WHEAT AND FLOUR DUTIES.

Rangitikei Advocate and Manawatu Argus, Volume XXII, Issue 8964, 5 November 1907, Page 4

WHEAT AND FLOUR DUTIES.

Per Press Association. Auckland, November -1. The probable effect of tlio Bill introduced by the Government with a view to prevent excessive prices being charged for various articles of daily use was discussed by;a reporter with the representatives of leading business firms to-day. “Australia can always produce wheat and flour cheaper than New Zealand,” said Mr P. Virtue, manager of the Northern Roller Flour Mills, “owing to land, labour, and railage being much lower, and higher price ruling for the byproducts of flour —i.6i, bran and sharps. The Commonwealth was seriously considering the urgent need of offering a bonus to encourage the exportation of flour, to open up its immense areas. In New South Wales alone there was 30,000,000 acres waiting for the light plough to scarify the laud, which can be had for from £3 to £3 per acre, with low railage, etc., with which the New Zealand wheat grower would never bo able to compote. The Australian esporr. price of flour was always from 10s to los per ton below its local price, assisted by the high price always ruling tor bran and.sharps, and jithe proposed bonus on flour, how would the average price be arrived at to guide our Court? It was the thin end of the wedge, and would soon be J applied to ."all industries, such as Shoots, clothing, etc., because the farmer and his labourer would demand it, and why shouldn’t they?” “I notice j-t’ said Mr Virtue, “that bread is omitted, and why?” “The Bill,” said Mr Gunson, “is the result of the long and agitation against the inevitable increased cost of all foodstuffs. Potatoes duiug 1906 were at an abnormally high price, owing to what might be called the absolute failure of the crops throughout the Dominion. This was due to the disastrous effects which followed the blight then so prevalent. Our supplies were drawn from Tasmania, where, owing to the very light crops lust year, prices were high throughout the season. It was, then, smply a question of supply and demand, and any proposals along the lines now ; indicated would not in any way affect values, nor could any steps taken under’the proposed Bil Fin any way lower the costs. The merchants must base their calculatous at all times on the costs, and if these are high such prices must necessarily bo passed on to the consumer. During the present season of 1907, potatoes, until the present time, have been standing at what might be termed a comparatively low figure. From March to September the average price would not exceed £5 per ton. During the last few weeks, owing to the continued dry weather in Australia, prices have advanced very much, and as our stocks in the Dominion are extremely light—barely sufficient to carry us to the end of the year, when the new potatoes will be available, our prices have advanced right up to the level of the cost of importations. Taking tl»e price of potatoes over a series of years, the ups and downs of the market have been accounted for entirely by supply and demand, and in no way (as indicated above)would the provisions of the present Bill have affected the values. Owing to the wide sources of supply and trade, competition being so keen, it is unlikely at any time that potatoes could bo held and cornered, particularly as they are such a parishablc article. As far as wheat is concerned, the present condition is brought about entirely by what might be called a world famine in this cereal. Much if not all the present agitation rises out of the fact that the position is not fully realised.