WHEAT AND FLOUR

Southland Times, Issue 22816, 15 February 1936, Page 6

WHEAT AND FLOUR

GOVERNMENT’S SCHEME SUPPORTED A MILLER’S VIEWS “BENEFIT TO INDUSTRY” (Per United Press Association.) Oaniaru, February 14 As there seems to exist a great deal of misapprehension regarding the Government’s new wheat and flour scheme Mr Robert Milligan, a well-known member of Distributors, Ltd., and a prominent flourmiller, who was interviewed to-day, expressed the opinion that it was thoroughly sound and workable and that the flourmilling industry would benefit by its introduction. The consumers’ interests would also be adequately safeguarded. While the sliding scale of duties on wheat and flour did stabilize wheat prices, it had always been possible to defeat the object of stabilizing flour prices by the erection of new mills which in fact took place, resulting in price cutting. “The Government’s scheme has completed the stabilization of both industries, making it effective,” he said. As there is ample milling capacity in the Dominion, to continue adding unnecessarily to production, was a waste of the capital cost, which sooner or later would be borne by the public. The scheme had eliminated all that for it could be assumed that no new mills would come into existence. As the Government’s scheme prevented undue profits, Mr Milligan said he thought there was no ground for criticism and it was all to the good that importations of flour from overseas would cea-e, as more work for our people would thus be provided. A satisfactory feature in the detail was that the staff of Distributors had been taken over for the purposes of the scheme, ensuring its smooth working from the commencement. INITIAL PAYMENT PRICES TO GROWERS ANNOUNCED. (Per United Press Association.) Christchurch, February 14. The Wheat Committee announces that the initial payment to growers has been fixed at 4/5 for Tuscan, 4/7 for Hunters and 4/9 for Pearl. January to March, with the same increments as for last year, commencing in April. These prices are f.o.b. growers’ nearest port, sacks extra. Wheat certified as seed wheat under the seed wheat certification scheme of the Department of Agriculture, in association with the Wheat Research Institute, is exempted from the operations of the regulations.