PRICE OF WHEAT

Otago Witness, Issue 4041, 25 August 1931, Page 18

PRICE OF WHEAT

A STABILISATION SCHEME

LEVY FOR EQUALISATION FUND. CHRISTCHURCH, August 21. An important scheme for the stabilisation of wheat prices for next season which has been drawn up by the New Zealand Wheat Growers’ Co-operative Association and representatives of all the flourmillers in the Dominion was outlined by Air W. A. Mulholland, chairman of directors of the association, to a meeting of wheatgrowers at Culverden and Omihi yesterday. Air Mulholland stated that an agreement had been entered into with the millers’ representatives under which millers would agree to buy wheat at a price to be fixed by a certain definite basis of calculation, and to deduct a levy which would be paid into an equalisation fund, to be available for dealing with any wheat in excess of requirements which could not be sold during the season. The millers also had agreed to pay into the fund anv amounts they received for bran and pollard in excess of, say. £4 10s a ton, while the growers on their nart would agree to nj,ake up out of the levy any difference thWe might be if the price ot bran and pollard fell below £4 10s a ton. The scheme, would be operated by a board composed of an equal number of growers and millers, neither side having a majority, and in the event of any differences of opinion an agreement* would have to be reached by negotiation. A WARNING TO GROWERS. FURTHER DEMANDS INOPPORTUNE WELLINGTON, August 21. “I hope the wheatgrowers will take the advice that has been given them and not open their mouths too wide, because it they make too much noise they will lose the protection they have.” This warning was issued by the Postmaster-general (Air J. B. Donald) in the course of a speech in the House to-day. Air Donald, who did not announce whether or not his statement carried the imprimatur of the Government, said there was a feeling among many members of Parliament that the Government had been giving insufficient attention to the wheat farmers of the South Island. “ But when we consider that those who grow wheat in this country are getting three times the price received by their friends in Australia it cannot be said they are getting unfair treatment,” the Alinister added.

Air Lysnar: They are getting too good treatment.

Air Donald: I suggest that those who are trying to force the Government’s hand for higher protection had better take care because the public of New Zealand will not stand too much. — (’‘Hear, hear.’’) It is more than likely that before long, if the present agitation continues, we will find protection wiped off altogether. Mr Jones: On all goods too? Air Campbell: Boots and clothing? Air Donald: We must have wheat, which is a staple article of diet, and we must have the offal manufactured in this country. The millers and also the farmers should be protected, but it is absolutely wrong that they should be protected above a reasonable limit. The Government has been very generous to the farmers and millers in the proposals it has brought down.

Air Alacpherson: Good to the bakers! Air Donald added that there was no reason why the wheat farmer "should have his land kept at £2O an acre while other

farmers saw their equity dwindling away to nothing. This was particularly so with the sheep farmer and to a less extent with the dairy farmer. ’ A Reform interjector: More so. • Mr Donald: The wheat farmers have been most fortunate, and it would be advisable for them, along with the millers, ‘to realise the favourable position in which -the}’" find themselves. I regret that it is not possible at the present time for the 'poultry farmers of the North Island to get Caome rebate, and I hope it will soon be.come possible for fowl wheat to be im- • ported into the North Island on a lower .rate of duty. The farmers there are en- • titled to a rebate, because the poultry • farmers of the South Island have the . advantage of Is a bushel on the price of . fowl wheat. I sincerely hope the growers ■ will realise the seriousness of the position. . MILLERS AND GROWERS. AN AGREEMENT REACHED. . CHRISTCHURCH, August 21. An agreement has been drawn up for • ratification by the parties concerned be- . tween flour millers and the Wheatgrowers’ Co-operative Association. Tlje , scheme is all ready for adoption by these two bodies, but free growers (those outside the pool) and millers outside their association have yet to accept it. The agreement provides for the setting up of a board of an equal number, of millers and growers, which board will control the scheme. It will determine the minimum price for f.a.q. milling wheat on the basis of a sliding scale of duties. Under the contract of sale drawn up the grower will authorise the miller to pay out of the purchase price a certain sum into an equalisation fund. When the surplus wheat has been disposed of, probably by export, the amount remaining in the fund will be distributed amongst the growers in accordance with the number of bushels ‘ sold through the scheme.