WHEAT DUTIES

Timaru Herald, Volume CLVIII, Issue 23317, 28 September 1945, Page 4

WHEAT DUTIES

Failure Of Sliding Scale Success Of United Growers (N.Z.P.A > CHRISTCHURCH, Sept. 27. I am taking the opportunity briefly to traverse the history of I lilted Wheatgrowers since its inception," said Mr 11. F. Nieoll. when giving the annual address to tile Electoral Committee of Failed Wheatgrowers in Christchurch. “You will all remember that the sliding scale ol wheat duties which came into operation in 1928 lulled in Ils object oi giving growers the lull value of their product because of two factors'll “It did not provide for controlled imports, and both flour and wheat could be freely imported to compete with the local product. (2> "It did not provide a fixed price, and the figure paid by buyers was depressed if a large crop was hai vested, while even in the event of a small crop, the pressure oi deliveries during the harvest months forced the price down. “As a result of this a voluntary organisation, New Zealand Wheatgrowers' Co-operative Association, Limited, commonly known as the Wheat Pool was formed in 1928 to promote orderly marketing and to commence operations in 1929. A great deal of controversy centred round the formation of the Pool, and only about hall the growers joined up. the balance being still in favour of free marketing. The Pool ran lor three seasons and was successful in maintaining a price to the millers, but at the expense of the growers selling their wheat through its agency.

“At the end of 1931, and as a result of experience gained in the Pool, an organisation which combined all wheatgrowers was formed to handle the harvest of 1932,” continued the speaker. “Poth Pool and free growers were equally represented, and our customers the flourmillers also had seats on the Board.

“This organisation was found to be so successful that both growers and millers approached the Government with the request that a compulsory pool to handle all milling wheat be formed, to market the exceedingly large crop which was in sight for 1933. “The 1946 price has now been fixed at 7/1 f.o.b. irrespective of acreage. This is due to continued representations made by your representatives and to the understaning of the Minister for the wheatgrewers. Compensation Fund

"One of the reasons for the success of the Compensation Fund is the small administration cost. Most of the administrative expenses are capsed through payments of fees and travelling expenses to assessors and to the adjustor. The fund has now been in existence for three years. The premium income is £41,000, the cost of administration just over £2OOO. and claims paid £lB,OOO. The estimated balance at the close of the -wheat year on January 31, 1946 is £20,000, so that it can be claimed that in spite of the heavy drain on the fund due especially to hail damage in the Methven district and flood damage in Canterbury’, that the fund is in a healthy position. “The work of the wheatgrow’ers during the war has not been sufficiently made public. They have responded, year by year, to the calls to grow more wheat made upon them, commencing in 1939 with 5,564,000 bushels they steadily advanced to 9,819,000 bushels in 1943, largely out of a sense of duty to the Dominion, because during all that period they were working und.r severe stress from lack of labour and machinery. If any body of labour deserves commendation for the’r war efforts, the wheatgrowers and their wives should be placed in the foreground, they have well and truly earned it,” concluded Mr Nieoll.

“That a flat price is more acceptable to growers than a price based on acreage” was a resolution passed by the electoral committee. The committee also decided to try to ascertain, as early as possible, the Government’s intentions about the 1946-47 crop. The decision embodying a statement that if a satisfactory price is given the committe is confident that a satisfactory area will be grown. A resolution was passed complimenting- the Minister of Industries and Commerce (the Hon. D. G. Sullivan' for his knowledge and sympathetic understanding cf -wheatgrowers’ problems, and thanking him for his assistance in ail matters pertaining to the wheatgrowing industry. The committee also recorded its high appreciation of the services to wheatgrowers for more than 25 years of Mr Nieoll. now retiring from the position of chairman of directors of United Wheatgrowers

The following were elected to the directorate: —Messrs James Carr 'Mount Hutt). Arthur Craig 'Balcluthai. G. H. B. Lili (Willowby), Colin Mclntosh (West Eyreton). R. T. McMillan Urwell). W. W. Mulholland (Darfieldi. and L. V. Talbot (Temuka).