N.Z. FLOURMILLERS
ASK PROTECTION FOR WHEAT INDUSTRY THE AUSTRALIAN POOL ' The Flourmillors’ Committee of New Zealand has circulated am.ong members of Parliament a pamphlet advocating a protective tariff for tho wheat-growing industry. "We ask,” tlw flourmillers state, "that a duty of Is. 6d. per cental bo placed on imported wheat, and a duty of .£2 10s. per ton levied on all products of wheat; and further, that power bo given to tho Government to prevent dumping. "We are well aware,” they proceed, "that the importation of wheat and flour into New Zealand is at present prohibited by Order-in-Council, and that the Government has the power to issue an Order-in-Council imposing a duty oi <£2 10s. per ton. on any flour that may be permitted to enter New Zealand. But these methods of protecting the wheat and flour industries are of a temporary nature, and may be repealed at any time. expedients cannot from their very nature provide an assurance of permanent protection against possible destruction through undue and unfair competition. Without such an assurance the growing of wheat will not be permanently re-established' on an adequate basis, but will be liable to fluctuations and to relapse into inadequacy. We have, we take leave to say, shown that wheat-growing and. the manufacture of flour are industries of such importance to this country that they should be permanently protected by including wheat and wheat products in the new tariff.
Permanence of Inducement. "Permanence of inducement is essential to sustained wheat production. Doubt and uncertainty are deterrent factors. In order that New Zealand farmers may include wheat growing in their rotation of crops, they must know at least twelve months ahead of actual sowing what they are to receive by way of assured protection; if they are to adopt wheat growing as a permanent part of their operations they must know that the policy of the State has statutory expression. In the past many farmers dropped out of wheat growing owing to uncertainty of the Government’s policy over a term, of years. '. "ilt may be that some critics will point to the largo area sown with wheat this year, and use it as an argument against the proposal for increased protection. But that larger sowing is. the result of abnormal conditions. It is the natural result of the sudden and severe drop in the prices of wool and meat, which has mado grazing unprofitable in the meantime, causing farmers to tn r n their land to other uses. But tho fall in tho values of wool and meat cannot be expected to remain permanent, and a recovery will lead to a. reversion to grazing, which entails less trouble and outlay, and is attended by fewer risks. Such a reversion would be detrimental to the best interests of tho Dominion for th" reason" already set fort). Ue urge that by placing wheat, and. wheat products on the new tariff list with tho duties we ask for tenners would have definite protection over a term of years, and wo predict that wheat growing would bo placed on a permanent basis, and produce regularly a sufficient quantity to meet the Dominion’s requirements. "Other countries are'protecting thrir wheat-growing r 'nstrios. Australia, which is a wheat-exporting country, has an import duty of Is. 6d. per cental on wheat and of .£2 10s. per ten o n flour. Tho United States quite recently decided to protect its wheat growers arainst importations, and President Harding is reported to have 'urged that tho immediate enactment of an emergency tariff, declaring that the American agricultural interests wore menaced.’ He is also reported to have said that 'this tariff should bo followed by a more mature measure, tho revision to bo based on a policy of protection, which would prevent selfishness.’ Pool Methods in Australia. ' "During the last few years now con' d’itions in the marketing of wheat have come into existence; such, for example, as tho Australian wheat pool. . That pool has very wide powers, which it has used in ways that, if continued after tho New Zealand Government drops its present system of protecting wheat growers, may seriously affect tho Dominion’s industry. To particularise, in 1918 the Australian pool quoted Australian millers wheat for manufacture into flour for shipment to New Zealand at a penny per bushel lower than its quotation for wheat to Now Zealand millers. That was not an isolated instance, but was in accordance with tho policv of the pool throughout the year, the object being to manufacture as much flour in Australia ns possible, in order to make available an increased! quantity of bran and pollard. Another instance may bo given. When the Now Zealand; Government in February of this year inquired for wheat from the pool it found that it could only secure wheat provided it took a. fair proportion of flour made from old wheat. That example should act as a warning to guard against reliance upon outsid'o sources for supplies of breadstuffs. It emphasises the propriety of encouraging tho producing of enough wheat to meet all our requirements.
"It is practically certain that this pool will bo continued, os the Australian farmers are advocating a. compulsory wheat pool for next year. Australia requires a very largo quantity of bran and pollard, and this can only be secured by manufacturing flour for export in Australia. The wheat pool solves the difficulty, but it. creates a serious danger to the Now Zealand industry.
"Setting aside the requirements for poultry feeding, which is an important consideration, the average consumption of wheat in tho form , of flour in Now Zealand is fi.SOO.ffOO bushels, and that consumption increases from year to year with tho growth of population. The values of flour, bran and pollard this year are approximately:— 125,000 tons of flour =£2,750.00(1 60,090 tons of bran, and pollard 435,000 Total T3.185,00(1
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Dominion, Volume 15, Issue 26, 25 October 1921, Page 7
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973N.Z. FLOURMILLERS Dominion, Volume 15, Issue 26, 25 October 1921, Page 7
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