WHEAT AND FLOUR

Press, Volume LXIII, Issue 18893, 7 January 1927, Page 10

WHEAT AND FLOUR

THE PROBLEM OF DUMPING

LETTER FROM MINISTER. On Dec-ember 30th last we printed a letter written by Mr D. Joir.>s, M.l'., to the Hon. Mr Downie Stewart, suggesting that in future all invoices of Australian flour imported into New Zealand should have the declaration as to domestic price endorsed by a New Zealand trade official. Under date January -Ith, Mr Downie Stewart lias written the foil-wing letter to Mr Jones: —■

•'With further reference to your letter of the 2'Jnd ultimo, I desire to thank you for your suggestion as to a possible means of obtaining information respecting the current domestic value of shipments of Australian flour exported to New Zealand. "I am afraid, however, that even if it were necessary to devise some special means of obtaining the information to which you refer there are serious objections to giving effect to your proposal. For example, the current domestic value of any particular quality or brand of flour could only be ob- ; tained bv an inspection of the books of the exporter of that flour. New Zealand Government officers have no power to demand the production in Australia of such books, and therefore their endorsement of the current do- i inestic value would have to be based upon such documents as were voluntarily- produced. Again, the Customs Acts* impose on the importer the onus of producing duly certified invoices and of declaring to the correctness of the particulars shown on his entrv. If the course suggested were adopted, the Customs Department might be seriously prejudiced in dealing with any case in which incorrect or fraudulent invoices were produced. If proceedings were contemplated m anv such cases, it would at onco be pointed out that the values had been endorsed bv an officer of the New Zealand Government. Further, if such^ a procedure were adopted with respect to Hour, it would be an extremely difficult matter for the Government to refuse a similar arrangement with respect to any other important article of merchandise concerning which some difficult question had arisen. Flour is exported from certain towns in Australia where no New Zealand Government officers are stationed, and it would be manifestly impossible for such invoices to be endorsed as suggested. . "The difficulty, however, in deter--1 mining whether the dumping of flour iis taking place is not due to the incorrectness or otherwise of the invoices which have been produced or to that of the certificates thereon. Although the onus of establishing a prima facie case of the dumping of any product rests upon those desiring the imposition of dumping duty, my Department lias not been inactive in the matter. ! "Before dealing further with the '■■ question, it will, I think, assist in I clarifving the position if I quote the following passages from sub-sections (2), (4), and (8) of Section 11 of the Customs Amendmeut Act, 1921: "(2) A dumping duty . . . may bo levied in anv cases following, namely: "(a) In the case of goods imported into New Zealand of a class,or kind produced in New Zealand, if the actual selling-price of the goods to an importer in New Zealand is less than the current domestic value or such goods determined in accordance with the provisions of the principal

Act. "(4) For the purposes of this section the expression 'actual sellingprice' of any goods shall not include any charges which are not included in determining the current domestic value of such goods in accordance with the principal Act. "(8) Tn all cases where dumping duty mav be levied under this section, such duty shall be levied, collected. a"a paid, save where the Minister may otherwise specially direct on the ground that the imposition of such duty is not required in the public in"From these provisions it will be seen that the fact that the actual export selling price of flour is less than the current domestic value is not sufficient to justify the Government in imposing dumping duty.

Interpretations. "Tfie above extracts are interpreted to mean that (inter alia) (1) Before imposing dumping duty the Government must be satisfied that flour sold at the same time under similar conditions as to quantity and delivery. is sold for export at less than the current domestic value; (2) In dealing with the question of the imposition of dumping duty, the Government must consider the interests of the whole community including those farmers who are not wheatfarmers. but whose costs of production must be kept as low as possible; (3) Dumping duty should not be imposed on an article imported from part of the British Dominions if the effect of such a duty might be merely to transfer the trade to some other part of the British Dominions other than New Zealand or to some foreign | country.

Values and Prices. "11l connexion with the first point, I am advised that in eight recent shipments selected at random, the differences between the certified current domestic values and the selling prices to purchasers shown upon invoices were £1 ss, £l, 12s 6d, 7s 6d (3), nil, and 2s 6d. In the first-six of these cases, the current domestic value was greater than the selling price, but in the last one it was less. From what lias been indicated above, it will be evident that all these values may be correct (and there is at present no reason to doubt them), and yet under Subsection (2) of Section 11 of the Customs Amendment Act, 1921, as interpreted by Subsection (4) of that Section, tho imposition of dumping duty may not be warranted.

