WHEAT & FLOUR

Dominion, Volume 8, Issue 2286, 21 October 1914, Page 3

WHEAT & FLOUR

SHORTAGE IN SUPPLY CERTAIN

PRICES RAISED

A NEW PROCLAMATION ISSUED An statement was mitfle in tho House of Representatives yesterday afternoon by tho Prime Minister regarding the supply of wheat and flour in New Zoaland. Ho announced that henceforward the maximum price to bo charged for milling wheat would be 6a. 3d. per bushef, the price fixed by a' former proclamation being 4s. 9d., and for flour £13 instead or £11 15s. As one of tho reasons for tliis increased price, Mr. Massey informed tho Houso that it was now certain that there was uot sufficient wheat in. New Zealand to supply the. population until next harvest, The higner prioes wero fixed by proclamation published in a Gazette Extraordinary last night. The Position Explained. The Prime Minister, after explaining what tad been done to date said that before the Australian prohibition was announced he had taken the opportunity of purchasing a quantity of wheat in Australia. He had not been able to get anything like the quantity ho wanted, but he had succeeded in getting 46,000 bushels, moat of winch 1 was now in New Zealand. Since then he had ascertained beyond question that there was going to be a shortage in New Zealand before next harvest. He was sorry, to have to. say so, but it was proved beyond any doubt. How great tho shortage would be it was impossible to say, bub undoubtedly there would be a shortage. It was impossible to discover the extent of the shortage, because of the number of 'hands in which the wheat was held. Ho believed the supplies now held by farmers were very , small indeed, but there were hold by merchants and storekeepers in different parts of the Dominion. That was the position with ■jvbich tho Government was faced. He had again communicated with The Government of Australia to ask them to let the New Zealand Government havo a quarter of a million bushels on the understanding that if Australia could •not do without the whoat altogether, it would be returned to tliom after next harvest. The reason for this sug- , gestion was that in Australia there was ■ more than enough wheat for present requirements, but that on account of the drought, it was anticipated that the orops in , the Commonwealth would be poor. He had not yet received a reply to' his request, and he presumed that it was under the consideration of tho Commonwealth' Government. He had also been in communication with Canada and America, 'and he had obtained quotations for the supply of flour; If it became necossary to import breadstnffs, h-j- would much prefer to import wheat, because ho could then keep the mills running. If the milk were stopped a certain number of people would bo thrown out of employment. Mr. Myers: Have you disposed of the wheat you have purchased yet? Mr. Massey: No. Some .of it has gone, but only a small quantity. AVe uavo asked thoso millers in need of whoat to apply to the Government, and up to_ midday to-day I havo had x 2l applications from millers, some of whose mills are idle, while others say that thoir mills will be idle in a. day or two. [_ have received applications for, about six times tho amount. I have. He added that the wlipat would be distributed among those who most urgently required it. . The Certain Shortags. Regarding the supplies of wheat in New Zoaland, ho had ascertained that there was not a farmer in the North Island who had any wheat 1 on hand. There wore some farmers in the South Island who still held -wheat, and this would in the ordinary course of things be threshed in a few weeks. ITie grain would be available between now and Christmas. To show the position as it now existed, ho would inform the Houso. that fowl-wheat was selling that day at 6s. a bushel in Wellington; • last week fowl-wheat had been sold at auction in Auckland at ss. 9d. a bushel.: Mr. M'Combs: What is the Governx ment doing to control that state of things? . Mr. Massey.: If the Government attempts to control the sale of fowl-wheat it is attempting the' impossible. He had, ho continued, called the commission together again ■ to • consider the question, and they had reported to His Lxcellency. They had also forwarded to him an official communication. Their report was to the effect that the commission were unanimous that' the price fixed for flour was too low, but as to what prioe should be fixed they wero Bo divided in thoir opinions that they 'could' not make _a recommendation. That was tho position the Government svere 'in. A very serious deadlock had arisen in regard to the prices of wheat and flour, and at tho same time they tvero face to face with a certain shortago. The Government lmd come to a decision that tho proper courso for them to follow was to revert to the prices fixed by tho.commission in tho first instance, ss. 3d. par bu&hed for wheat, and £13 per ton ,for flour. -This price for flour would be subject to the usual trade discounts. This, lie hoped, would remove the deadlock, and enable the small mills; to obtain supplies for some time. -Probably they .Mvould not need to alter tho price again until the now crop came in. Thoy also had decided that, the duty on wheat from Australia should be remitted.' Mr. Davey: Why was tHat not done before? Mr. Massey: What was tho good of it? I don't think it is of much use now, except by way of .encouragement. The Government, however, will import wheat'if they can get it at a reasonable prico, and if not wheat, then flour. We do not intend to wait until, we find that eupplies are absolutely exhausted. Ho was glad to he a bio to say that the farmers had taken tho ■ advice he gave earlier in tho sossion in regard to increasing the area sown in wheat. In South- Canterbury and in parts of the North Island some thousands of acres extra had been sown, but much more required to bo done. The trouble was .that the producers must get a fair re-' turn, and thoro were other branches of agriculture that paid better at the present time. Opposition Comments. Mr. Wilford (in tho absence of Sir Joseph Ward and Mr. Eussell) said the Opposition felt the Prime Minister would do what ho .could to remedy the serious position ,that had arisen. The responsibility of meeting whatever arose must fall on the Government of the day, becauso 'they had machinery and avenues for inquiry that wero not open to members of the Opposition. Ho thought tho Commission should sit more frequently. Mr. Massoy: Thoy will sit at any time [ request them. Mr. Wilford: There aro other things that should bo inquired into. In answer to a question by Mr. Buddo, tho Prime Minister said that as tho, rosult of inquiries being made by tho Agricultural Department and the' Department of Industries. and Commerce, ho' hoped to get a more, accurate estimate within a week of tho amount of wlieat and (lour in New Zealand. Tho Dominion required 12,000 tons of flour or tho equivalent amount of wheat to carry on till next season. Mr. Wilford said thoro had been a great deal of discontent about tho Commission. < ■ WW®

