AUSTRALIAN FLOUR TAX

Otago Daily Times, Issue 23685, 17 December 1938, Page 23

AUSTRALIAN FLOUR TAX

BREAD RISES £d A LB SYDNEY, Dec. 9. The price of Australian bread has risen one penny a 21b loaf as a result of legislation passed by the Federal Parliament last week to impose a tax of £5 15s a ton on flour to ensure a home consumption price of 4s 8d a bushel for wheat. The home consumption price scheme was evolved a few months ago at a conference of the State Premiers in Sydney. For the first time, all six States were in agreement on the necessity of such a scheme, and that being so, the Federal Government agreed to make the scheme constitutional by passing the flour tax legislation, and this has now been done. At the time of the Premiers' Conference and even as .late as last week in the House of Representatives, assurances w,ere given that the price of bread would not be affected by the scheme. That is why the 20 per cent, rise in the cost of bread has shocked the public. Bread varies in price in the different capitals. In Sydney it is 6£d a 21b loaf delivered, or 5Jd over the shop counter—the State Government has announced its intention of proclaiming a maximum shop price of 5R The master bakers are as angry as consumers at the necessity of increasing prices. They are merely acting as collecting agents of the What the people particularly resent is that the tax falls most heavily on consumers least able to afford it—the poorer classes with large families—and that it benefits all wheatgrowers. The extra cost to a man, wife and five children has been estimated at nearly £7 a year. It is a fact that many wheatgrowers on good land and bv good methods can make the industry pay. even at present low prices—the larger their crop the greater benefit they receive. The men with droughtstricken crops are given less help, and so their parlous position is oerpetuated. A Drophecy made in one of these articles when the home consumption price scheme was agreed to that there would be a frantic game of "passing the buck" has been realised. The Prime Minister, (Mr J A Lyons) in his apologia to the electorate, savs that the responsibility is on the States to fix bread prices The States say they cannot equitably fix prices lower than is warranted by the flour tax imposition. As for the tax itself, Mr Lyons said: " The test of the acceptability of this legislation to the people of Australia cm best be gauged by the attitude of their elected representatives. The plan was unanimously proposed by the Premiers, who represent all shades of political opinion. The Commonwealth Government acceded to the unanimous request of the Premiers to supplement their legislation. Every State Parliament, comprising 11 Houses in all, passed the price-fixing legislation, and both Houses of the Federal Parliament also endorsed the principle of the legislation. It is seldom that a piece of legislation is required to pass such a test. The Commonwealth Government believe that the people of Australia stand for a remunerative price to for that portion of their product which is consumed in Australia This is in line with what is done for other sections of the community—for the worker through the Arbitration Courts and the basic wage machinery, and for the manufacturer through the tariff."