IMPORT DUTY ON FLOUR

Dominion, Volume 7, Issue 2244, 2 September 1914, Page 6

IMPORT DUTY ON FLOUR

PROPOSAL TO SUSPEND IT

DEPUTATION TO PRIME MINISTER

The removal of the-import duty of £i per ton on Australian ilour coming into New. Zealand for a period of throe or.six months was urged by a deputation of about 30 members of Parliament who waited upon the Prime Minister yesterday. , Mr. T. H; Davey said that tho rising prices of foodstuffs in New Zealand was a serious menace to the poorer people of .the Dominion. Since March 6 the price of iiour in Christchuich had increased by from £2 ss. to £2 15s per ton, with the result that bakers had been compelled to raise tho price of tho 41b. loaf by a halfpenny. The pneo of flour now was'between £12 10s. and £13 per ton in Canterbury and Otago. He was not willing, nor were any of the members of the deputation willing, to injure the primary producers, but he did not think the removal of the duty on flour for a few months would do this. At present it appeared that the raising of the price of flour was due to the machinations of middlemen, and this they did conaemn. To charge more for food, at finis timo than was absolutely necessary was 'little less than a crime. The removal of tho duty on flour for three months or six months would not affect the price of next year's wheat crop, and would not prejudicially affect the primary producer. Tho wheat imported in the March quarter of this year had been worth £18,617, cr almost equal to the usual importations for a whole He urged that it was the duty of the Government to find out who was putting up the price of wheat and put a stop to it. " Sir Walter Buchanan asked Mr. Davey whether assuming that there' was no wheat to spare to fast until next harvest, was saved, would not the extra' quantity of wheat required for seed have an influence in increasing the price? Mr. Davey: I should say it would. Sir Walter Buchanan: I have always been m favour of abolishing the duty, but supposing it is abolished .now for three months or any other pqribdj will' that havo the effect of checking thei sowing of wheat that would be put into ' tho ground to ensure plenty for next year? ' •. ; Mr. Davey said that he did not think the removal of the duty would have this effect.. ... . i . Sir Walter Buchanan: : These two points are at least worth considera- ' tion. . Sir Joseph Ward said the Opposition would support any proposal the Government might bring down'to ctteTpen the price ot bread to the people. Tie was not sure that to take the duty off would be a sufficient safeguard against the exploiting of the commun- . lty. He .would support the abolition of the duty if he could be assured that millers would not simply add foe amount of the duty to their profit.

. JIB,. MASSEY IN REPLY. / The Prime Minister said he was gst9 to notice that although there was some difference of opinion, the members of ■ the deputation recognised that the proposal was a very important and serious ono that, required consideration from several points of view. He reminded members that the export of wheat and flour had been prohibited because the Government considered that the existing stocks were scarcely sufficient for the requirements of the. country until next' harvest, especially if the' harvest should be late.' Mr. feassey. t s*id he had »seen' for some time that there would he a shortage, and believed that. even if there _had not been'waj; prices would have risen, though perhap"s not to quickly '- as they'had done. The' prices were regulated by' production. ; If the production exceeded the requirements of the Dominion, the price of Wheat in New ' Zealand' was the price ' in England, less" freight, profit, and other charges. If, on the other hand,' the production was inadequate, the ■■ price became the price in Australia, ■' plus i the coat of bringing Australian Wheat into the Dominion. (Members: Hear, hear.) App3al to Craln-growers. Mr. Massey said he had been endea« vouring, not only since the outbreak of war, to encourage the growing, of larger quantities of wheat, and he was glad to acknowledge that the response to his appeal had heen so general ffiafi the supplies of seed for spring sowing had been exhausted. Suggestion had been made that if the duty was removed' from wheat, Australia should recjprocate by removing the duty from some commodity produced in Now Zealand which the Commonwealth, required. Mr. Massey suggested that perhaps oats ; .. might be made the subject of such a reciprocal agreement. Another point ' was that even in ordinary seasons. » certain amount of Australian wheat was. required by millers to be mixed with, the New Zealand, wheat owing to .the excessive moisture of-the latter. He had' received a' communication from i employees in several mills suggesting that the free admission of flour might deprive them of their employment. .... Mr. Witty: Take the duty off wheat only. ■ - An Anomaly. •, v * Mr.Massoy: That suggests aitothoi' interesting point. Is the price of flour in proportion to the price of ' wheat? Wo are all of one opinion that anything in the way of exploitation, should be prevented, and the Government will do everything it possibly can to • prevent Mr. Davey: If the duty were taken off, it would reduce the price of flour in New Zealand, so that it would not pay to import flour. ' , Mr. Massey said he had been advised that morning by a cable, message from Sydney that the price of wheat was 45.. 9d. per bushel, on rail, which suggested tliat the price was dearer m bydney, bo that there was tho curious position that While wheat was as dear in Sydney as in New Zealand, if not dearer, flour in Sydnoy was cheaper by £2 ss. per ton. An immediate consequence of a permanent removal of tho duty would be that the production of wheat in the Dominion wciild fall below requirements and tne price would rise. -That was not suggested, but having asked the farmers to grow more wheat, could ho now turn round and ask Parliament to remove the duty ? Food . Prices Commission. ' _ ' Regarding the Food Prices Commisj. sion Mr. Massey said ho had arranged that Mr. Justice Stringer should' be immediately relieved of his Supreme Court duties and had telegraphed asking liim when the Commission could begin its work. "I think the proper, thing to do." said Mr. Massey, "is';-to, submit to the Commission tho questionwhether the prices of wheat and flour, have gone up unduly, and whether the price of flour is in proportion to the price of wheat. If they report to the Government that the people are being exploited then the Government will take action. Wo aro not going to nut up with exploitation. Tho proper thing is not to do anything hurriedly' or hastily--and perhaps make a mistake, but to. submit the position to the-Commission, get its report, and then, if it'is necessary, I shall ask Parliament to legislate." .A statement was made in the House of Representatives by tho Prime Minister last evening that ho had convened the members of the coriimission to. meet in Wellington on Thursday morning. He had received a telegram from the • Chairman of the Commission, Mr. Justice Stringer, that he would leave Auckland to-day, and nrnvo in Wellington the following • morning.'