THE WHEAT DECISION.

Hokitika Guardian, 25 February 1926, Page 4

THE WHEAT DECISION.

DUTY TO STAND. TLMAIU", Feb. 23. To a local miller the Hon. Air Hawken, Minister for Atgrieulture, telegraphed to-day ‘‘Replying to your telegram enquiring if tiie retention of duty will hold uliti 1 the 1020-27 wheat crop becomes available, such is the intention of the 1 foveriinient.” MILLERS’ COMPLAINT. IPA LAI ERSTON X.. Feb. 23. AYliat will be the real effect of the Government’s wheat and Hour scheme ? To this question. 11 well-known North Island miller to-day replied as follows: •‘The Australian flour-miller will lie delighted. since he will capture most of the trade, while oil 11 10 other hand all the various New Zealand interest will suffer. The dairy and poultry industries will have to pay increased prices for pollard and bran, since it will be sold oil the Australian purify. But more serious than that is the jeopardising of the offal supply itself, since New Zealand will receive only whatever quantity Australia can spare. Ihe southern wheat-grower will also suffer as his price for wheat is depressed b\ unprotected and unrestricted importations of Australian flour. Consequently he must accept, a correspondingly lowprice. Only when it. gets down to that level can the New Zealand miller buy. Meantime be liiusL close down bis mill and pay off his hands. ■‘The apparent concession to Nona Island poultry men! is illusory, for he will immediately pay a. higher price lor his bran and pollard, and buying from Australia, duty free may not cheapen bis wheal cost, for be should biter be able to buy even cheaper from I,ho Soufli Island, where wheat prices must inevitably come down. ‘Further. Air Hnwkeu’s avowed police of stimulating wheat-growing defeats itself by depressing wheat values, and consequently discouraging wheat-growing. The heart ol the prob-

lem lie- here—that Australian Hour is now re"'nlarlv landing in Now Zealand costing about £ ID. North. Island ports. That obviously lixes the selling price of New- Zealand Hour. which means, in the form of wheat, say (is od 1'.0.b. South Island. Yet that central fact, is the one Mr Haw-ken ignores. Instead, he implies in his cleverly worded statement, that the wheatgrowers will get a high price. In a word Ihe weak link in Mr liawkcii’s scheme' assumes that the Nwe Zealand Hour-miller is a blithering idiot, who. although lie can only gel some (is nil 1'.0.b. for bis wheat, will submit to inlying 7s or even higher prices to the farmer. It' lie instead chooses the loss of two evils, and closes bis mill, tne result will be stalemate'—the larmer awaiting the anticipated high price, and the miller waiting for the price to drop to enable him to grisi to profit. Meantime the Australian miller does our tlmir business and offal supplies. Both are at the mercy of Australia.” WELLINGTON VIEWS. WELLINGTON. Feb. 23. ’fhe -‘New Zealand Times’’ applauds Hie Government's decision, and adds: “The suggestion is tlicit growers will receive full market price lor their wheat, and that a rise in the cost of bread to then consumers is unlikely, though the •unlikely’ in the Minister’s statement bespeaks an element ol doubt. The inference left is. however, a hopeful one. The millers may proles;. but if wheat-growing is popularised. the position will gradually right itself. It is so essential that. New Zealand should produce wheat for its own needs, and ii is dangerous to bo dependent upon overseas supplies. Ibe farmer is entitled to the lull market parity for bis grain. The •■Evening Rost” admits that the problem was a knotty one. but the Alin-i-ter's solution leave". llu* consumer much as he was bolero, with the possibility ol having t > pay more for bis

bread. ‘‘l I i- now for the m ilbo’s. and after them the bakers, to say whether we shall have to pay more for our bread. Four million bushels ol wheat will have to be imported, and the duty paid on it, less the quantity for feeding liens,” 'flic •‘Fust” admits that it is increasingly dangerous to lie dependent upon overseas supplies, and it is also 1 nereasiugly 1 ostly as the consumer may discover. Several Wellingte.n grain merchants.

e-ked f;w tluii otiincnt- on the ! ; o\ eminent *s filial w heat decision, expi'cs.. ed satisfaction, though there were ijil.il ient ions.

One auiiiorilv remarked: "It takes from on,* poekei and put- in the other. The farmer will be satisfied heeause the Gijveniineui is not going to interfere with the duty, hut at the same line’ ill’s North, island market is gone if the North gets its wheat duty tree at world parity. The southern miller will get wheat at a reasonable priie and ! fnrsoe southern millers, when the i nip is exhausted, asking lor the importation, duty tree. of milling wheat. Fowl wheat i- Australia i(is (id a bushel ami could lie landed at 7- 2d sacks in. which. compared with the h.cal price of K- lid to !!.s. is a big help to the poultry industry." If ARM MRS’ FXIOX DISCUSSION. CHRISTCHURCH, Feb. 21. The North Canterbury branch of the Farmers' Union to-day discussed the Government's aimoitm e.nent on the w heat .(lies! ion. The advocates ot wheat control scarcely raised their voids against the general cln.nis ol approval ol the new policy. 'the only adverse comment was that the Government might have gone a

step further, and raised the duty on imported Hour in order to make the protection duly on wheat hilly operative. At present they dec lured, the governing factor determining the price of wheat was not the price of imported wheat plus the duty, but the price of imported Hour. It was not suggested that the growers ought to receive anything like a price equal to the cost ol landing the Australian wheat in New Zealand with the duty added, but it was admitted that the millers might have lieon given mure protection, to enable them to pay the higher prices that are likely to he ruling for locallygrown wheat. At the same time the hostile attitude of the flour miliars was criticised by the growers. It was the general opinion that the millers would not buy at much above (is !)d per bushel on the trucks although many sales were reported already to have been made at 7s per bushel. The growers did not, however, take set iouslv the suggestionmade by some ol the millers that they would close down if wheal were not obtainable at certain low prices named.