THE PRICE OF FLOUR.

Taranaki Daily News, 7 May 1926, Page 9

THE PRICE OF FLOUR.

STRONG PROTEST MADE. c ' pIG DISCREPANCY SUGGESTED. COMPLAINT TO THE MINISTER. i That a flour-milling organisation had singled out the firm with which ho was associated, and that after 35 years in the trade it had been struck off the list of wholesale distributors was alleged by the chairman (Mr. Gordon Fraser) at the quarterly meeting of the Chamber of Commerce last night. It was owing, he presumed, to the fact that he had again and again called the attention of tha chamber to the suggested injustice of using the taxpayers’ money to increase the cost of the daily bread. “The strong agitation by this chamber, in conjunction with the farmers’ unions of Taranaki, for the removal of the embargo on the import of flour, was strongly supported throughout the North Island," continued Mr. Fraser. “The Government finally decided to permit import provided the duty of £3 a ton was paid. Notwithstanding high wages and short hours in Australia, the price ruling there has been such as to enable importers to pay the duty and freight and yet sell in New Zealand considerably under the price the local flour combination was prepared to take. Consequently very large quantities have come into the North Island, including direct shipments to Taranaki. “Last week a Canterbury deputation was organised to endeavour to persuade the Government to increase the duty on flour to £4 a ton, or re-impose the total prohibition of the import of flour, and so eliminate this outside competition.

“Despite the methods of attack,” continued Mr. Fraser, “we must continue to call attention to the large discrepancy between the price of wheat and flour in Australia and in this Dominion, and tb urge the Government to closely enquire whether the present high protection is warranted. We must certainly vigorously protest against any suggestion of still heavier burdens being placed on the bread consumer.” Wheat was 6s, rising to 6s 6Jd in Australia, said Mr. Fraser in reply to a question. Flour was £l2 12s 6d, sacks in, when wheat was 6s 5d f.o.b. sacks in. In New Zealand wheat at 6s Bd, sacks extra, was considered as equivalent to £lB f.0.b., sacks in, less discount. Mr. W. J. Penn said that if Australia could sell flour at £l2 12s 6d and buy wheat at 6s 6d, in New Zealand they should be able to sell flour at about £l4. Mr. Fraser: The millers wanted first the total prohibition of the importation of flour, and if they could not get that they wanted a £4 duty. Mr. P. E. Stainton considered there were too many mills in New Zealand compared with Australia. Here they were not working the mills as long as they could be worked. The result was that overhead charges were increased. “If such an Act were brought in by the Labour Party there would be a howl from the housetops that Labour should be removed,” he added. With regard to the action taken against Mr. Fraser’s firm, he suggested that the chamber should bring the matter to the notice of the Minister.

Mr. Stainton agreed that the Government should have the information in order to strengthen its hand against the organisation. On the motion of Mr. Stainton, Seconded by Mr. McNeill, it was decided that a strongly worded protest be sent to the Minister (the Hon. 0. J. Hawken) setting out the position fully, and that a sub-committee be set up to carry the protest to a definite and satisfactory conclusion. Messrs. Stainton, McNeill and Nisbet Smith was appointed a committee.