DEMOCRATS AND GRAIN

Evening Post, Volume CXVIII, Issue 89, 12 October 1934, Page 8

DEMOCRATS AND GRAIN

(To the Editor.) Sir, —I notice that one of the planks of the new Democrat Party is the "abolition of the duties on wheat and other grains, thereby reducing the cost of bread and encouraging the production of poultry and pigs." So far there is only one parent to this unwanted political babe. Apparently the other parent is shy about coming into the limelight, and all the publicity.is being borne by Mr. Davy. However, the policy in regard to wheat and the inaccuracy in regard to pigs confirm a strong opinion that the origin of the "democrats'' is% a small coterie of dairy politicians in the North Island. Their policy on wh^at and pig feed shows that they are not looking for South Island support. Actually in regard to the latter the author or authors of the policy apparently do not'know what the law or tariff is. In regard to the "cheaper-bread" cry, the price of the quartern (31b) loaf in London in August was raised from 7Ad to Bd, as against our average of 5d for the 21b loaf, so our loaf is cheaper. In Sydney the price of the 21b loaf is s'Jd. In most of the American and Canadian cities it is Cd and more—so that should end the "cheap-bread" fallacy.

The Home Government has been flooded with imported eggs, largely from Australia, which is in a unique position to raise eggs. As a result of the excess supplies the British Government has imposed a restriction of 5 per cent, on all foreign eggs going into the country to operate from December 31. Yet some of these people in New Zealand imagine that wo can pay the freight on Australian wheat to New Zealand and compete with that country in a market which is going to be restricted. Such a visionary possibility would be a '"poor compensation for the ruination of one of our basic primary industries, although it is only a "section" on which 20,000 workers, 7000 farmers,,and £12,000,000 capital are employed. The egg would need to be a double-yoked one.

Tho value of "the limited New Zealand export at present is that it removes a small surplus to enable the local price to be kept up to a reasonable level. A heavy export of eggs would defeat that policy and cripple the present rgg producers. Tho talk about removing the duty on "other grains" and pig production is obviously to make the unknowing believe that pig feed is paying a - tariff duty. Nobody feeds pigs on wheat

unless it is so cheap that M is at a give-away price—and then only in small doses. TJio reason is that pollard and bran—the real pig feeds — have to bo proportionately cheaper than the wheat, and both of these essential pig feeds have been free of duty for more than four years. Of the "other grains"' feeding barley is free, and it would be dear bacon if fed on malting barley. Strangely enough, four-fifths of the bran and pollard used in the pig industry is produced in New Zealand, and at a cheaper price than the imported Australian, and it can be claimed that this cheap price of New Zealand wheat offals is responsible for the increase in tho Dominion's export of pork and- bacon by over 300 per cent, in the last three years.—l am, etc.,

I. A. ROUND.