Telegraph (Brisbane, Qld. : 1872 - 1947), Wednesday 9 January 1946, page 4


States Have Say On Wheat Plan

CANBERRA: State agreement on the Commonwealth's plan for the stabilisation of the Australian wheat industry is necessary because of the large part which State Agriculture Departments play in wheat production.

The plan will be put before the States at the Premiers' Conference in Canberra this month. Agreement by all States is required before it can operate. During the war the Commonwealth, through its national security powers, took control of production, but this is now reverting to the States. The suggested Commonwealth plan makes provision for a guaranteed home consumption price of 5/2 a bushel fob bagged, and the same price for all wheat exported during the next five seasons. Before >11, c war the only guaranteed price to growers was 5/2 a bushel for wheat used In Incnl flour production. Tills 'represented only 20 or 21 percent of lite total wheat crop. Commonwealth wheat- experts pointed out today that violent fluctuations in wheat export prices had had disastrous results for wheat farmers, and stabilised price over a long period was ari absolute necessity. Attempts to introduce a stabilisation plan before the war had always broken down through disagreement among States on detail. Stock feeders will not be required to pay the full 5/2 a bushel, it was

siaieu iooay. ine commonwealth Would continue the system of subsidies, which had operated for the post few years. Last year the Commonwealth paid out more than £4milllons in wheat subsidies. Sir Earte Page is Pleased with Plan GRAFTON: Sir Earle Pago snld that he was glad the Prime Minister (Mr Chiflcy) was reverting to- the principles of Ihc wheat stabilisation scheme which he as Minister for Commerce established In 1940. "Wlicn the Minister for Commerce (Mr Scully) moved to wipe out the equalisation fund I pleaded In Parliament that the home consumption price of 5/2 bushel, which I had established in 1038, should be used as the base for a guaranteed price for all wheat delivered to the pool, and that the returns for wheat above these prices should bo divided between the farmers and the stabilisation fund." said Sir Earle. '"Action along those lines during the nast three vcars bv the Lahour

Government- would have retained intact the continuing of the stabilisation scheme,"Sir Sir Earle said the existence of a substantial equalisation fund would have created big vested interest to support the continuance of the Stabilisation scheme when the war was over, and would have assured the certainty of a constitutional change to enable it to bocomo a permanent feature of Australia's economic life.