and Distributors, Ltd. The fact is that as there is a duty on tho importation of wheat,” and

also up to at least the last year the Government fixed the price of flour, there has not been free competition in the production or sale of flour in New Zealand'. What has happened is this: that whilst the price of flour in Australia has been from £lO to £l2 per ton the price in New Zealand has been £lB per ton. “The new agreement has not led to a lowering of the price of flour in New Zealand to the consumers. In fact, it would be impossible to get it lowered except with the consent of Distributors, Ltd., because there is no competition. This seems anomalous when it is considered that a large part of the territory of New Zealand is suitable for wheat-growing. In the South Island the yield per acre of wheat is far in excess of the yield per acre in Australia. The Australian average is only about 10 to 12 bushels' per acre, whilst the yield of wheat lands in the South Island of New Zealand is on an average about double that amount. In fact, for the years 192223, the average yield per acre was 30.44 bushels. “It was said that the contract made by Distributors, Ltd. and tho wheat-growers was of benefit to New Zealand, because it encouraged the growth of wheat. At what a price? If we are to look at the matter from the point of view of providing flour for the people, the consumers of New Zealand were paying even after that agreement was made about 50 per cent, more for their fl<Jur-focd than the

people of Australia, cr.J though the farmers of New Zealand were obtaining 50 per cent, of wheat per acre more than the Australian farmers were receiving, still the Australian people were getting cheaper flour. It has also to be remembered that New Zealand was a large exporter of wheat. “It is clear, therefore, that any agreement made with Distributors, Ivtd. could have had little effect on the production of wheat. What may

have had an effect on the production of wheat has been the fact that there is an import duty on wheat, and, farther, that the Government in past years has been in the habit of purchasing wheat and also making regulations and lules as to its price.”