Wheat Duties Passed By House

Sun (Auckland), Volume I, Issue 176, 15 October 1927, Page 12

Wheat Duties Passed By House

DECLARATION OF POLICY GROWERS AND CONSUMER (THE SUN’S Parliamentary Reporter.) WELLINGTON, Friday. A LTHOUGH there were a few spirited protests at the decision of the Government to increase the duty on wheat, the House of Representatives did not discuss this item in the tariff schedule to the extent that was anticipated, and a few minutes apart from the Minister’s lengthy explanation, sufficed to put it through. The Minister explained that the Government’s endeavour was so to adjust the duty that the interest of both the consumer and the producer would be safeguarded. Mr. A. Harris said to put an impost upon an industry of this kind that could never carry on without assistance was not in the best interests of the country, and would react on the breadconsuming people. The Minister of Customs, the Hon. W. Downie Stewart, explained that the Government’s policy was so to encourage the production of wheat in New’ Zealand that there might be grown sufficient for our national requirements.

“Several methods of achieving this object have been tried in past years, including Government control and price-fixation, agreements between growers and millers and specific duties on wheat and wheat products,” he said. “Objections have been raised to all of these methods of assisting the wheat growing industry though the influence of unsatisfactory weather conditions has in several years led to unjustifiable comment in regard to the area sown. “The Government has therefore endeavoured to achieve the central objective of reasonably encouraging wheat production by so adjusting the duties that the landed duty-paid cost of overseas supplies will be comparatively stable and that consequently the local wheatgrower may secure for his product (subject to certain modifying factors) a reasonably stable price from year to year. FIXING OF VALUES “It has been decided to base the duty scale not upon the actual price at which overseas flour or wheat is sold to the Dominion, but upon the current domestic value at the port of shipment. This basis is considered the most satisfactory in that the current domestic value is fixed independently of the sales to New Zealand and is not liable to fraudulent adjustment or mis-statement with the object of evading duty. “From time to time rather exceptionally wide margins exist in Australia between home consumption and export prices for flour and in order that these exceptional conditions may not disturb the market in the Dominion, it is proposed that the current domestic value shall, where the margin exceeds £1 5s be assumed to be a figure 25s above the actual price at which the flour is sold for export. Where the difference between the actual export price of the flour and the current domestic value is less than 25s then the duty will be based purely upon the domestic value without reference to the price which the New Zealand buyer is paying. Mr. J. A. Lee: What caused you to alter the duty proposed in the original Bill? The Minister: We have been investigating right up to the last minute and we were not satisfied that the scale was right to give the grower a reasonable price and cover the cost of production; and it was found possible to make this alteration without making any difference to the price of bread. DIVISION CALLED FOR Messrs. Harris and Bellringer called for a division on the proposal to increase the duty, which was carried by 44 votes to 24. The voting was as follows: AYES (44) Anderson, Hon. G. Linklater, J. j. McLennan, E. D. Bell, A. McLeod, Hon. A. Bitchener, J. D. Buddo, Hon. D. Macmillan, C. E. Burnett, T. D. Mason, J. Campbell, H. M. Ngata, Hon. Sir A. Coates, Rt. Hon., T. j. g. Pomare, Hon. Sir Dickson, J. McC. M. Dickson, J. S. Reid, D. S. Eliott, J. G Rolleston, Hon. F. Forbes, G. W. J. Girling, W. J. Rolleston, J. C. Glenn, W. S. Samuel, A. M. Hamilton, J. R. Seddon, T. E. Y. Hamilton, A. Sidey, T. K. Hawken, Hon. O. Smith, R. W. j. Stewart, Hon. W. Henare, Tau D. Holland, H. Tapley, H. L. Hudson, R. P. Waite, F. Hunter, Sir G. Williams, Hon. K. Jones, D. S. „ t Kyle, H. S. S. Wright, Hon. R. A. Lee, E. P. Young, Hon. J. A. NOES (24) Armstrong, H. T. Luke, Sir J. Atmore, H. McCombs, J . Bellringer, C. E. Martin, W. L. Forsyth, T. Mason, H. G. R. Fraser, P. Parry, W. E. Harris, A. Potter, V. H. Holland, H. E. Ransom, E. A. Horn, J. Savage, M. J. Howard, E. J. Sullivan, D. G. Jone*, W. Sykes, G. R. Jottif-n, W.. J. Veitch, W. A. Lae. J. A. Walter, E. Ml AlcCombs said that but for these duties th . p;-ice of bread in New Zealand wot id be very much lower. Mr. McCombs moved, by way of amendment, that the item should be postponed to enable the Government to consider substituting a bonus for the proposed duties. When wheat was at 5s 6d, and the duty was to drop for every *d increase in price, the Australian exporter would see to it that he collected the duty, or as much c* it as he could. It would be much more satisfactory to proceed by way of a bonus, and give the wheat growers reasonable protection and reasonable encouragement. The Chairman of Committees, Mr. F. F. Hockly, refused to accept the amendment, and Mr. McCombs’s further efforts to to have the item postponed were in vain. STABILISED INDUSTRY Mr. Coates assured the House that the best men available had been secured for investigation on the wheat question, and endeavours had been made to stabilise the industry. While it was possible to get wheat from overseas at present the day might come when we would have to pay a much higher price for it. Higher duty would give an incentive to the grower to carry on with his crops, while every other aspect of the industry had been taken into consideration. Duties on foodstuffs were always unpleasant, but in this instance it was a case of whether this country would or would not grow wheat. If we did not grow it we would be at the mercy of the world, and if a drought happened in Australia, orisomething went wrong in Canada, we would be left. % lt was necessary, also, that the grower should regulate his st | -ply, either by pooling or by financially assisting the man who could not carry on without immediate assistance. The time had arrived when they had to get together. The solution of this industry’s problems lay within its own ranks, rather than falling back and allowing the Government to do everything for it. We had fixed the price for years, Mr. Coates added, and the wheat growers were the first to ask for it to be taken

away. We hope to be able to organise the growers, millers and bakers in such a way that wheat will be bought, not in a haphazard way, but on quality. In this way the farmer who turns out the best product will get the best return