THE WHEAT PUZZLE

Poverty Bay Herald, Volume LII, Issue 17088, 17 July 1926, Page 5

THE WHEAT PUZZLE

STRATEGY OE'ITIE MILLERS

SOME STRAIGHT SPEAKING

GOVERNMENT STANDS

EJRM

(Parlinuvjilary Reporter.) WELLING TON, this day

Some comment on the wheat pus lion in New Zealand and certain :i< rions of Distributors Ltd., was mail by Mr. D. .Jones (Ellesmcre), in th Rouse last night. Mr, .Jones said tlia the farmers had been subjected to : good deal of criticism over the when question. As n representative of fh largest wheat growing district in Nov Zealand ho said that there would hav been plenty of wheat in the Domin ion if the weather conditions las sowing season had heen good. Tin Government's policy had been altered and there was now a fixed duty 01 wheat. He thought that next seasoi there would be plenty of wheat. A peculiar position had arisen however, on account of the action o Distributors Ltd., which was import ins fbmr into New Zealand, said Mr Jones, and was reducing the. price, o Hour in the North Island while in creasing it in the South Island. FIXATION OF PRICE. To his mind the position was quid clear. Distributors Ltd. endoavourcc to fix a price for wheat last year, am to induce their members not to go be yond that. Many millers fell "the price arranged hv Distributors Ltd. was tot low, and a large number of then went beyond ii, with the result tlia 1 they had sutb'c.iont wheat' in theii mills to cany then: through until next wheat, season. Prominent members ol Distributors Ltd. had re/used to go be yond what they considered a fail price, and they now had very little wheat left. They \*oi'o consequently starting an agitation., and the worker.' in their mills were assisting them, foi the importation of wheat into the .south Island. Distributors Ltd. knew that unless they could increase th< price of flour in the South Island, that it' the Minister did take oil the whole of the duty, they would be still unable to manufacture flour at "a profit at £lB a ton. . CLEVER OR FOOLISH. Probably with what Distributors Ltd thought was very great cleverness, but which he regarded as very great foolishness when a long view was taken, they considered that if the price of flour was lifted in the -South Island this would be in line with the

proposal they were making that wheat should be brought into the South Island for milling purposes. The Minister of Agriculture had stated definitely that the Government was out, of

the wheat question. It had fixed a duty, and he was very pleased at the attitude the Minister had taken up. The policy might cause a little hardship for "a time, but in the end it would give more wheat to New Zealand than any other policy. He hoped the Minister would make a statement showing that he was going to adhere to his policy. THE MINISTER'S REPLY. "'l'll,' Government's attitude on the wheat question remains the same," stated the Minister of Agriculture, the Hon. O. .1. Hawkin. ".It is unfortunate that insuilicient -wheat was grown in Xew Zealand last year, but the Government is still of the same opinion that the ordinary course of trade should be followed, and that the Government should not interfere in this question," he declared. He understood that some millers bought sufficient wheat for their requirements, so it would be obviously unfair to those millers if the Government took up anv other attitude. A SUtlieienl area had been sown in wheat to provide for next year's requirements if condition* were normal : ,„d he believed that .except for odd years. New Zealand farmers would, under the present position of the tariff, always sow sufficient to meet the Dominion's needs.