WHEAT BOARD AND THE FREE MILLS

Manawatu Times, Volume LIV, Issue 7285, 12 October 1933, Page 6

WHEAT BOARD AND THE FREE MILLS

Position Outlined to Tariff Commission

RATIONING OF WHEAT UPHELD

Per Press Association. CHRISTCHURCH, Last Night. The Wheat Board’s case in the disagreement between the board and the free mills was placed before the Tariff Commission by Mr H. E. Nicoll, a member of the board. Mr Nicoll said tha.i, so far from having been denied wheat, some of the free mills had actually not taken up -the allocations allowed them by the board and several had imported wheat from overseas.

Giving evidence, Mr Nicoll said the criticism levelled at the boaid had been both unwarranted and unfair. On tho formation of the board, the first subject for consideration was finance. The board was under an obligation to buy all f.a.q. wheat from the growers, and had no finance. It was icalisod that growers would be clamouring to turn tho wheat into cash as soou as it was harvested and that heavy selling pressure would develop. The banks were prepared to advance limited amounts based on the export value ol wheat.; all the banks would have advanced would have been about Is a bushel, on which it would have been impossible to carry on. The board approached the millers, who agreed to assist with the aid of tho banks, but it would have been impossible to obtain the banks’ help unless the millers could put forward a concrete proposal showing that there would be a stable price, with no fear of breakdown. 3 The Wheat Board then evolved the present system of rationing, which was found necessary in order to ensure al! mills a share of tho flour market and thus encourage them to purchase as much as possible of their requirements in the early part of the season. The new mills protested against their allocations and carried their protest to the Minister of Industries and Commerce, who summoned representatives of the freo mills and the board to Wellington. Messrs H. Worrall and R. H. Webb represented the free mills, while Mr R. J. Lyon and witness represented tho board. Tho result of the conference was that Mr Lyon and witness conceded what Messrs Worrall and Webb asked. An agreement was signed by all four, but Mr Worrall said that, while he was personally satisfied, lie was not authorised to bind the Star Milling Companp and the Simplex Milling Company, but if these mills did not honour the agreement, he would have nothing more to do with them. Mr Worrall had, however, thrown to tho winds the agreement which he had declared quite satisfactory, and had caused an agitation ever since.

Mr Nicoll repeated that it -was his emphatic opinion that, without rationing of wheat to the mills, it mould have been impossible for the board to carry on and the effect would have been disastrous to the growers.

„ Mr W. W. Mulholland denied that assistance to the wheat-growers was retarding the poultry industry. Fowl wheat was available to-day in South Island ports at a price which would land it in North Island ports at no more than it could be landed from foreign countries free of duty. He also insisted that wheat-growing was essential to the success of the pigraising industry. Ho contended that the maintenance of the sliding scale and even tho reinstatemnt of duties taken off was important and necessary. Professor R. E. Alexander argued that the price of whaet had relatively little effect on the price of bread. The four-pound loaf sold for lOd or lid, of which, at 4s a bushel for wheat, the farmer's share was 3 l-sd. Reduce the price of wheat 25 per cent., and tho loaf would bo reduced 6 or 7 per .cent. If wheat was given away, the consumer would got a reduction of only 25 per cent, in his bread bill.