I. -17.

[c. H. HEWLETT.

58

That is an enormous tax : are you sure of it ? —Yes ; it is an enormous tax. Have you the wheat-growing land specially valued at a higher rate ?—Oh, yes. I would like to get those figures ?—Yes, I shall send them to you. You have quoted figures in regard to wheat-growing land in South Australia. What about Western Australia, where wheat is grown in large quantities : can you give any figures in regard to Western Australia ? —No. I do not know any one there. I had to send a letter away to South Australia with questions, and answers had to be cabled. I have figures showing the cost of working the land in Western Australia ; they are very much lower than your figures. You have no knowledge of Western Australia ? —No. Do you know that dairy-farmers producing butter and cheese have no protection at all: they have to supply their goods in open competition with the world ? —Yes. Do you know they have to pay an extra cost, because of the protection the wheat-growers get, in the goods they buy ? —-In the shape of their bran and pollard. Do you know that Yes. Do you think that is a fair proposition to the dairy-farmer that he should pay for your protection ?—I do not think you could adjust all taxation so that it would be equitable to everybody. Now, we see the position, and we —the farmer and merchant —are doing our level best to remedy it. Does the farmer pay for the whole of that research work ?—The farmer pays l|d. for every 50 bushels he produces, the miller the equivalent of ljd. for every ton of flour he makes, and the baker the equivalent of l|d. for every ton of flour he buys. Dr. Reakes could say whether the Government subsidizes it. Dr. Reakes: The Department of Scientific and Industrial Research subsidizes it. The Chairman.'] Regarding the item for f.o.b. charges and the levy, is that research work included in the levy ?—Yes. The f.o.b. charge is exactly 3d. With reference to the charge of 4s. 2d. for supervision, would that be entirely for wheat-growing, or for the whole farm ? —No ; the whole farm. We have been in the habit of adding a certain proportion of the manager's salary. He looks after a certain part of the business, and I charged what I considered a fair thing. I have done it for years. On a larger farm the charge would probably not be so much. Those are last year's figures, before we had this extra 2,000 acres. The poultry-farmer complains that he cannot get along with his business because of the high price of wheat ? —Yes, I have seen that mentioned in the newspapers. The poultry-farmers complain that their business will be completely paralysed if some relief is not given ? —I did not know that. And the dairy-farmers are making complaints that they cannot get cheap animal-food ? —I do not think the dairy people would get it any cheaper if the duty were taken off, because our experience when we had to import flour has been that we could not get wheat-offal. You are dealing particularly with wheat, of course, but would you suggest that the present duty on bran and pollard of £1 a ton be retained ? —I have not gone into the bran and pollard question. I am not going to answer that. I have gone thoroughly into the cost of production of wheat from the farmer's point of view. Mr. Jones.] My understanding is that you have based your costs on land valued at £40 an acre, and have not based it on the cheaper land ?—That is so ; 420 acres were cropped in wheat. Mr. Jones : The point I wish to make is that with 2,881 acres of land with an average value of £15 ss. lOd. per acre you are basing your figures on land valued at £40 an acre. The Chairman.] According to that, some of the land would be valueless ?—Some of it would be valued at £4 16s. 3d. per acre. That is very cheap ?—lt is pretty poor land, some of it; it would not carry one sheep to the acre. What we want really is the value of the wheat-growing lands ? —I only gave those prices in answer to your questions. Do you suggest that £40 is fair average value for wheat-growing lands in the South Island ?— lam not prepared to say that. I should say land with a yield of over 35 bushels should be. The average for New Zealand is over that, I think : is it not 36 bushels per acre % —The average for New Zealand is 31 bushels per acre. I am taking the average over ten years. It runs from. 31 bushels per acre in 1919 to 36 bushels in 1928. The average would be over 31 bushels per acre ? —I understand it was 31 point something over the ten-year period. Oh, yes, there was one very low year, when the yield was only 24 bushels. That would bring the average down ?—Yes. I have put it down that land valued at £40 per acre would produce 35 bushels per acre. That is more than the average in Canterbury. I should say land valued at £35 per acre would produce 31 bushels per acre. Is there a reasonable acreage of wheat put in this year ?—Yes, the average. Has the agitation which has taken place in regard to the suggested reduction of duties affected the farmers who grow wheat ? —The farmer had to make up his mind what he would put in before there was any serious agitation. He made up his mind that he was getting protection, and therefore planted the wheat I—l1 —I do not think the farmer bargained that it would be interfered with. What notification would the farmer require of any change in duties ? —A fair thing is to give us a chance to work out our own salvation. Supposing there were to be an immediate change, what notice should the farmer get so as to arrange for cropping ? —One could not state any particular length of time. I am not suggesting any change will be made, of course ?—The farmer would need at least twelve months' notice, because he would have to alter his crop-rotation. It would be according to