that, but thoy had a vory difficult task and liad done their host. The position here was not analogous to the position in Australia. There thoy could fix a Pi'ieo, and there was an end of it, because thoy had the wheat. Here we had not the wheat. Ho was endeavouring to get wheat from Australia, and was also obtaining quotations from tho United States and Canada. In answer to a question by Mr;" Myers, Mr. Massey said there would bo a surplus of _ 150,000,000 bushels of wheat in America, and a shortage of 300,000,000 bushels in Europe, Mr. G. "Witty asked how it waß that the Government had utterly failed t-o meet tho position about wheat and flour m New Zealand? llow it was that tho Government had failed, to take off the duty on wheat and flour when kney ought to have done it ? \\ hat millers were to have tho wlieat k U"ht in Australia to supply tlie people ot New Zealand? Waa it to go to tfle millers' ring, or to the millers outside u nls° wished to ask why the Government had not issued a proclamation demanding to know from everyone holding wlieat what wheat he hold, in order that the' Government might know exactly how much wheat there ? New Zealand? He asked, also, whether the Government, seeing that tho Commissioners had failed to come to an agreement, , would themselves grapple with the whole question P ? Mr. Massey said that however serious the question might bo, the member for Eiccarton wished to make party capiri ° U k ® 10 honourable member did not care two pins whether the people of the country were starving. Cries of "No," and general dissentfrom the Opposition benches. Mr. Massey: I absolutely believe it to bo the case. ,r^. r - Witty objected to the Prime Minister's charge against him, but Mr. (speaker did not declare the words out of order. Mr. Massey: I absolutely believe that the honourable gentleman cares for nothing so much as to make party capital in his own little way .against tne Government. ... The honourable gentleman asks how it is we have not grappled with the position. Sir, I say we have grappled with the position, ana we have done so very successfully. Tho honourable member asked why didin't the Government grapple with the question instead of appointing a commission. But other countries had appointed, commissions, and had accepted tho reports of their commissions. The New Zealand Government had in fact grappled with the position successfully. Mr. Atmore: Don't joke about a serious matter. Mr. Mas soy: It is amusing to eee the onvy of tho honourable gentlemen opposite when we show .that wo have risen to tho occasion. . . . There has never been a Government in the BritisE Dominions that has had so many difficulties as we have had to deal with'. . . I havo explained the position. I have said that 60 far as I am able to ascertain between now and the middle of February there will bo a shortage of approximately 12,000 tons of flour. If private individuals will import that flour then the Government will remit the duty on it. If thoy won't do it, the Government will import it. ' .Mr. M'Combs: Why is it that before tile war millers wore selling flour for forward delivery at £10 10s. per ton? Mr. Massey: If there had been no war the position in Now Zealand would havo been exactly the 6ame as it is to-day. Mr. Hanan: No, No.Mr. Massey : Tho honourable gentleman says "No," but what does he know about it? The honourable member for Biccarton had asked what millerß wero to be supplied with ,the imported wheat. The millers'to be with whoat would be those who needed it most. Ho (Mr. Massey) know nothing about whether - applicants were ■ members of the "ring" or not.