9

H.-44

by the world's market value of wheat in February, 1922, of similar quality to New Zealand wheat, having regard to the necessary adjustment-, between North Island and South Island ; but in any case the purchase price will not be less than the minimum stated above for the respective varieties with the monthly increment." CONTROL OF WHEAT AND ITS PRODUCTS. The detailed supervision of the trade has been in the hands of the Chairman of the Board (Mr. W. G. McDonald) in his capacity as Wheat-controller, while the prices have been fixed by means of the powers conferred under the Board of Trade Act, 1919. The purchase and sale of wheat and the payments for flour subsidies have been the work of the Wheat-control Office, Christchurch, while the regulation of bread-prices has been attended to by the Board of Trade. The following table shows the prices of bread as fixed from time to time during the period Ist April, 1919, to 31st March, 1921 :—

PROFITS OF THE WHEAT-CONTROL OFFICE. With regard to the operations of the Wheat-control Office in the purchase and sale of both New Zealand and Australian wheat, the revenue accounts show the undermentioned net profits : — £ s. d. Year ended 31st December, 1918 .. .. .. .. 10,672 9 8 Year ended 31st December, 1919 .. .. .. .. 15,567 12 5 Yeai ended 31st December, 1920 .. .. .. .. 125,104 10 5 Although the absolute net profits are considerable, the percentage of net profit on sales was extremely low —far lower than the rate on which any private enterprise could safely work. The profits thus derived served to reimburse the Consolidated Fund for a portion of the payments made as subsidies to keep bread-prices low. These flour subsidies paid by the Government amounted to — £ Year ended 31st March, 1920 .. .. .. .. ..358,305 Year ended 31st March, 1921 .. .. .. .. ..489,571 The Government's decision to reduce the amount of the flour subsidy for the year ended 31st March, 1922, to approximately £150,000 necessitated a rise in the price of flour from £16 10s. to £21 per ton, f.o.b. southern ports, and an increase of Id. on the price of the 2 lb. loaf. As it is impossible to review adequately in this report the measures of control adopted by the Government in connection with wheat and flour, a special report (to be issued later) is being prepared. GENERAL REVIEW OF OPERATIONS. The following return shows the quantity of wheat handled under the scheme of Government control : — Wheat purchased. Bushels. 1918—New Zealand .. .. .. .. .. ..4,926,857 Australian .. .. .. .. .. .. 633,644' Australian (ex Imperial supplies) .. .. .. .. 225,678 Total.. .. .. .. .. .. 5,786,179 1919—New Zealand .. .. .. .. .. .. 5,252,210 Australian .. .. .. .. .. ..1,339,235 Total.. .. .. .. .. .. 6,591,445 1920—New Zealand .. .. .. .. .. ..3,897,123 Australian .. .. .. .. .. ~ 2,018,533 Total.. .. .. .. .. .. 5,915,65fi Grand total (three years) .. .. .. 18,293,280

2—H. 44.

Period. Period. Maximum Cash Price per 2 lb. Loaf. North Island. South Island. Maximu: per 2 im Ca: 21b. I osh Price Loaf. irenoa. Nc orth Islam id. So outh Isli 1st April, 1919, to 28th February, 1920 1st March, 1920, to 14th March, 1921 1.4th March, 1921, to 28th February, 1922 i 5|d. 6d. 7d. 5d. 5|d. 6|d.