DUTY ON FLOUR.

Sun (Christchurch), Volume III, Issue 884, 9 December 1916, Page 3

DUTY ON FLOUR.

TO BE REMITTED

BOARD OF TRADE'S RECOMMENDATIONS.

RESULT OF RECENT RISES

At the instance of the President of the Hoard of Trade, the Hon. W. D. S. Mac Donald, the board has instituted an inquiry into the recent rises in the price of flour. The board recommended as a temporary measure that the duty on flour he remitted as from Friday, the Blh instant. Meanwhile the board has under consideration a scheme for preventing fluctuations in prices during the continuance of the war, and will consult with the Board of Agriculture in the matter of giving effect to the policy of the Government as contained in the Appropriation Act of last session, i.e., the encouragement of the growing of sufficient wheat in New Zealand for domestic purposes, and thereby, whilst shipping is disarranged, owing to the exigencies of the war, obviating the necessity of relying on outside sources for our staple article of food. This can only be done by a full and comprehensive scheme, which will be considered and reported upon immediately. Cabinet on Friday agreed to the remission of the duty on Hour.

A STRONG PROTEST. I AUCKLAND MILLER'S VIEWS. Prtse Association AUCKLAND, December 8. The following telegram has been addressed to the Board of Trade by Mr Peter Virtue, of the Northern Roller Milling Company:— "If it is true, your action in re- j moving the duty on imported flour; will place the North Island trade in the hands of the Commonwealth. It is customary to remove the duties off raw materials to keep industries; alive which were built up by protection, as on raw materials there are always two labour handlings, but not so on the imported article manufactured. If the Government wheat statistics are unreliable, as past events have proved, and if the milling industry is not required, what encouragement is there for farmers to grow wheat? Evidently the strategy, if it is prolonged, will have dire results. The Commonwealth duty on flour and wheat is 50/- per ton against the Dominion's 20/-. No doubt to freetraders—the Empire's present curse—it is of little moment. Evidently the Commonwealth is more alert to its industrial and farming interests. Last session a Bill was passed to prevent dumping from the Commonwealth, which was an assurance to encourage wheat growing, consequently milling. How are farmers to view this spasmodic legislation, which will! always tend to create shortages; through want of confidence? With the Government's assurance we purchased wheat at market rates tO| make flour, and as no notice was given that the flour duty would be withdrawn from a certain date, but) the bail-up policy after promising' protection, we think we have a legal right to refuse delivery of wheat purchases. Why not remove the duties off boots, clothing, etc., etc., also the poll-tax on our Allies, instead of singling out one industry, which will soon ruin wheat-growing, with its numerous adjuncts? Doubtless you are aware that if there should be any excess profit the Government takes 45 per cent. Is it your desire to run the wheat and flour industries to the benefit of the Commonwealth, and in the event of a shortage there what remedy would you suggest?"

LOCAL MILLERS' VIEWS

EFFECT ON WHEAT PRODUCTION.

A Sun representative interviewed several of the prominent flourmillers in Christchurch this morning. The millers state that they are not unduly excited over the matter. At the present price of wheat here they are quite unable to compete with Australian flour, as the imported article can be placed in Wellington at £l3 15/per ton. To mill flour at this price, local millers state that they would have to purchase wheat at about 5/per bushel, or more than 1/- below the present figure. Some months ago they saw the present position approaching and advised the Government of their fears. They suggested that the wheat should be taken over at a fixed price—a price that would assure the grower a fair margin of profit and to the public a reasonably cheap loaf. It was a mistaken idea to suppose that millers gained anything from the rising pricej of flour. Flour prices had to be regulated in sympathy with wheat prices, and so far Hour had not risen; at a proportionate rate. At the end: of November, they had been asked to supply returns of wheat in their stores. They felt that if these esti-i mates had been forthcoming a little! quicker they would have been valuable at this juncture, both to those! interested in milling the wheat and! to those who produce it. The Gov-j eminent statistics compiled were felt; to be unreliable, and many were still i of the opinion that there was not! much wheat held in the Dominion.

1 Mr R.'Allan, in commenting on the | position, said that at the back of j every farmer’s mind there was the feeling that possibly in sowing wheal he might at some lime or other strike high prices. Unless he has that inducement, said Mr Allan, he will not grow wheat. WHEAT GROWING. CONFERENCE IN CHRISTCHURCH Yesterday Mr G. Willy, M.H.. received a telegram from the Mon. W. I). S. Mac Donald (Minister of Agriculture) stating that il was proposed to hold a conference of wheat growers next week to discuss a scheme for the encouragement of whealgrowing in the Dominion during the war period and for one year afterwards. The conference is to be held in conjunction with the Hoards of Trade and Agriculture, under Mr MacDonald’s presidency. The selection of four representative wheat growers is left in Mr Witty’s hands. Next ’Thursday is suggested as the date most convenient to Mr Mac Donald and the boards. Should this date be otherwise inconvenient the conference will be postponed until January.