PRICE OF FLOUR

Dominion, Volume 10, Issue 2951, 11 December 1916, Page 7

PRICE OF FLOUR

THE REMISSION OF DUTY

MILLERS' PROTESTS

i Flourmillers are. protesting against the action of the Government in remitting the duty on flo'ur. They state that they are being forced to meet the competition of cheap Australian flour, duty free, without beine; allowed to Secure supplios of cheap Australian Svheat on the same terms. They urgo '(that the prices they have paid for New Zealand wheat will not allow them to .sell flour at £13 15s. a ton, the prico lafc which Australian flour can be placed i&n Wellington, and that tho remission jor the duty on flour, without the re.mission of tho.duty on wheat, is unfair •to them. "It is the wheat that should have been admitted free," said one miller on. Saturday. "The wheat is the raw product, .and with the oheaper 'Australian wheat to mis with the Now ■Zealand wheat, millers could bringdown the price of flour. The action of tho Government in remitting the duty on flour will havo the effect of closing New Zealand mills." '

, It was pointed out in another quarter that tho New Zealand millers. had not bought all their wheat at present prices. Wheat statistics showed that of the 1,500,000 bushels of grain in tho Dominion at the end of Novomber, all tut 250,000 had passed out of the hands of the farmers beforo the price advanced -beyond ss. a bushel. It appeared, therefore, that the millers and merchants had bought most of their wheat at a comparatively low price, although the flour prices were being based on the present high prices of wheat. The Minister of Agriculture, in announcing the remission of the duty on flour, stated that. this measure was part of a general scheme. The noxt step is to be a; conference of wheatgrowers, but a date has not yet been fixed. If a representative meeting of growers can be secured in Wellington on Thursday next, the conference will be held .then. Otherwise it may bo postponed uutilthe beginning of January. The Minister wishes' to discuss with the growers a scheme for the encouragement of the growing of wheat in New Zealand during the war period, and for one year-after .the conclusion of peace.. He is awaiting replies from the various districts. SOUTHERN MILLERS. THE POSITION OF THE GROWER. Uhristchurch millers stated on Saturday that at the present price of wheat in New Zealand they wero quite unable to compete with Australian flour, as the imported article could be placed in Wellington at £13 15s. per ton; .To mill flour at this price, they would havo to purchase wheat at about ss. per bushel, or moro than Is. below the present figure. | ''Some months ago the millers saw the present position approaching, and advised the Government of their fears," said one miller. "They suggested that the wheat : should be taken over at a fixed price—a price that would assure the grower' a fair margin of profit and to the public a reasonably cheap loaf. It is a mistaken idea to 'suppose that miller? gain anything from tho rising price of flour. Flour prices have to bo regulated in sympathy with whoat prices, and so far .flour has hot risen at a proportionate rate." At the end of November they had-been asked to supply returns of wheat in their stores. They felt -that if these estimates ha/d been forthcoming a'littlo quicker they would have been valuable at this juricture, both to those interested in milling the wheat-and to those who produce it. The Government statistics compiled were'felt to be' unreliable, and many were stilh-of the opinion that there was not much wheat lield in the Dominion.

Mr. R. Allan, in commenting on the position, said that at the hack of every farmer's mind there was. tho foeling that possibly in sowing wheat ho niight at some time or' other strike high prices. Unless he has that inducement, ?aid Mr. Allan, he will not grow whdat.