WHEAT CONTROL

Poverty Bay Herald, Volume LXIV, Issue 19258, 25 February 1937, Page 5

WHEAT CONTROL

FIXED N.Z. PRICE

BIGGER ACREAGE SOUGHT

DOMINION REQUIREMENTS

APPEAL BY MINISTER

(Per Ptbsb Association.) WELLINGTON, this day

The Minister of Industries and Commerce, the Hon. D. G. Sullivan, announced yesterday that the following hud been appointed as members of the Wheat Committee under the Board of Trade (wheat and flour) regulations, 1937, whiqh were gazetted last- week: Messrs! L. J. Schmitt, secretary of the Industries 'and Commerce department. deputy chairman; A. Grant. W. \\ ■ Mullholland, and H. F. Nicoll as representatives of the wheat growers; A. 1 • O'Connor and H. Worrell, representing the flourmillers;, and C. Cowan, representing the master bakers. The Minister himself is the chairman of the committee under the regulations.

"The Minister stated that the new committee had held its first meeting and amongst, the matters considered was the perfecting of the rationalisation of the wheat industry, with particular reference to increasing the acreage to be planted in wheat, so as to provide, us far as ; possible, for the whole of New Zealand's requirements.

'"The committee is taking all possible steps to this end," said the Minister. "One. important part of the wheat committee's work in this connection will bg' .the further investigation of all avenues for a reduction in the cost of wheat-growing and allied industries. On the' completion of its investigation, the committee will submit its findings to the Government.

METHODS OVERSEAS

"While the committee has a consider.

able fund of information concerning whoat control schemes in other parts of the world, it is, nevertheless, taking immediate steps to ascertain the latest methods employed by other countries, particularly for ensuring that an adequate acreage is grown. These inquiries ar« being undertaken by the Government trade commissioners in various parts of the world. "Advantage will also be taken of 'the visit shortly to bo made by Mr. E. H. Hullett, the chief chemist of the Wheat Besearch Institute, to various wheatgrowing countries to inquire into the production and harvesting methods. "As an integral part of the plan for increasing the area to be sown this year, the committee is seeking the co-opera-tion of the united wheatgrowers' organisation, stock and station agents, grain merchants, implement manufacturers, and other interests directly engaged in the production and marketing of wheat." The Minister stated that in any plan

for the rationalisation of an industry

the producer and consumer must be considered. "In the very nature of things, consumers, of a commodity like wheat must far outnumber those engaged in its production," he continued. "Faced with their* own*, peculiar problems, the producers are, at times, inclined to lose sight of the consumers' interests. WAYS OF ASSISTANCE "There are two ways in which the producer may be assisted from the economic point of view. One is by increases in prices, and the other by a reduction in costs. When an attempt is made to rationalise an industry which is only, just holding its own so far as profits are concerned, the first demand of those engaged in that industry is almost always for an increase in. the selling price. "We can all make profits if a benevolent power steps in and fixes prices at a figure to cover all costs, and leave a margin of profit without regard to efficiency, but this would not be rationalisation in the public interest and in the wheat industry in particular. The Government has adopted a policy having regard to the fact iriat there are about 20,000 people engaged in the production of wheat, and over 1,500,000 people to consume it. "With this position in mind the Government is fixing the price of flour

and bread at a figure which will ensure those millers and bakers, who ] operate their plant efficiently, a reasonable return. These prices are not fixed'without a full and thorough investigation of the industries concerned, and the wages and conditions under which the workers are employed. REDUCTION IN COSTS

"For effective rationalisation at the wheat-growing end. it is necessary to determine, as nearly as possible, the cost of producing wheat on a reasonably well-managed and efficient farm. As previously pointed out, profits can be ensured, not only by increase in ttie selling price, but by a reduction in production costs, and it has been found that, even with the higher wages, up-to-date and efficient methods make for a reduction in costs. "It is the intention of the Government to explore every avenue for cost reduction with a view to perfecting the plan for wheat-growing, and to ensure the very vital matter concerning the growing of a sufficient acreage to supply our full requirements, the Government has done two things of great advantage to the wheat-grower. "It has placed an embargo on imported wheat and flour, thus conserving the whole of the New Zealand market for our own growers, and it has fixed the price a year in advance, thus removing all doubt in the mind of the farmer and ensuring a fair return for wheat, even if all other prices fail. DEFINITE GUARANTEE "There is no-guarantee that wool and lamb will remain at 'the present high level. Wheat fanners have n definite price guaranteed for wheat. and it is relt that the price fixed is a sufficient inducement to grow it. "I want the wheat-growers thoroughly to understand that I expect ■them, collectively and individually, to co-operate with the Government and myself in doing everything possible to achieve the object I have planned. It is impossible to obtain satisfactory results when the whole of the effort and endeavour is left to a few.

"In appealing to the growers, I am in earnest when I say that unless they make genuine efforts to assist rne hv sowing sufficient waeat this year to satisfy the requirements of the whole oi t}ie Dominion," I may be obliged to ask them whether it is their desire that the scheme of wheat control should be continued or not."