WHEAT DUTIES.

Press, Volume LXVII, Issue 20234, 12 May 1931, Page 8

WHEAT DUTIES.

HEAVY reduction.

EFFECTIVE NEXT SEASON.

STATEMENT BY PRIME MINISTER

(JKBSS ASSOCIATION TJfI.EGKAVO

WELLINGTON, May 11.

It is the Government's intention to ask Parliament to sanction a reduction in the wheat and flour duties next session, it was announced by the Prime Minister, the Bt. Hon. G. W. Forbes, to-day. It is proposed that from February Ist, 1932, the price of wheat shall be reduced by Is 4d per bushel, and that of flour by £2 18s per ton. A bps© price of 4s 8d per bushel is fixed for wheat, the duty on this being 9d, the sliding scale operating as the price varies from the base figure. The base price of flour is to be £l2 10s pur ton, the duty being 32s per ton.

"In view of the recent all-round fall in world prices of commodities, especially of primary products," said Mr Forbes, "it. is considered that the wheatgrower, in common with other sections of the community, must accept lower prices for future crops. An undertaking has been given by tho Government that no alteration will be made in the duties until tho crop harvested this year has been marketed, but it has been decided, as on and from February Ist, 1932, to reduce the duty on wheat by Is 4d per bushel and on flour by £2 18s per ton. This reduction, while giving the wheat-grower reasonable protection for his product, will, at the same time, substantially reduce the prices of flour and bread, and will, through the resulting lowering of the price of wheat, assist the poultry-farmer and other users of the lattor commodity. The Govprttmont proposes to ask Parliament during the coming session to alter the present duties on these articles to the following basis: — "When the current domestic value at the port of export to New Zealand is 4s 8d per bushel of oOlh the duty shall bo 9d per bushel of 601b, provitjed "(a) Whpn tho current domestic value at the port of export to Now Zealand oxeeeds 4s 8d per bijsbel of (501b the rate of dutv shall be decreased by 3d per bushel of 001b for every |d or fraction of $d by whicli the said current domestic value exceeds 4s 8d (f.0.b.). "When tho current domestic value at the port of export to New Zealand is less than 4s 8d per bushel of 6QJb tho rate of duty shall be increased by per bushel of 601b for every $d or fraction of id by wlhicli the said curt rent domestic value is less than 4s Bd. "The present base value for wheat is 5s Gd, the duty Is 3d. Under the new scalo the first figure ia reduced by lOd ancj the second by 6d, giving a reduction of Is 4d.

Flour. '' (a) When tho current domestic value of wheat flour at the port of export to New Zealand is £l2 10s per ton of 20001b, tho duty shall be £i 12s per ton. "(b) When the current domestic value at tjip pprt of export to New Zealand exceeds £l2 10s per ton of 20001b the rate of dijty shall bo decreaseij by Is per 20001b, for every Is or fraction of lp, by which the said current domestic value exceeds £l2 10s.

"(c) When the current domestic value at the port of export to New Zealand is less than £l2 10a per ton, the rate of duty shall bo increased t>y 1? per ton of 20001b, for every lp or fraction of Is by which the said current domestic value is less than £l2 10s. "(d) Where wheat and flour, including wlieatmeal and similar preparations of wheat, is imported in packages weighing less than 1501b, the current domestic value thereof shall be determined as if such good? had been imported in packages weighing 1501b or such other standard weight as the Minister may approve. "(e) Notwithstanding anything in the preceding paragraphs of this tyriffi item the current domestic value of wheat and flour, including wheattneaj and similar preparations of wheat/shall not in any case, be deemed to exceed free on board, the export cash price thereof by more than £1 5s ppr ton, Position, "It is well known that for some copsiderable time past there has been an. abnormal position in the exchange situation between the Dominion and certain other countries. If this position continues tho result might be in effect to increase or lower the duties on wheat and flour that the objects aimed at might be defeated, It is therefore proposed, in tho amending legislation, to make special provision t<i meet this dif' ficulty."