WHEAT TO FREE MILLS

Otago Daily Times, Issue 22102, 4 November 1933, Page 19

WHEAT TO FREE MILLS

TO TUE EDITOR. Sib, —The letter written by Mr Fred Waite, which appeared in your issue of the 28th ult., is very disappointing. Mr Waite stood for Clutha at the last election and must have a better acquaintance with the facts relating to the operations of the Wheat Purchase Board than one would' gather from his letter. He must know, for example, that in June last, the Otago Provincial Council of the New Zealand Farmers’ Union endorsed our contention that “ the Wheat Purchase Board was illadvised in rationing flour mills and in restricting the sale of wheat,” and that both the Dunedin Chamber of Commerce and the Farmers’ Union stand by that resolution.

As we have written before, the Wheat Board exists for the purpose of regulating the sale of wheat. It ought not to be

concerned with the milling of flour. In this connection Mr Mulholland’s recent statement at a meeting of Canterbury farmers that the rationing to millers has as its object the prevention of competition is very illuminating. We are not impressed by the various ponderous statements from interested individuals with regard to the secured by this scheme in financing the purchase of wheat. In the ordinary course of business, the penny per bushel monthly increment must ensure large purchases in the first three months. It would always be an easy matter to arrange for finance with regar;d to the balance of wheat purchased.

We admit that we have taken pleasure in enlightening the public concerning the injustice that is being done to free mills, but we have no need to crave for sympathy. The public shows its appreciation of the quality of the flour manufactured by us by its steady support. We are proud to state that our flour is made entirely from New Zealand-grown wheat. That it should find such a ready sale stands in striking contrast to Mr Wa'ite’s quotation from the evidence of Mr West, research chemist to the Wheat Research Institute, who seemed to think that the New Zealand public coxild not be satisfied with flour made entirely from New Zealand-grown wheat.

We think that our experience goes to prove that the Nexv Zealand public can be satisfied with the local product, and venture to say that it is very humiliating for New Zealanders to read Mr Waite’s statement that in 1933 over 13,000 tons of flour were imported. In wheat, this amounts approximately to 195,000 sacks. It is certainly some consolation to know that much of this flour is milled i within the Empire, but there should surely be no need in a wheat-growing country like ours, in which a Government department has for some years devoted much time and money to wheat research, for such importations of flour to continue. Incidentally, it must concern Mr Waite closely to remember that Clutha, where much wheat is grown, is one of the districts directly affected by this importation. We would repeat that these facts are greatly to the discredit of the combined millers, who up to this last year were in a position of monopoly and seem to have made little or no effort to ascertain the wishes of the New Zealand public and satisfy entirely their demands. It; is interesting to note, in this connection, that the Government, at the expense of the long-suffering, overburdened taxpayer, subsidises through the Wheat Purchase Board, to the extent of 15s per ton, all flour purchased in the North Island. This, of course, is done in an attempt to prevent importation, and is one more example of the farcical state of affairs which now exists in New Zealand flour-milling. We consider —and Professor Murphys questions at the meeting of the recent Tariff Commission show him to be in agreement with us—that the New Zealand public has been too much at the mercy of the flour-milling monopoly, and take it that the free mills are performing a useful service to the community by restoring some element of competition to this industry. It is an ominous fact, however, that the official statement of the Wheat Purchase Board, printed in your issue of October 20, seems to give distinct warning that in the near future all mills, including the free mills, will find themselves controlled.” The State control of industry, when it results in the stifling of healthy competition and the consequent foisting of inferior products upon a public which refuses to accept them, is entirely vicious. —We are, etc.. Star Milling Company, Ltd., A. L. Steven. Dunedin, November 3.