THE WHEAT PROBLEM.

Otago Daily Times, Issue 19844, 17 July 1926, Page 17

THE WHEAT PROBLEM.

THE MILLERS’ ACTION* COMMENT IN PARLIAMENT. (Fbom Ode Own Correspondent^ WELLINGTON, July 16., In the House of Representatives this afternoon Mr David Jones (Ellesmere) referred to the question of the importation of wheat from Australia. _ He said he wished to point out emphatically that we would have had plenty of wheat in New Zealand this year if the weather conditions had been good last year, when there were very severe floods in the country. In consequence most of the farmers were unable to get on their land until right into the spring. Many could put in no wheat at all. The result was a considerable reduction in the amount of wheat grown. The policy of the Government had been altered lately, and it had at last fixed the duty on wheat. The result of that was that we would have in New Zealand next year sufficient wheat for New Zealand’s needs if we got good v yields. A very peculiar position, however, was resulting at the present moment on account of the action taken by Distributors (Ltd.). They were importing flour into New' Zealand and reducing the price in the North Island, but increasing it in tbe South Island. _ Many people wondered whv. The position was quite clear. Distributors (Ltd.) endeavoured to fix the price last year by binding themselves to a price that they would not go beyond. Many millers felt that the price was too low, and a large number went beyond that price and got sufficient wheat to carry them through until next wheat season. Some prominent members of Distributors (Ltd.) refused to go beyond the fixed price, and they had very little wheat left to-day as the result. Consequently they were starting an agitation to get an importation of wheat into the South Island, knowing that unless they could lift the price of flour, and therefore of wheat, in the South Island it would be impossible to import wheat from Australia and mill it even duty free. They thought they had acted with great cleverness, but really they had acted with great foolishness. The Minister of Agriculture had definitely stated that the_ Government was out of the wheat business. It had fixed the duty, and the duty remained. That tnight cause hardship to some for a time, but the result of the policy would be that there would be more wheat in New Zealand than under any other policy that could be adopted. The Minister deserved the gratitude of the farmers who took the long view, and of the whole of the community. He hoped the Minister would indicate that he meant to stick to . the policy he had adopted, and that he would not be driven into another position by the action of members of the company referred to. STATEMENT BY MINISTER. NO CHANGE IN POLICY. (Fbom Our Own Correspondent.) WELLINGTON, July 16. Speaking late in the evening, the Minister of Agriculture (the Hon. 0. J. Hawken) said it was unfortunate that enough wheat had not been grown last year to provide for the wants of the people, but the Government still held to its opinion that the ordinary course of trade should be followed and that the Government should not interfere in the question at all. He understood that some millers had bought sufficient wheat for the whole of the year’s requirements, and the Government would be interfering with those millers if it took up any other attitude. There would he sufficient wheat for next year’s requirements if the weather and other factors were normal. Except in bad years, he hoped and believed we could grow enough for our own requirements. The Government had no intention of altering its policy in regard to wheat.