THE WHEAT QUESTION.

Timaru Herald, Volume CXXIII, 11 April 1927, Page 4

THE WHEAT QUESTION.

REPLY TO CHAMFER. OF COMMERCE,

LETTER FROM'HON. F. J, ROLLESTON.

Mr J. Leggott, secretar-y tci the South Canterbury Chamber of Commerce, wrote- to the Hem. F. J. Roljeston, M.T., asking the following questions : (1) The total quantity of all classes of wheat imported into New Zealand during the past twelve months? (2) The total duty paid on these importations ? (3) The total quantity of wheat of all classes imported into Hew Zealand since June, 1914? (4) The total duty paid on the above inportations since Juno, 1924? In reply, the Minister has written as follows :—■

Dealing with tho importations of wheat during the last year, I would point out that the announcement of a free market in regard to the sale of wheat, oaupled with the intimation that fowl wheat would bo allowed into New Zealand i'reo of duty, was made on tho 23rd February, 1920, so that the importations for the year ended 28th February, 1927, givo the results of a period of twelve months under the free market. It will be noticed from the figures given that the total wheat imported during that period was 1,091,176 bushels, and over 60 per cent, of this, viz., 1,070,541 bushels, paid tho full duty prescribed by law, tho total amount of duty collected being £64,233. This, it seems to me. answers the statements reported to have been made at your last meeting that “all wheat that was imported came in free of duty,” and “there had been no duty on wheat coming into this country during the past year or two, and consequently growers had no protection.”- The wheat imported during this period of twelve months free of duty under permit for fowl wheat, viz., 604,760 bushels, constituted little more than one-third of tho importations. The total importations of a.ll classes of wheat and flour during the period under review, in terms of bushels of wheat, was 3,165,660 bushels. If to this we add the Now Zealand crop, amounting to 4,750,000 bushels, we get a total of 7,915,660 bushels. The estimated annual requirements of wheat for New Zealand are, say 8,250,000 bushels. Therefore even allowing for a small margin of error, it is clear that there has been no excessive importation of flour, as is frequently alleged. It must ho remembered, too, that had the weather not been exceptionally and continually fine during the harvest, the new season’s crop would not have been available as early it was. The figures show that in regard to importations of wheat and flour, things were cut about as fino as possible. In regard to the importation of fowl wheat, and in reply to the comments made at the. last meeting of your Chamber, it is fair to state:—

(1) When the policy of a free market was decided on last year, the strongest representations were made to tho Government by the poultry farming industry that unless fowl wheat was admitted free of duty tho industry could not carry on, as their wheat would cost them about 9s a bushel if they had to pay duty. Tho poultry farmers might possibly have carried on by using some kind of food which was cheaper than fowl wheat, hut in tho circumstances tho concession of allowing fowl wheat to come in free of duty was considered reasonable.

The Government received no protest against tin’s, and the amount imported over the whole twelve months was 604,760 bushels, whilo the estimated requirement of fowl wheat for one year is from 1J to million bushels. Ninety-nino per cent, of the importations of fowl wheat went to tho North Island. The interests of tho wheatgrowers would not suffer by tho maintenance of the poultry industry, which would provide a market fflr their fowl wheat in subsequent years. (2) Tho latest permits for free fowl wheat were issued at the beginning of

February, and stipulated for the arrival in' the Domini-, n before the end of February, that’ being considered the earliest date (allowing for possible had weather) when Uie new crop would he threshed and available for use. Tho “Waihora,” which arrived at New Plymouth 'on the 26th February, brought a quantilv of |*'iwl wheat. Some of fins was landed at a later date at both Auckland and Wellington, Imt no fowl wheat was allowed to land in the Dominion duty free unless tile impelling vessel had reached New Zealand belure the end of February. It was anticipated that the “Waihora.’s” shipment would have been landed in New Zealand about the middle of February, hut the vessel was delayed iu Australia for ten days owing to a strike. (3) It was further stated at your meeting that the Government broke the law bv admitting fowl wheat free of dutv. 'This is incorrect, as Section 12 of tho Customs Act, 1921, empowers the Government by Ordcr-in-Council to suspend the existing tariff or create exemptions of duty if satisfied that the existence of a duty or rate of duty operates or is likely to operate in an injurious, unfair, or anomalous manner in respect either generally to the public interest or particularly to any industry, trade, business,' or occupation. (4) Regarding the farther allegation that milling wheat has been imported free of duty under the guiso of fowl wheat, the law provides stringent conditions before a. permit for fowl wheat could he granted, and if anyone makes false statements with a view of defrauding the Customs, severe penalties can lie imposed. The conditions have been strictly enforced, and in ono case whoro a miller used fowl wheat for milling, he was compelled to pay the Government about £7OO. The Government. cannot bo blamed if importers of wheat make false declarations in order to escape duty, hut I give you my assurance that if any member of your Chamber will give. me details of any specific ease in which fowl wheat has been used for milling wheat, immediate steps will he taken against the offender.

Tho attached statement also shews the importations of wheat into New Zealand during tho period 1914 to 1926, and the total amount of duty paid on such imported wheat. During this period tho Government were controlling tho market, and by arrangement guaranteeing a price to tho wheatgrower. The importations made by the Government during those years were only such as wore essential to provide bread for the people, and, as the growers were guaranteed their price, these importations could not possibly bo said to have affected the market.

I appreciate the remarks in the last paragraph of your letter, and I should like to assure the members of your Chamber that T am ready at all times to givo them all the information possible to enable them to come to a decision on a most difficult problem.

WHEAT IMPORTED INTO NEW ZEALAND.

The statement forwarded by the Minister is for the twelve months ended February 28, 1927. Tt shows : Bushels Value

Dutiable whoat imported 1,070,541 359,135 Free wheat (other than Government importations) . . 604,760 204,988 Wheat imported by N.Z. Government 15,875 5,157 Totals .... 1,691,176 £569,280 These figures do not include the importation bv the “Waihora,” which arrives at New Plymouth on 26th February, with approximately 56,000 bushels of wheat, of which 3G,000 was fowl wheat and 20.000 milling wheal, the latter, of course, being dutiable.

The flu tv paid by privnto importers on wheat- imported from 1914 to 1926, was £55,032. The value of the -wheat imported by the Government from 1914 to 1926, was £3,512.700, and the value of the wheat imported by other than the Government in the same period was £799,091.

WHEAT IMPORTS Other than 1914 TO 1926. imported hv dovt. Imported by Clovt. Bushels. Bushels'. 3 DU . . 81,941 19,795 1915 . . 17,479 505,116 191(5 . . . 51.498 11 1917 . . . 111.686 588,290 1918 . . . 181,171 1,189,170 1919 . . 99,826 1,216.195 1920 . . . 126 1,905.017 1921. . . . 90.965 215,214 1922 . . . 5.080 192.1 . . . 290 1924 . . . 41.801 1,506,471 1925 . . . 474.775 1,778,965 1926 . . . 1,250,736 446,649 Totals . . 2,427,441 11.411,117

Total Imports. Value. Uushels. £ 1914 . . . 121,7:16 2-13,925 1915 . . . 522,617 162,461 1916 . . . 51 >>11 15,358 191.7 . . . 719.976 213,633 1918 . . . 1.270,511 401,608 1919 . . . 1,3.16,221 397,107 1920 . . . 1,905,163 585.839 1921 . . . 306,1.29 95.0''2 1922 . . . 5,080 1,4—J 1928 . . . 290 69 192-1 . . . 3.518,339 1,039,774 1925 . . . 2,253.710 798.090 1926 . . . 1,697,385 603,195 Totals . 13,838,778 £4,341,791.