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[R. K. IRELAND.

the bother in connection wilh the labour question, he might be prepared to take a smaller profit on sheep. To Mr. Luke: The Australian miller has a much bigger outlet for the offal, and without Government restriction the price of bran and pollard in Australia rises to a fairly high level. The big demand for bran and pollard in Australia 1 consider is owing to the large number of stud farms for breeding sheep, and the dairying industry has developed to a big extent, The climatic conditions are different, and they have to go in for heavy feeding. The first deal made by the New Zealand Government was with New Soulh Wales, but they found thai the quality was inferior, and they arranged that, future shipments should be from Victoria, From the competition I have found amongst the millers there would be very little danger of Ihe farmers being at the mercy of the millers. The Government would prevent the rigging of the market to the detriment of the small farmer. My impression is that the competition for wheal, amongst the millers has given the farmer all that the miller can afford to give him. In addition to employing more labour, wheat takes more out of the land. Quite a dumber of the small farmers do the ploughing and the bulk of the work themselves, anil Ihus save expenses. I think thai in the case of (he small farmer who has been growing wheat for the last twenty years il has taken him all his time, to come out of it. What lam looking to is (he future, and if Hie future is allowed to take care of itself and Australia is allowed* to dump Hour into New Zealand, you can imagine what the position will be. .A number of the more progressive mills in the Dominion are quite up to date. To Mr. Hornsby: As to the statement that New Zealand wheat is mil good for biscuit-making, I may say that Hudson and Co., of Dunedin, have their own flour-mills and manufacture (heir Own biscuits, and they have a very good name. Aulscbrook and Co., of Christchurch, use largely Xew Zealand Hour, and they have a good name. A fairly big quantity of our Hour is sent to Griffin and Co., of Nelson, and their product is known throughout New Zealand. I have found that bise'uit-makers cam use the Australian Hour, but if they can get Hie Xew Zealand Hour cheaper they will not take the imported flour. I should say thai it is nol true that New Zealand flour is not, suitable for biscuit-making, but at the same time I would not contradict the statement of an expert biscuit-maker if he went into figures on the point, I know that the statement is made that a good deal of pollard is composed of bran. After the flour is taken out of the wheat the balance is separated by the bran and pollard separators : what goes through the sieve is pollard and what goes over the sieve is bran. [Witness further described the process in detail. | I quite believe that there is more bran in the pollard now than there used to be; that has been done to meet the demand. As to the distribution "of the wheat that was brought into this country, first of all the millers were asked to put in signed statements of their trade for the three previous years —their trade in flour; and the supply of wheat was issued on the warrants according to the average of the previous three years. Some of the mills bought up all the New Zealand wheat they could. The shortage trouble came along with strikes and the epidemic, anil Hie boats were held up, and the Government could not get 'enough Australian wheat in to satisfy some of the millers. There has been a shortage. For that reason some of the Dunedin and Oarnaru mills have been closed down. "I believe there is a boat arriving in Dunedin to-day. I believe that as far as possible the Government distributed the wheat fairly. I think no fairer arrangement could have been made. In some cases, of course, Ihe question of finance comes into the matter. Last year millers had to buy New Zealand wheat during the first four mouths to last, for the twelve months. The northern mills bought largely Australian, and I think were pretty well treated by the Government in .'regard to the shipments of Australian wheat. I should say (hat they were rather handsomely treated, if you put it in that way. To the Chairman : As to the price fixed for flour for '919 by Hie Government, f have not got, the information officially, but unofficially I understand thai the price is £15—that is 10s. less than last year. I caunol say officially whether Ihe difference of £3 is to be made up by the Government, but I understand it is to be made up. The £15 is Ihe f.o.b. price, less 2.1 per cent., and the price should be £18, less 2| per cent, I understand the difference to be made up by the Government would be £2 17s. (id. That is a new departure. II was no move on the millers part to bring this about. This arrangement is going to give the bakers flour 10s, a ton cheaper than last year. I do nol think it will reduce Hie price of bread. It may be thought that Hie flour-miller makes a good thing out of it, but I would like to explain thai he does not. The risk we take must be remembered. I want to explain that the baker has increased costs lo meet. The new drivers' award adds considerably to the cost, of bread; and my opinion is that, he is entitled to the difference. 120,000 tons are used in Hie year —that is £360,000. I understand that the prices of bran and pollard have been fixed at £5 10s. bran and £7 10s. pollard, but T cannot say so officially. I could give you the freight on wheat in 1911 and 1919 to Auckland later on. To-day the cost is approximately Bd. a bushed. There is no Government regulation in regard to the quality of pollard we put through ; that is left entirely lo the miller and the consumer. Dreadnought wheat has been on Ihe market about four years. Ido not know where it originated ; it is of the Tuscan variety. I should say I hat the men who have been fortunate enough to getgood yields of Dreadnought wheat have probably made a good profit. It is difficult to say whether it will be largely grown in this district in the future. New varieties, sometimes come in, and then after a few years they disappear. As to Australia discriminating against New Zealand, they publish it in their official quotation. The fs>ct of Australia raising Hie price when the New Zealand price wa's raised may have been a coincidence but you have (o draw your own conclusion. The Wheat Board is run by men who know their business, and if I were on that Board in Australia I would say, " New Zealand is short; charge them more." The duty asked for on flour of £2 10s.'a ton is the same as Australia is charging us, and Hie duty on their bran and pollard