PROTECTION FOR MILLERS

Taranaki Daily News, 11 June 1932, Page 4

PROTECTION FOR MILLERS

WHEAT IMPORT PROPOSALS

WHAT ABOUT FLOUR CONSUMERS? VIEWS OF COMMERCE PRESIDENT. “The net effect of the proposals, is further to help the milling industry, instead of securing to the public the benefit of cheap wheat without any hardship to the local grower,” said Mr, L. M. Moss, president of the Taranaki Chamber of Commerce, when interviewed yesterday regarding the statement that a request to import a limited amount of wheat had been favourably considered, by the Government. According to a telegram from Wellington published yesterday morning, the Prime Minister, the Rt. Hon. G. W. Forbes, said that aa a result of damage by heavy rains in the South Canterbury district in February it had become evident that this year there would be insufficient wheat of good! millable quality available for the Dominion requirements. This was. having an effect upon prices. Fowl wheat was being sold at prices slightly above prices which millers could offer for supplies of gristing. Representations had been made to the Government', and the Wheat Marketing Board (representing millers and wheat-growers) had asked to be allowed to import and distribute a limited quantity of milling wheat. at prices that would not involve an increase in the prices of flour and bread. “The wheat would be in a large measure used for mixing with New Zealand grain,” continued Mr. Forbes, “and would thus enable a greater proportion of New Zealand wheat to be used for the production of good quality flour. Importation as suggested should at the same time assist poultry farmers . to secure their requirements at prices lower than those at present ruling. The request has received the favourable consideration of the Government and provided that the matter can be arranged on such a basis as to deal fairly with the interests of all parties the suggestion may be acceded to.”

MR. FORBES 1 STATEMENT.

It was this statement to which Mr, Moss was referring. “The Prime Minister’s statement is an admission that there is a wheat shortage in New Zealand,” he said. “His proposal for the remedying of this shortage is to permit the milling combination to import wheat at a specially reduced duty. But there is no indication that: this will mean any reduction to the public in the price of flour, as would have been the case had the duty on flour been lowered.”

The reason given by the Prime Minister was that bad weather in February had caused a shortage of milling wheat, but Mr. Moss said that presumably the protection suggested was. a protection for the millers and not for the public. He pointed but that when the duty was reduced on March. 1 the price of milling wheat dropped to 4s Bld, compared with the 5s 91d of March, 1931. However, the price of the inferior fowl grade, which was 4s 7d in March, 1931, went to 4s 7Jd in March, 1932, and had continued to rise until to-day it was 4s 9ld f.o.b. sacks extra.

.The excuse given by the holders of fowl wheat, continued Mr. Moss, was that the weather had been so good that the proportion of milling quality was high and. a shortage existed in fo.wl wheat, of which they were entitled to take advantage. The iniquitous sliding scale duty permitted them to do so, with the result that fowl wheat became dearer than that of milling quality. In the North Island wheat could be landed from Australia c.i.f., sacks in, at approximately the same expense as was incurred in bringing fr from the South Island. .

“Is not the obvious remedy to permit the importation to the North Island of wheat for fowl food at a reduced duty, instead of leaving the poultry industry at the mercy of holders of fowl wheat, who, on the statement of the Prime Minister, have no justification for forcing up prices?” asked Mr. Moss. “The statement ignores,. however, the claims of the poultry industry, which can expect no relief at all if the present proposals are put through.”