"As showing how some of the difficulties connected with the imposition of dumping duty are viewed by writers, the following extract from one of the few works on the subject of dumping may be of interest. Professo Viner on page 9 of his volume entitled 'Dumping—A Problem in International Trade.' states as follows: "'ln international commerce the sale at different prices to purchasers in different national markets may occur without involving price-discrimination if the price-differentials are merely adjustments to differences in the size of the unit orders coming from different countries, in the length of the credits, in the extent of the credit risks, _ in the grades of commodities, in the time at which the sales contracts were made, in the method of conducting the selling operations, or in the treatment of freight and packing charges. . . . " 'The sale at different prices to purchasers in different markets, when it is i fully explicable on grounds such as these, has a fictitious appearance of dumping, and has been aptly termed "spurious dumping" to distinguish it from genuine dumping.' "

Stocks and Consumption. With respect to the second point, I have been supplied with the following figures showing the stocks of wheat and flour (expressed as tons of flonr) in the hands of millers, grain merchants,

ami principal farmers as 011 November i 30th in each of the following years:— ) Tons. 1023 .. 47,270 1924 .. .. r.0.0u; 1925 .. .. 32.2 M IP2O .. .. 27,325 "I understand that the average annual consumption of wheat- and flour in New Zealand is about ISS.OOO tons. Tlio total quantity of wheat and flour produced in and imported iuto New Zealand up to the aid of November, 192<j, was about loi.ooo tons < i.e.. after allowing for the quantity exported). The figures for the whole of tho month of December are not yet available. but it is evident that at the end of November the Dominion's productions and .importations (omitting ihe quantity carried over from the preceding .year) were short of the average annual consumption by the average quantity of wheat and flour imported in 1920 during a period of months. From the first to the fifteenth of December tho importations of flour were 1-52 tons. The matter is being carefully watched, but it does not appear "that wheat or flour is being imported in abnormal quantities or that the public interest would be served by the imposition of dumping duty oil tiie latter article.

Foreign Wheat. "With respect to the third point, 1 am advised that in a recent case a shipment of United States flour was imported, and it was found that unless a dumping duty of £1 13s per ton could be charged thereon the imposition of dumping duty on Australian flour would tend to transfer the trade to a foreign country -without conferring any corresponding benefit on the New Zealand producer. "As at a later date it may be necessary that in the public interest dumping'dtity should, if possible, be imposed on flour imported into New Zealand enquiries are at present being made as to the conditions under which flour is marketed both for homo consumption and for export in countries shipping to New Zealand. "As your letter has been published in the newspapers, I am handing acopy of this communication to the Press."

HAWARDEN STOCK SALE. At tho llawarden market yesterday 813 fat lambs, 167 fat ewes and wethers, and 39 store sheep were yarded. There was good competition for tho fats, and a clearance was made at prices equal to schedule rates. Lambs —The sales of lamb 3 were:—For J. Bentley, 10 at 2Gs 7d, 25 at 25s Id: T. Innocent, 24 at 2ta; W. "Wright, 21 at 2os 4d; H. D. Burt, IS at 25a 3d; Mrs Dron, 80 at 25s 10d; Murray's Esia,te, 85 at 23s lid to 25s Id; B. L. Hoban, 54 at 25b; Loncey'B Estate, 50 at 23s 8d to 26b 7d; J. A. Rolls, 64 at 25s to 25s Id; D. Bishel!, 28 at 24s 7d; D. Dwyer, 76 at °4s 3d; P. H. stubberfield, 31 at 365; E. A McElwain, 13 at 21s to 03s id; J. W. Warwick, 45 at 24s Sd: Mrs E. Brooker, 50 at 05s; E. W. Johnson, 40 at 255; V D. Bishel], 19 at 25s 4d; Mrs K. l-errier, 23 at 24ft 3d; H. H. Brooker, 59 at 24s Fat Wethers—S. Thoruleigh, 23 at 2os -d; Paweeys Estate, T1 at 23s Id; C. Sexton, 34 at 23s Bd. T Fat Ewes —Murrv's Estate, 13 at 16a; J. A. Rolls, 6 at 16e 7d. Thirty-nine store wethers made 13s M. SOUTHLAND MARKETS.

