FLOUR DUMPING.

Press, Volume LXIII, Issue 18899, 14 January 1927, Page 10

FLOUR DUMPING.

AUSTRALIAN SUPPLIES. MR JONES AND THE MINISTER. The following letter has been sent by Mr D. Jones, M.P., to the Minister for Customs:— I have to thank you for yours of the 4th inst., in reply to ray letter to you on the dumping of Australian flour in New Zealand. I am very pleased to have your assurance that ''the difficulty, however, in determining whether tho clumping of flour is taking place is not due to the incorrectness or otherwise of the invoices which have been produced or to that of the certificated thereon." In proof of this you give seven illustra tions six of which show that the price paid for export to the Dominion was up to 25s per ton below the Australian price for domestic use and one above, the i'lustration would be of even greater value if the quantities had been given.

It appears quito clear that this is evidence of dumping taking place, unless there are differential charges as referred in sub-section 4, and this matter your Department is investigating. In connexion with wheat and flour, Parliament gave tho farmer a measure of protection, and in common with other industries it safeguarded that protection with legislation to jjrevent dumping. f was a member of the House in 1921 when the Aqt was passed, and on the second reading of the Bill the late Prime Minister (Mr Massey) said (Vol. Hans. 192): "Then thero is another very important proposal in the Bill dealing with a very important and what might or might not have been a very serious matter—l refer to the provisions against dumping. The provisions againwt dumping are about as drastic as M is possible to p?ace upon the Statute Book, but in my opinion, they aro not too drastic. It "may he a good thing for the country in which the poods-are -manufactured.'but it is ft bad thing for the countries in which the goods are sold, often much below the cost of production, and such practices are ..not unknown in New Zealand." .

In' the same debate you quote the following extract: ",The following directions as to procedure have receiv T ed the approval of the Government: To provide machinery to prevent 'dumping or unfair competition with industries established' i'u'NW Zealand. To grant protection to new industries only where it can be' shown that, a .substantial amount of capitals invested, "that the Industry is fully equipped with,the most modern 'appliances and that its output is likely to. £orin •a, reasonable proportion of-''tfie. total needs of the Dominion, and that tho goods produced are reasonably comparable with "those produced abroad." And later you say: . "The honourable ■mjemb.er - admitted, that most, of the. chief, defects lie saw'.'in the ' tariff ,to .begin withj have been removed' sinco wo .have met-the Australian situation, and' in view of the fact'that'.we are taking power to protect ourselves .again'sb;'diimpiiigl'?Tho will of the Government and Parliament could Hot' be more clearly stated, and the farmer has produced a reasonable 1 proportion of' the total needs of the Dominion'a .wheat. I submit, sir, that'the farmer should not be asked to prove dumping is taking "place; Parliament has given authority, to the Minister to act and the.power to obtain the • information; the farmer has no such means. Mr Hawken is reported to have said at Asbburton that if dumping was proved,. the-. Government would act. We want that promise carried out if your Department has evidence that dumping is taking place. I admit it is'a difficult matter, but the House was informed that tke Act was similar,to the one in Canada and' Australia, and they put their Act into operation when necessity arose. In "view of Mr Hawken's promise, I presume the question of ''public interest" will hpt arise, but if it did, I am satisfied you would see the reasonableness of this present claim. The farmer is paying very heavy toll in Custom duties, and<we have to/carrv this load, and compete in the'/world's markets with ther gr^atj.bulk fof what we grow.'. Every, country member knows the. .hard- striiggle' 'th'rfti a'./la'rgel per--ceritage of hid farmer constituents hay 6 (and? Men /'whose' laiicL'-is • reasonable in; and'no 'm'embwj has'empna : Bißo'd*''tWs l than' the' ; Minister; : for - ;!:v::! v - ! '{ ■ •■;' '''-.' ■.'. v '■■.!

. JTbci'laige, area in wheat this year-is pearly; alL'labour!" and.', jut eraplo^entVwJJ;..disappear, for week's, Ww«T';th<s .'crop, is .being ,harvested*•'■s4'?B: ft P|° r \¥he^iS/«d Jppn cfyeapesV fbpd inithe'ljqmiiion;-., " .» .'," I riotp; whbjt you .say. about, the size of! the 'im jpr.t» : at present, but; this small price oJjjthe : vrholej pf, the- ;incoming ■wheat.'cropr-in-;two. weeks' -time this crop 'willihe.7 coming on: the' .market, and 'the'.farmer-most in..n.eed: financially; wiH -have-to- sacrifice bis. grain fpr prompt 'saie;;at a' price "below its true value*; •" "'v '■•■"■ "■' '"■' '., .' ' ', ■ Further,'.l"would> point out that the Department) of fndtJstr'ies arid Commerce have emphasised that flour should have an additional'2oß per ton,duty imposed: to bring! it on a parity with wheat '{ r \ ■'' ".'"'■"• ','■■_.. .!.„; PariJament'Tias 1 given to the Minister for Custbrns the,po\ver. to make this adjustment in'addition to au : thorHy."rtKat;.can: 4esl. effectively with dumping/ . ~ J -, I ini.aware-that, you,have some time ago notified -the -Australian Government that .this duty-may be. imposed and consequently it can be imposed immediately, if you desire it. N.Z. DAIRY PRODUCTS. i . .• . ■• DEMAND IN AUSTRALIA. [THE PRESS Special Service.] AUCKLAND, January 13. Despite reports of an improvement in the dairying situation in New South Wales Victoria, and Queensland as a result of the rains in December, it \ would appear that Australia is likely to continue the importation of supplies from New Zealand As a matter of fart enquiries have Aeeri received in Auckland lately asking for quotations'for delivery from March en Last season Australia, beat New Zealand for a fair amount of Canadian trade which New Zealand formerly helrt and thus disposed of about 60,000 cases. This season the Dominion will recover the whole of this business.. GOLD QUOTATION. (BT CABLE-PHISS ASBOCIATION-COPYBIOHT..I (JIUBT«*I,IA» AND V.4.- CA3LB ASSSOCIATIOKJ (Received"January 13th, 5.5 p.m.) LONDON,' January 12. Gold is quoted at £1 Is lljd per OR