SUPPLY OF FLOUR.

Sun (Christchurch), Volume I, Issue 174, 28 August 1914, Page 9

SUPPLY OF FLOUR.

RISE NOT JUSTIFIED. [From our own Parliamentary Reporter.] WELLINGTON, August 27. Further reference was made in the House of Representatives this evening to the urgent necessity for the Food Prices Commission of Enquiry promised by the Government. Sir Joseph Ward introduced the discussion by reading a telegram from a Mataura resident, drawing attention to an increase in the prices of flour and oatmeal. He remarked that there seemed to.be an under-current of feeling that certain sections of the community wanted to get extreme profits through the preseut trouble. The Prime Minister had promised to set up a Board of Enquiry under the Trade and Commerce Act, and the sooner it was set up the better. Mr H. G. Eli suggested that the mere setting up of the board would act as a cheek on the tendency of many trading in necessaries to raise prices. Mr L. M. Isitt said that two Christchurch merchants had assured him that they had not raised the price of a single article, save where prices had been raised on them, as in the case of flour.

Mr T. Buxton stated that he had taken out figures with regard to the stocks of wheat held in New Zealand, as the opinion was held that the reason for the increase in the prices of flour and wheat was that there was not sufficient in the country to see us through till the end of the year. He had been in the business for quite a fewyears, and he had never yet known an actual deficiency in New Zealand stocks of wheat. He had taken his figures from official books, so far as they could Ve obtained, and it wou'd bp difficult for any miller or merchant to dispute them. " The estimated yield this year was 5,233,045 centals. Up to April 30 flour representing 103,385 centals had been imported, and from then to July there was an additional importation of 75,000 centals. These figures allowed nothing for a carry over, and for "this he had gone over-the figures for ten years, and taken the lowest carry over, namely, 1,640,000 bushels. For many years it was 2,500,000, and once or twice it was 3,000,000. The total quantity of wheat or its equivalent required was therefore 6,660,000, taking requirements at six bushels per head of the population. The quantity required for seed would be 333,548 bushels, which would leave a balance of 236,267 bushels. The flour imported represented 178,385 bushels of wheat. This would leave, giving the very lowest possible carry over, as 1,640,000, a quantity of, say, 240,000 bushels in hand at the end of the year.

Mr Massev: That is cutting it very fine.

Mr Buxton: It was known well by the trade that there were a large number of bakers who had made their contracts for the next four or five months with Australian millers. Their flour, or its equivalent in wheat, was to come into New Zealand in the next three or four months. Since the declaration of war practically no wheat had gone out of the country, the only movement had been the flour that had come in. Had there been no declaration of war, there would have been practically no increase in the price .of wheat. lie did not want to do anything unfair to any merchant or miller, but it seemed to him at this particular time, when everybody was making sacrifices, huge jirofits should not besought. He thought Committees of Enquiry should be set up. , Mr G. Witty said he had heard the Imperial Government had let contracts at 2/11 in' this country. If so, they were paying move than they should. He thought the Government should do what they could to deal directly with the farmers. . " .