(special to the pbiss.) INVERCARGILL. January 6. Owing to the holidays, practically no business has been passing during the week, hut possibly with the festive season now over more interest will be taken in the various markets. , „ ~ . Oats.—There are still stocks of old oats held by merchants, but most of these will doubtlesß be disposed of before the new season's Southland crop becomes available. it is probable that very few lines of new season's oats will be ready for shipment until April. In the meantime no farmers lines are offering, and with wool now coming forward freely, most merchants are not anxious to take further lots into their stores. Chaff.—The market is dull, and merchants are holding sufficient stocks. The shirring market has quietened owing to Australian quotations to northern markets. In the present dull state of the market merchants are not anxious to purchase, and farmers wanting to sell would probably have to accept from £4 to £4, Ss a ton on trucks at country stations for prime lines. Ryegrass.—This market also continues dull, though it is possible that a demand may set in any time now which may clear up the bulk of stocks held b7 merchants. Tho prospects for the new season's crop aro not too bright at present, and unless tho trend of events takes a turn farmers will probably havo to accept prices considerably below those which have been ruling during the past _ few years. Potatoes. —The only business being done at present is in new potatoes for local consumption. A fair proportion of supplies ore being drawn from outside markets, but thero arc also a few local lines on offer. 1 Wheat.—Supplies arc being drawn from outside markets to fill the local demand for fowl-feed purposes.

INVERCARGILL FRUIT MARKET, j (SPECIAL TO TBJS PBESB.) INVERCARGILL, January 6. Supplies of stone fruits are now coming forward regularly, and during the past week peaches, apricots, arid cherry plums have increased in quantity. The demand has been very erratic owing to the holidays. Straw* berries are now in limited supply, and the season will very soon close. Currants, raspberries, and loganberries are now coming forward in full supply, and prospective buyers would be well advised to place orders without delay, as the season is late, and will naturally bo a short one. Supplies of hothouse tomatoes aro increasing. Prices are ruling lower. Canadian apples are in very short supply, and the demand is very keen owing to the shortage of other fruits. Heavy supplies of cherries are coming forward. Oranges are scarce, the next supplies being due about January 12th. The market is bare of bananas, and the next consignment will not reach it until about the end of the month. Current prices for the week have been as ' follows:—Strawberries Is to Is lOd; cherries to 2s lid; tomatoes, hothouse to Is 6d, Nelson 9d to Is; apricots to 8d; peaches to 6d; cherry plums to 8d; black currants 3d to 6d; gooseberries 2d to 3d; rhubarb 2d to 3d; navels to 50s; new potatoes 2d to 3d; peas to 3d; cabbages 2s to 3s; carrots Is to 2s a dozen bunches.

: FROZEN MEAT. The Kew Zealand' Loan and Mercantile Agency Co. have received • the following cabled advice from London:—New Zealand frozen meat: Lamb, f)Jd per lb (average); mutton, Jd higher. There is a fair demand.

LINSEED. The following cablegram, dated January 4th, has been received from Landale, Clark and Co., Calcutta, with reference to tho linseed market:—Linseed: We quote £ls 15s for linseed per ton net, C. and F., Sydney, for immediate shipment. The market is dull. HIDES SALES. (Received January Gth, 10.30 p.m.) MELBOURNE, January 6. At the hides sales large catalogues were submitted. The demand was general, and the bulk was cleared at the best rates ruling prior to the holidays. CHEESE PRICES. Messrs A. H. Turnbull and Co. have received the following cabled advice from London:—The price of coloured cbe-so has been advanced Is per cwt.

TALLOW. Messrs A. H. Turnbull and Co are in receipt of cabled advice from London, reading Snnn *i?' « tallow todav, T IV^ S r er L°^ ered ' and 600 Bold. Lato ffttes to 6d less. Dalgety and Co. have received the following advice from their London office, dated January sth:—Tallow: At the weekly aucl'°"< I f| 9 c "Jf s ot 'allow were offered, and 588 sold. Prices for mutton tallow are Is ower, and other descriptions of tallow 6d lower.