IMPORTATIONS OF FLOUR.

Otago Daily Times, Issue 19978, 21 December 1926, Page 8

IMPORTATIONS OF FLOUR.

The experience of the Dominion in the matter of wheat-growing has been so unfortunate for the last few years that there is something alluring in the prospect that, provided that nothing occurs to prevent the yield from being proportionate to the area sown, the harvest during the coming season may be sufficient, or nearly sufficient, to meet the country’s own requirements. It is not necessary to look far in order to obtain the explanation of the increased attention that is being given this year to wheat-growing. There is no question of the ability of the country to grow sufficient wheat to meet its own needs. Only five seasons ago the crop aggregated 10,565,275 bushels, and in the following season it was 8,395,023 bushels. In 1923-24, it dropped to onerhalf the yield of 1922-23. In 1924-25, there was a slight recovery, but in the past year the crop was little more than 4£ million bushels. Unfavourable seasons accounted to some extent for the diminished production, but it was chiefly due to the fact that the farmers perceived that it was more profitable to keep cattle and to grow wool than it was to take the admitted risk that is associated with wheat-growing. Although it is satisfactory to observe that the demand for wool has been inducing a healthy competition at this season’s sales and that the dairy produce market has been reviving, the prices of the staple articles of exportation from the Dominion have declined from the high level of two or three years ago, and the effect of this and of the existence of a substantial price for wheat has been exhibited in the fact that the area sown in wheat this year is greater by at least one-half than it was last year. There is little or nothing, however, in this circumstance to warrant any apprehension on the part of wheatgrowers that their crops may have to be realised in a glutted market. Yet, some of them are now urging the Government to place an embargo on the importation of Australian flour. The arguments which they presented to the Minister of' Agriculture last week at Ashburton in support of this request have not been disclosed, • but the community at large must hold that Mr Hawken took the broadly sound view when he definitely declined to assent to any such interference with the processes of the trade. The Government cannot be charged with any lack of sympathy towards the wheat-growers. It has taken a great deal of trouble to encourage wheat-growing, though the farmer has not been conspicuously amenable to encouragement, and it might well be somewhat weary of these continued appeals to it for assistance. It they cannot have an embargo on the Australian product the New Zealand wheat-growers desire to see the duty on imported flour considerably increased. Mr Hawken placed the position fairly before the deputation. Australian flour, he pointed out, constitutes the only protection which is afforded to the consumer in New Zealand in respect of the price of bread. The imposition of an embargo would mean that the Government, contrary to its policy, would have to undertake the regulation of the selling price of flour in this country. Mr Hawken went sufficiently far when he said, with respect to the duty on flour, that if it could be proved that a dumping duty on Australian flour would be justified, the Minister of Customs would, no doubt, take the matter into consideration. The effect of the importation of Australian flour has been to keep down the price of flour and the price of bread in New Zealand. For

this ’the consumer has reason to be grateful, though it is probable that he considers that even now he is paying quite enough for his supplies of breac'. Australian importations have really been necessary to make up for the deficiency in the wheat output of the Dominion. And, while this country’s requirements may be met, or nearly met, by the ensuing wheat harvest, it cannot be reasonably said that there is a shadow of justification for prohibiting the importation of Australian Hour, which enters this country, of course, under a protective duty. We have had our experience of an embargo on importations from Australia. A very unfortunate precedent was established in that case. It is to be hoped that no Government will consider the expediency of following it on any future occasion. It should be only in the most exceptional and unprecedented circumstances that a prohibition should be imposed on the importation of any commodity from Australia. If New Zealand is able to supply Australia with butter when the Commonwealth requires it and if Australia is able to supply New Zealand with wheat or flour when the Dominion requires it, the interests of both countries are served fay the existence of facilities to admit of the trading. Those interests merit consideration, moreover, whenever any suggestion is made that Customs duties, which form a barrier to the development of commerce between the two countries, should be increased.