WHEAT DUTIES FAIL IN THEIR OBJECT

Waipa Post, Volume 31, Issue 1766, 5 June 1926, Page 7

WHEAT DUTIES FAIL IN THEIR OBJECT

SHOULD BE REDUCED TO PEEWAR LEVELS.

RESOLUTION'S BY CHAMBER OF COMMERCE. At a recent combined, meeting of t)be Taranaki Chamber of Commerce and the Taranaki Farmers’ Union the decision of the Government to enforce a protective tariff on wheat and wheat products was objected to on the ground that it did not attain the object for which it was imposed, namely, the encouragement of wheat growing in New Zealand. & The Palmerston North Chamber of Commerce was asked to consider the situation, and, if it deemed fit, support the Taranaki protest. As the Manaiwatu district was not a wheat-growing area members expressed themselves as being a little in the dark on the subject, but set up a committee to report. This report was presented at last meeting of the Palmerston North Chamber of Commerce by Mr H. E. Pacey, who said that the committee, after careful consideration of the matter, recommended the passing of the following resolution:

“ That this meeting of the Palmerston North Chamber of Commerce declares that the policy of high protection for wheat and flour, and scheme for the control of the same, which were first inaugurated d,uring the war period, have not only failed in their object, but have frequently increased the cost of wheat, flour, and by-pro-ducts to the whole community. “ Further, that the necessity for such war measure no longer exists. “This Council therefore emphatically resolves: — “ 1. That no form of control of wheat and flour should be renewed. 2. That all duty on wheat and the wheaten products should be reduced to the rates 'which prevailed immediately ph’ior to the war. “Further, that a copy of the resolution be forwarded to the Prime Minister, the Minister of Agriculture, and the Associated Chambers of Commerce.”

Seaking to the resolution. Mr Pacey stated that the wheat requirements of New Zealand were eight and. a half million bushels, of which amount it grew only four and a half millions. Twenty years ago New Zealand produced thirteen million bushels, so it was quite evident that the policy of control that was started to ensure adequate crops within New Zealand had failed. .The crops had gradually fallen off year by year. The shrinkage was said to be d.ue to the uncertainty regarding the control policy, and to the •fact that other forms of farming paid bettor. In the interests of the country the untrammelled conditions of the pas should be reverted to. The consideration had been that New Zealand ought to grow its own wheat, but that end had not been attained. The. duties at resent were £3 er ton on flour and 2s per cental on wheat, which worked out at Is 3d per bushel. The previous duty on flour was 20s er ton and on wheat 9d per cental. Mr Pacey considered that, if the pre-war duties were reverted to it would do a substantial justice to everyone, and, these conclusions had been supported by eminent professors of economics. The resolution was carried.