WHEAT INDUSTRY

Otago Daily Times, Issue 23321, 13 October 1937, Page 7

WHEAT INDUSTRY

THE GOVERNMENT’S ASSISTANCE £150,000 ON THE ESTIMATES REPLY TO MINISTER’S CHALLENGE (From Our Parliamentary Reporter' WELLINGTON, Oct. 12. The opinion that the provision on the Estimates for the sum of £ 150,000 for assistance to the wheat industry might be reduced with advantage was expressed by Mr S. G Holland (Opposition, Christchurch North) during the second reading debate on the Land and Income Tax (annual) Bill in the House of Representatives to-day. The Minister of Education had challenged the Opposition to name any one item on which the expenditure should be reduced in order to lighten taxation. Mr Holland said that he himself would have no hesitation in pointing to the vote for the Industries and Commerce Department. He challenged the wisdom of providing on the Estimates a sum of £ 150,000 “for asistance to the w'heat industry.” The Government bought wheat from the grower at one price and sold it to millers at a lower price, so that the country was being taxed £150,000 in order to make up the losses incurred by the Government in keeping down the price of bread. There was no use of public credit in that direction. The consumer was really paying the higher price through taxation. “ There are other instances,” Mr Holland added. “ The administration of the Labour Department will cost £160,000 more this than it did last year. Ido not think it is giving that amount of extra value.”

“ It costs the people of New Zealand £300,000 a year if the price of a ,21b loaf of bread is increased by a halfpenny,” said the Minister of Industries and Commerce (Mr D. G. Sullivan) when replying to the point made by Mr Holland. “ The Minister of Education (Mr P. Fraser) challenged the Opposition to suggest any service provided for in the Budget which might be curtailed to permit reduced taxation,” Mr Sullivan said. “ That nonplussed the Opposition, and the budding leader—he was an aspirant for the position anyway—showed us how he would reduce taxation. He concentrated on the Department of Industries and Commerce and challenged the sum of £150,000 provided for the encouragement of the wheat industry. He would take that sum off the Estimates. Surely that is extraordinary, coming from a Canterbury member of Parliament. “To carry out what Mr Holland has suggested, it would be necessary to do one of two things,” the Minister continued. “It would be necessary either to deprive the growers of that assistance or to pass on an increase of approximately £300,000 to the public in the price of bread, for to increase the price of a 21b loaf by a halfpenny, the smallest unit in our coinage, would cost the people that amount.”