£950,000 WASTED

Chronicle (Levin), 4 September 1946, Page 4

£950,000 WASTED

— Press ' Association

Farmers Charge Government PAYMENTS FOR WHEAT

By Telearaph

WELLINGTON, Sept. 3. In a press statement today, ± eaerateci Farmers said the Minister of Industries and Commerce would have to suppiy satisfactory answers to questions on tne - following. matter, whicn were asked him in the House on August 23 by Mr. Gerard, M.P. for Mid-Canterbury, if the Minister wished primary producers tohave any confidence in future negotiations with the Government. 1 ' On July 4'Mr. HoUand stated in the House that the Government was paying 9s ld ger bushel f.o.b. for Australian wheat while the New Zealand producer was receiving only 7s ld. The Minister of Industries and Commerce, contradicting the leader of the Opposition, had replied that the arratigement he made with the Australian Government was to pay 9s ld per bushel f.o.b. world parity for -this year and a ceiling price of 5s 9d a bushel for the next four or five years. mr. .scuny, Minister oi commerce m the Australian Government, was asked on August 20 in the Federal Parliament whether he had made an arrangement with the New Zealand Government for the sale of Australian wheat out of either the last crop or future ctops, at 5s 9d a bushel f.o.b., and Mr. Scully had replied that 4,500,000 bushels of wheat had been sold to New Zealand at the rate of 9s 6d a bushel bulk f.o.b., and 9s lld in bags f.o.b., for this year, . and that no contract had been made with New Zealand for future years. On these facts, the statement added, it appeared the Government preferred to use the taxpayers ' money to pay a landed cost of 11s to 11s 6d a bushel 'for 4,5O0;OOO' bushels of Australian wheat rather than pay the New Zealand wheat grower more than 7s ld a bushel. The increase in the wheat subsidy of £954,000 announced by Mr. Nhsh in the Budgef, was the amount of the taxpayersJl money recmired to pay the difference' between the New Zealand price of 7s ld a bixshel and th'e landed cost price of 11s 6d a bushel to be paid for 4,500,000 bushels of Australian wheat. The Federation states that economic stabilisation is being carried to farcical extremes when the Government deLiberately wastes £950,000 of the taxpayers' money. Wheat conld have been grown in New Zealand at a much lower cost to the taxpayer.