WHEAT PRICES

Dominion, Volume 11, Issue 177, 16 April 1918, Page 8

WHEAT PRICES

JUSTIFICATION OF GUARANTEE. A statement about wheat supplies \vhs niado to tlie Jjouso of Kenresentatives last night by ttio ilou. W. D. S. JlacUoiinld. 110 said that statements were being made that good milling wheat cuuld be purcliased in Australia, for -Is. lid. a. bushel. The fact was that it could not bo bought in 1017, nor could it be bouchi in MIS. The wheat purchased in w>7 had beon good, and it hail satisfied reuiurcincuts up till the present time. 110 told or tlie measures taken by the Government to ensure tb.it enough wheat should be grown to meet the requirements ot New Zealand. The requirements wore, per year, 7,100,000 bushels. Tbu Government, bought ViUO.OOO bushels in Australia, and it had taken eleven months to get it to i\u\v Zealand. They had two special steamers; they tried flie mail boats and they tried the transports, but the freight on the transports was 3'2s. Ud. a ton. Unless special snips could be obtained .there was a tremendous loss in weight of wheat. Kven with a special eteaiuer there was considerable loss in weight. The fact was that wheat at 5s 6d. f.o.b. in Australia could not be lauded here at less than 6s. 3d. per bushel. It was not truo that New Zealand had yM more than, other countries for Australian wheat. The iarmers found whoat-jjroiv-ing unprofitable last season owing to the bad year and the lack of efficient labour at reasonable prices. The crop had been a failure. It was estimated that the yield would be 8,700.000 bushels, but it Was now estimated that the yield would bo barely 6,000,000 bushels. In addition to the food ■•e<iuirement.3, 1,000,000 bushels were required for poultry lavmers and for pig farmers, and from 300,000 to 500,000 for seed. The Government hod fixed a guaranteed price for ivlieat,but had agreed to leave the farmers a free market i'cr their wheat should it be worth more than the guaranteed price of 6s. 4d. per bushel. Tins was only tair, seeing that thu cost of labour and other services was unregulated. He considered that the guaranteed wheat price was only lair under present conditions..