H.— 44.

It is true that consumption is slowly overtaking production, because a reduction in world crops this year has given promise of the ultimate attainment of a more even balance between the two factors. The question, however, is how long will it take for the balance to be struck, especially in view of the present low level of prices in the world's markets for many of the principal raw materials and foodstuffs. The general marking-down in values which the world has been witnessing during the last year or so has naturally led to a decline in prosperity in various countries which rely on outside markets for the sale of their produce, and has had a far-reaching effect on the spending-power throughout the world. In the opinion of one authority the extremely low level of prices at which sugar stands would in the ordinary course of events have stimulated consumption not only in the Western Hemisphere, but also in the Far East where the possibilities of expansion of consumption of sugar are more elastic; but depressed trade conditions and financial stringency have prevented the realization of this increase in demand. While it is impossible at present to form any decided views as to the future, it seems unreasonable to expect sugar to continue indefinitely at its present uneconomic level, and it seems likely that the hoped-for revival of trade generally will bring about an improvement in the absorption of sugar and in the prices of that commodity. Wheat, Flour, Bread. The production of wheat in New Zealand during the season 1928-29 was on a high level, a return of 8,832,864 bushels being obtained from 255,312 acres, an average of 34-60 bushels per acre. The estimated area sown in wheat during the 1929-30 season was 234,500 acres, and the estimated yield 7,100,000 bushels, an average of 30-53 bushels per acre. Notwithstanding the ample supplies of New Zealand wheat available, importations continue, although on a smaller scale than previous years. During the year 1929, 254,491 bushels of wheat and 9,771 tons of flour were imported into the Dominion. Together the importations for the year 1929 represent a quantity approximately equivalent to New Zealand's requirements for one month. The. New Zealand Wheat-growers Co-operative Association, Ltd., was established last year and is reported to be controlling upwards of 50 per cent, of the wheat grown in Canterbury and Otago. During the year 1929, 219,131 bushels of wheat were exported from the Dominion. The following table gives information concerning the grain-mills of the Dominion for the year ended 31st March, 1929 Number of establishments .. .. .. .. .. 52 Value of land, buildings, and plant .. .. .. .. £835,514 Persons engaged .. .. .. .. .. .. 693 Amount paid as salaries and wages .. .. .. .. £173,920 Cost of materials used .. .. .. .. .. £2,310,546 Value of products .. .. .. .. .. .. £2,945,158 Added value .. .. .. .. .. .. .. £634,612 Included in the materials used were 6,300,045 bushels of wheat, of a value of £2,034,404. The quantity of flour produced was 135,722 tons, of a value of £2,281,103. There were also produced 21,147 tons of bran, valued at £148,075, and 32,433 tons of pollard, valued at £262,604. Other products manufactured included 4,282- tons of oatmeal, valued at £100,082. During the session of Parliament last year a special Committee was appointed to examine matters relating to the wheat industry, and to report to the House of Representatives. The findings of the Committee are hereby stated to record the circumstances leading to the special investigation by the Department into the cost of manufacture of flour and bread : — " The items of the order of reference on which the Committee was instructed to report to the House, and the conclusions of the Committee thereon, are as follows " (1) The advantages from a national standpoint of the policy of the Dominion being selfsupporting as far as its wheat requirements are concerned. " The Committee is unanimously of opinion that the Dominion should be selfsupporting so far as its wheat requirements are concerned. " (2) Whether the wheat-growers of the Dominion require protection or State assistance to enable them to market their product in competition with the importations from other countries. " The Committee is unanimously of opinion that the wheat-growers of the Dominion should have some form of protection. " (3) What form of protection or State assistance (if any) would effect that object without unduly adding to the cost of wheat-flour bread, fowl-wheat, and wheat-offal to the users. " The Committee recommends that the present sliding scale of duties affecting wheat and flour, as provided under the Customs Amendment Act, 1927, be continued, but that bran and pollard be admitted to the Dominion free of duty. " (4) Whether protection (if any) is required for the flour-milling industry. " The answer to this question is covered by the answers to the preceding questions, but the Committee unanimously recommends that the Department of Industries and Commerce be asked to investigate the operations of the milling industry with the object of ascertaining whether or not the cost of the production of flour can be reduced.

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