PLEA FOR CHEAP BREAD.

Taranaki Daily News, 19 May 1921, Page 4

PLEA FOR CHEAP BREAD.

HOUR IMPORTS SOUGHT.

MINISTER REFUSES REQUEST.

CONTRACT WITH WHEAT GROWERS

A strong plea to remove the embargo on flour importations to obtain cheaper bread, especially during the winter, has been made to the Government by Mr. S. G. Smith, M.P.

Mr. Smith telegraphed to the Hon. E. P. Lee (President of the Board of Trade), stating that strong representations had been made to him that Australian flour was now quoted at £l3 10s a ton f.o.b. Melbourne, which, with freight added, could be sold here at £3 a ton cheaper than New Zealand flour. Mr. Smith asked: “In view of the necessity to adopt every reasonable means to reduce the cost of living, would it not be possible to remove embargo on flour importations for at least a period, and thus ensure cheaper bread during the winter ?”

In reply, the Minister now writes: *‘l have consulted the Board of Trade on the matter, and I am informed that it is apparent that you are not acquainted with the reasons for continuing the embargo on importations of flou?, etc., from Australia. In the early part of this season, when the Government was willing to import wheat from Australia, the Australian Wheat Board asked a famine price, which the Government would only have been justified in accepting under extreme need. The board was therefore forced to enter into the present arrangement with wheat growers and flournrillers in order to provide wheat and flour at reasonable prices. Under this arrangement the millers have bought from the Government and paid for £2,000,000 worth of wheat. The price fixed for flour ia based on the price millers paid Tor wheat, and the Government could not, without a grave breach of faith, permit importations of Australian flour.”

To this Mr. Smith replied by telegram last night as follows:—**Your letter of 17th inst. reference importations Au#' tralian flour received. Am under no misapprehension regarding position, and, notwithstanding Government’s repeatedly expressed determination to assist in every way to reduce cost of living, my people probably paying one penny to twopence per loaf more than necessary because of refusal to lift embargo. Still urge that embargo should be lifted even for short period, thus enable the obtaining of cheaper bread during winter months.”