DISTRIBUTORS LTD.

Hawke's Bay Tribune, Volume XVII, Issue 57, 18 February 1927, Page 7

DISTRIBUTORS LTD.

MINISTER ISSUES A WARNING. NOT SATISFIED WITH MILLER’S ACTIONS. Wellington, Feb. 17. A request that the Government should increase the dumping duty on Hour or alternatively impose an' embargo upon importations, or set up a commission to inquire into the whole question of wheat growing and milling, made to tins Prime Minister, Minister of Customs and Minister of Agriculture to-day by a Canterbury deputation claiming to represent all interested parties, is to be considered by the Cabinet, The spokesman, Mr. W. Machin, said that the deputation came as a result of the most united conference of farmers, millers and merchants that had ever been held in Canterbury. They were concerned with the steady decrease in the price of wheat caused by the menace of large Australian importations.

The Minister of Customs (the Hon. W. Downie Stewart) reviewed the policy of the Government as adopted in Mr. Massey’s time, and said they wished to interfere as little as possible. It was imperative that the Government should art with the utmost discretion and fairness in the matter of dumping duties. If the Government abused its powers there was no question but that retaliation would come Mr. Stewart said he quite believed the Canterbury farmers did not regard him as their friend, and remarks he had made previously on the subject had been so distorted and misused in the Christcliureh press and bv individuals that he had a grave complaint to make against their unfair criticism. It would have been unjustifiable, he said to have imposed dumping duties while there was a shortage of flour in New Zealand, tie suggested to the deputation that they should inquire more closely into tho actions of Distributors, Ltd. He was not at all satisfied that the millers were actin i.. the best interests jf the farmers. Ha had evidence which showed that at the very time when they were professing to assist the farmers, their agents in the North Island were doing their best to reduce the price, so that they might assume sole control. “1 think the utmost caution should b? exercised,’’ said the Minister, “in watching the actions of the millers.” NOT IN FAVOUR OF EMBARGO. Continuing, Mr. Slewart said the question of increasing duties on flout had been considered in view of the grave danger to farmers under the tariff treaty with Australia. However, six months' notice must be given of any alteration. It was not feasible, therefore, to make an immediate in crease, nor. did he think it advisableto place an embargo upon importa tions, because that would be the same thing as imposing a prohibitive duty which was a breach of the spirit, it not the letter, of the, treaty. He dll not wish to prejudice any other action the Cabinet might like to take. He could not see any way in which immediate assistance could be given to the farmers other than bv giving a subsidy on the price of wheat, which opened up a very big and very difficult question. It seemed clear nn duty would satisfy the Canterbury growers short of an embargo. The Customs Department had done its best.

NEED FOR INQUIRY.

Referring again to Distributors, Ltd. Mr. Stewart said he believed there was a great need for an inquiry ns to their attitude toward the farmers and the price of flour and as to their general operations. All the evidence he had showed that a great many things were being done in the direction of their obtaining a monopoly of control that required investigation. The Minister of Agriculture (the Hon. 0. J. Hawken) said he was not certain that if there was an embargo on flour there would be any difference in the price of whffiit. There Was only one conclusion to be formed from the comparison of figures for this year and last year, and that Was that the bigger wheat crop had resulted in a lower offer by the millers. The millers were in a very strong position as far as the farmer was concerned. Tn a subsequent discussion Mr. Coates said: “I will put the matter before the Cabinet in order that the statements made to-day may be considered and a decision arrived at. Wo will inquire first as to temporary methods and then as to whether a commission is necessary. Personally. I am not a bit keen on commissions. ’