THE WHEAT DUTIES.

Waikato Times, Volume 106, Issue 17837, 9 October 1929, Page 5

THE WHEAT DUTIES.

EVIDENCE AT THE INQUIRY. CHAIRMAN OF POOL EXAMINED. REASON FOR EXPORTATION. (By Telegraph.—Press Association.) WELLINGTON, Tuesday. The reasons which actuated the pool in deciding to export surplus wheat were given before the Select Committee of the House, which is considering the sliding scale of duties, by Mr Muiholiand, chairman of the New Zealand Wheatgrowers’ Co-operative Association, commonly known as the Wheat Pool. He said as a general rule during the past decade New Zealand had not produced a surplus, but there were two exceptions—in 1921-22 and 1928-29. During 1927-28 the over plus was greatly accentuated by the importation of wheat and Hour, equal to 1,724,425 bushels of wheat, for the 12 months ended December 31, 1925. in view of the heavy carry-over from 1927-28 and in addition the further surplus of 1928-29 the Wheat Pool was faced with a difficult problem, which would be only solved by the export of at least some portion of the surplus. In reply to questions he denied that export was to keep up prices. He could not give the reason why wheat had to be imported from Australia. They could not afford to hold and carry over, as in time it would mean their ruin. The Chairman, Mr C. A. Wilkinson: What quantities do you propose to export? Mr Mulholland: We have made no dellnite decision as what we are going to export. So far we have made arrangements for the shipment to the end of this month of 5700 tons, or 200,000 bushels. You anticipate exporting further quantities? —That will depend on movements of the world's markets. Stabilising the Market. Apprehension has been felt by some that the export will have the effect of keeping prices on a high level in New Zealand? —We are doing this to stabilise the market. If we were forced to hold the carry-over for 12 months it would mean our ruin. Would not a reduction of price lead to increased consumption in New Zealand? —Not to any extent in regard to milling wheat. Are you shipping on a consignment basis? —Yes, we are at present. Not at a fixed price?—No. The advice we have is that the possibilities of the market rising toward the end of the year are very good indeed. What are you paying for freight? —2ss a ton, or about 8d a bushel. The Minister of Industries and Commerce, the Hon. J. G. Gobbo: W ill not this big export of wheat tend to maintain prices at their present level, and is not that really the reason for your action? Mr Mulholland: We could maintain prices in any case, but the carrying over of large quantities would be disastrous to ourselves. It would ruin us in course of time. Does the law allow you to hold any foodstuff if there is a demand for it? —I do not know about the law. Would not the Board of Trade step in? —They might, but we are not holding up wheat where there is a demand for it. Not Rushing Food Supply.

Ml- j. McCombs, a member of ttie committee: Do you think it is a fair thing, in view of the assistance Hie industry has received, to risk the food supply of tlie people'.' Mr Mulholland: In the first place I do not think we arc risking the people's food supply. In the second place, we could not afford to hold the carry-over. It would cost us Is 6d a bushel to carry the wheat and that would practically mean ruin. Mr Mulholland said if there had been any other way out of the difficulty the growers would have been pleased to take it.