WELLINGTON NEWS

Hokitika Guardian, 2 March 1928, Page 4

WELLINGTON NEWS

CUSTOMS DUTIES AND CFRKALS. iSpeeial to “ Guardian ”.y WELLINGTON. MARCH l. The Auckland Chamber of Commerce is engaged in a futile discussion with the Minister for I'inimce in respect to the duties on maize, wheat and Hour. There is an opening admission on the part 01 both parties tli.it an increase of duty generally means an increase of p; ii unless unusual local influences interfere. It is this probability Hint actuates the Auckland l lianilier ol Commerce in dealing with the subject, for the increased price of the commodities raises the cost of living. The effect of a duty is to stabilise ihe prices at a higher level than would have been the case luid there been no duty. The probability of any reduction in the cost of the, main foodstuff of the country bread is unlikely, and that being so it is difficult to see bow any steps can be taken to reduce the cost of living. In this we have the universal foodstuff of the people stabilised at the higher level through the action of the Government fixing a duty on the commodities. The Chambei'' points out that at the present fimo the opinion is held by leading authorities that we are face tn face with a period of falling prices. If this opinion proves to be correct then the stabilisation of the price of wheat at the present level will tend to make our cost of living comparatively higher than it would otherwise have been. The point made by the Chamber is that increased production ol wheat in Canterbury and Otago may be purchased at too heavy a price. The benefits of higher prices than would have prevailed without the new duties to the comparatively few farmers in Canterbury and Otago are apt to be less in aggregate than the increased price paid by the consumers. Dealing with bacon and eggs, the Auckland Chamber of Commerce points out that the effects of the duties will be the costs of these two commodities will be increased, for not only will maize hut wheat offal, also used for fattening pigs, and also a low grade of wheat known as fowl wheat) is used largely for poultry. The Government did at one time permit the importation of considerable quantities of fowl wheat free of duty, but this has been discontinued, and the poultry farmer lias to face extra cost of the duty imposed and so must the pig-raiser. The latter is in a peculiar position. Flo lias been increasing his output in the hope of developing a market abroad, and is faced with the difficulty of denl- , ing in an unprotected market in selling [ his product, and paying protected I prices for the means of raising thaL product. The duty falls hard on the pig-raiser and the- poultry fanner. As regards duty on maize, tile present scale encourages the use for fattening purposes of skim milk rather than maize products. This has put those merchants with maize crushing machinery out of business in favour of Australia and South Africa. And the Chamber of Commerce adds that it is the concern of the Government to regard tiie welfare and prosperity of the Dominion as a whole, and that it rests with tiie Government to hold the balance fairly between opposing interests, he .! that t’a mast !i:i; . rtant

into:-', st-. those of the consume: -;, are much t:o oitcn unorganised ami inarticulate. and il.e viewpoint for more highly organised, hut probably less-im-portant interests, is likely to prevail.

The .Minister for Finance in his reply says: “1 admit freely that more or less stabilising prices of wheat and flour which are expected to result from the new dut’es will, in time of falling prices i>V-'r , :l, tend to keen the price of bread *;• Ik. : 1 it might have

been otherwise. On the other hand, in time of rising prices this will have the opposite effect.” The Minister’s rply is not likely to see the terminni n of the controversy. The production poultry, eggs and pigs is a serloi *• i"itter to the farmers of Aueland d’strict, who obtain a certain proporron of income from, these s7-ui-.es. It Is httle use asking them to <rivo a fair tr' l to the new sliding s'-ale method of ndiusting conflicting interests. They are not parties iii the trouble, and are not concerned about a sliding scale. What they want is a reduction in the costs of raising pig and poultry food.