PRICE OF FLOUR

Dominion, Volume 10, Issue 2950, 9 December 1916, Page 11

PRICE OF FLOUR

DUTr TO BE REMITTED SCHEME TO ENCOURAGE WHEAT GROWING The following statement was issued yesterday from the office of the Minister of Commerce (the Hou. W. D. S. Mac Donald): — "At the instance of the president of the board, the Hon. AV. D. S. MacDonald, the board has instituted an inquiry into the recent rises in the price of flour, which appear to have been unwarranted"by conditions obtaining in the Dominion. To meet the present emergency the hoard recommends as a tompojrary measure that the duty on flour be,remitted as from to-day, December 8;' meanwhile tho board has under consideration a scheme for preventing fluctuations in prices during tho continuance of the war. and will consult with tho Board of Agriculture in tho matter of giving effect to the policy of tho Government as contained in the Appropriation Act of last session, i.e., the encouragement of the growing of sufficient wheat in Now Zealand for domestic purposes, and thereby, whilst shipping is disarranged, owing to the exigencies of the war, obviating the necessity of relying on outside sources /for our staple article of food. This can only bo done by a full and comprehensive scheme, which will be considered and reported upon immediately. Cabinet agreed to-day to the' remission of the duty on flour."

Mr. Mac Donald stated that the Board of Trade and the Board of Agriculture would meet in a few days. Telegrains'Bad been sent to representative fanners in the wheat-growing districts suggesting that a conference of farmers Bhould bo arranged to discuss the proposed scheme to encourago wheat production, and asking them to arrange a date, but it was probable that this confe'renoo would not be held until after the Christmas holidays. THE MILLERS' VIEWPOINTS. PROTEST TO THE; BOARD OF TRADE. By Telegraph—Press Association. Auckland, December 8. The following telegram has been addressed to the Board of Trade by Mr. Peter Virtue, of the Northern ' Roller Milling po.:—"If.it is true,, your'action, in removing the duty oh imported flour will place the North Island trade in the hands the Commonwealth. It is customary to remove duties off ra.w materials to keep industries alive which were built up by Protection, as on raw materials there are'always two labour handlings,, but not so on ! the imported article manufactured. If the Government wheat statistics are unreliable, as past events have and if the milling industry is not required, what' encouragement is there for farmers to grow wheat? . . .

The Commonwealth duty on flour and wheat is 60s. per ton, against the Dominion's 20s. No doubt, to Free-trad-ers, the Empire's present curse, it is of littlo moment. Evidently the Commonweath is more alert to its industrial and farmin' interests. Last session a ' Bill was' passed to prevent dumping from the Commonwealth; which waß an assurance to encourage wheat-growing, and consequently milling: How are farmers to view this, spasmodic legislation, which will always tend to creato shortages through want of confidence? AVith the Government's assurance wo purchased wheat at market rates to make * flour, and as no notice was given that.,tho flour duty would be withdrawn from a certain date; hut with the baihip policy, after promising protection, we. think we havo a legal right te rofus.o delivery of wheat purchases. Why not remove duties off hoots, clothing, etc., etc.; also the.poll tax on our Allies, instead of singling one industry, which will also rum wheat-growing, with its numerous adjuncts? Doubtless, you are aware if-there should.; W any excess profit, the Government takea_4s per cent. Is it your desire to ruin the wheat and flour industries to benefit the Commonwealth, and in the event of a- shortage there, what remedy would you suggest?"