SLIDING DUTY ON WHEAT

Hokitika Guardian, 28 August 1931, Page 3

SLIDING DUTY ON WHEAT

A BAKER’S VIEW. CANTERBURY CHALLENGED BY AUCKLAND. AUCKLAND, August 2(5. “There has been so much public comment from all quarters regarding the high price of bread, and a great deal of misconception regarding the true position that it seems necessary for the bakers to state the position,” said Mr Li. I’. Burton, president of the Master Bakers’ Federation of Employers. “The present scale of duties was introduced by the Reform Government, further ratified by the United Government and with a variation from February, 1923, still operates. The variation, to operate as from February next, is based on wheat prices at 4 S lid per bushel, which means that flour prices in Auckland will be round about £ls 15s per ton. Provided present prices of flour in Australia still obtain at that period, that is, Melbourne £5 10s f.o.b. a ton, and Sydney £7 10s per ton and adding freight and incidental charges, including cartage, at thi s end, it follows that it will he possible to land this flour in Auckland or Wellington factories at £7 10s per ton from Melbourne and £9 10s per ton from Sydney On this basis of calculation, it will he seen that the New Zealand consumer has to protect the wheat grower of Now Zealand to the extent of £7 to £8 per ton. The master bakers contend that the original intention of the sliding scale of cljuty was never meant to meet such wide discrepancy.

WHEAT GROWERS’ INTERESTS “We have no direct quarrel with the wheat, interests, and have always advocated some form of protective duty,; both in the interests of the glower, and also troni a national standpoint. It may he information to the public, but nevertheless, true, that, the efforts of the Wheat Research Department in Christchurch, have so far linproied the qualify of New Zealand plant, that to..ny New Zealand bread may now be regarded as second to none in the world.

“We therefore take the stand, that due to the altered conditions to-dav, and the fact that economic stress in the country is a stark reality, the Government has a duty to the country in scrapping the present sliding scale of duty, and substituting therefor a protective duty of £3 per Lon. “Surely it cannot be denied that such protection is ample in view of the public interest, and if this course is followed there will then be a reasonable chance of lower bread prices. The whole question is of great 'publie l import, for according to the statistics of the official Year Book, 1981; the amount of flour produced in New Zealand last years was 13(1,917 tons. We imported 9538 tons.

NORTH ISLAND BURDEN

“Taking the. difference.'- between Australian prices and the present price of flour in the North Island of New Zealand, and even allowing for the difference in price in the South I;land, the New Zealand consuming public have

paid; over .€1,000,000 last year to maintain the wheat industry. The actual flour consumed by the public of New Zealand is round about 1901 b of flour per head of the population. “It is quite evident that the bakers of New Zealand are being made the buttress, of the present agitation regarding bread prices, but in view of the above statement of the positii n, it is quite obvious that the wi !o Ais Tenancy in flour prices is the root of the trouble. Bakter s throughout the co n ry are faced with fixed charges ap rt horn flour costs, and these charges show practically no variation.

“Further than that, from time to time, at the instigation of the Departent of Industries and Commerce, Ihe closest investigation of bakers’ costs have been made, and in no case h s it been shown that bread prices are anything but reasonable.

TRIBUNAL SUGGESTED/.. “With regard to tills matter. we openly challenge the Canterbury interests to set up a fry competent tribunal with a view to investigation of : these prices, and if the ease goes agailict the baker we will remedy the position at once.

“The whole of the baking trade of Auckland is up in arm s at the present ridiculous position. Due to the enonomic stress which is widespread in New Zealand, the baker lias had to submit the reduction of bread prices to_ rates that approximate bankruptcy, and tfe therefore wish to assure the public tint unless some united action is taken to further meet the position now existing, there is little hope of an equitable reduction in the price of hre'-d commensurate with conditions now existing.”