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THE PRICE OF WHEAT.
SHORTAGE OF SUPPLIES IN
AUSTRALIA.
TASMANIAN PRICE GA A
BUSHEL.
ATTITUDE OF THE GOVERNMENT.
DEBATE IN THE ASSEMBLY.
In the Assembly yesterday Mr. Giblin moved
the adjournment of the House to
call attention to the rise in the price of
wheat in Tasmania, asserting that
it has now risen to what was approaching >
famine prices. He said it was due to
certain influences in. Australia. If the
export of wheat had been prohibited
there would be no shortage. Owing to
the drought there was likely to be little
or no surplus, and it would be a very
serious state of things. South Australia,
Victoria, and West Australia had short-
ages. New South Wales, and it might
be Queensland, might have a little to
spare. In Tasmania last year we only
produced one-third of the wheat we consumed.
Where was the wheat to be got
from? It would be necessary to im-
port from oversea, probably from Canada
or Russia. Usually the prices in
Australia were regulated by the Melbourne
and Sydney markets, but under
the new circumstances, when importers
shipped wheat here from oversea there
would be no check as to the prices
they would charge for the same; the con-
sumer would suffer from the prices in
turn-put on-by the importers, millers,
and bakers. The Assembly had done its
best to make provision for snub a car
stringency, but its efforts had been
thwarted by the Legislative Council, has
recognised that the prices of wheat could
not, at this time, be cut down to normal
. rates, and he quite agreed that the
farmer ought to have an extra dell, but
this was not the question of the farmer,
but the difference between the price paid
for wheat to come here from Russia or
Canada and what it would be to the con-
sumer after being loaded by the gratuities
lions of the trade. At present the Gov
request and Parliament had no control
over that position, and it was a serious
one to the people.
A Member: Are things better in the
other States?
Mr. Giblin: Certainly. New South
Wales, by the action of its Government,
is, going to have the price of wheat fixed
for next year at 5s. per bushel, which is
a good price to the grower, and reasonable
under war conditions to the con-
sumer. Here in Tasmania we are up to
6s per bushel already, and what is it
likely to be next year? When the wheat
comes from oversea a commission might
gather information as to what it cost,
and keep those who handled it down to
reasonable profits. Without any power
to regulate prices we are absolutely
hopeless. He would ask could Ministers
see any prospect of dealing with the difficulty
themselves? Could they do some
thing in the way of directly importing
wheat into Tasmania, and make a voluntary
agreement with the millers and
also directly concerned as to the prices
the resulting flour and bread should be
sold at?
The Chief Secretary: One merchant
Vic says there is no conscience in business.
'
Mr. Giblin: An agreement is an agreement,
and the carrying of it out may be
enforced.
Mr. Colton held that it was impossible
to artificially regulate the price of
wheat without robbing somebody. In
attempting to regulate prices or wheat
by artificial means they would be doomed
to failure, and only injure the producer.
Why only single out wheat? He
had seen flour rise to -18 per ton before
now, and wholly due to adverse seasons.
The farmers sold their wheat in open
market, and the price thereby obtained
was the fair price of it. There was no
such thing as a ling in the matter of
selling our wheat. There was a ring
that said that a man should receive a
certain rate of pay whether he earned it
or not.
Mr. Mulcahy, who was subjected to a
running, fire of interjections from the
Ministerial side, said they all realised
that, unfortunately, there was a possibility
of, the wheat supplies of Australia
becoming insufficient, but how could little
Tasmania by Act of Parliament control
the price of wheat coming from
Manitoba or Russia, and the" "ances of
the world's markets? '?
The Chief Secretary: We can control
the price when the wheat is landed here.
' Mr. Mulcahy: No; they will not send
it if you interfere with if. We cannot
in Tasmania control the price of imported
wheat. The world's price of it will
only be affected in Australia by the im-
port duty on it, the price being determined
by the world's market. And when
foreign wheat comes in here it will affect
the price of the lneaU.v-p.T>duocd wheat
to the detriment of the farmer.
Mr. Giblin: 16 there any competition
between the millers in Hobart P
General interruptions from the Ministerial
side.
Mr. Mulcahy appealed to the Speaker
to keep order, and let him speak. When
he was able to proceed, he said: If wheat
and to be imported from other countries
A 'Mell had a surplus there were plenty
M would import it, and the prices
'would be regulated as he had said; but
n, fW artificial prices could not be done.
is we were reduced to the necessity of
importing from abroad, the local price
of ii is out would be increased to a cor
I mi margin, which would Tiring outside
producers into competition. There was
really no soundness in these he Dies of
Mu- Labour party, which were misleading
the public as to what the Government
could do, as they all knew the Government
could do no such thing effectively.
The Premier regretted that the member
for Denison had seen fit to introduce
the subject that day. The last two
speakers had not dealt with the matter
seriously. The subject was a serious one
for Tasmania, which imported annually
about .'?00,000 bushels a year. At the present
time 80 per cent, of the State's requirements,
both in looiIslnfTs and seed,
would have to be imported. If the farmer
cry alone were responsible for inflation of
prices The- matter could easily be dealt
with. The farmer did not hold for in-
flated prizes. li was the men in the
cities who stored the grain out of use.
The Opposition had rejected a bill designed
to procure information as to
stocks of grain. The Government of New
Zealand was negotiating for the importa-
tion of wheat, although that country
produced much more largely than Tasmania.
The Government was making
inquiries as to the possibility of getting
a share of the New South Wales crops,
which the Government of that State proposed
taking over he had not been idle
in seeking quotations for wheat from
other parts of the world, but he would
not quote the prices he. had received.
The position was very serious, and if
something were not done or an improvement
resulted there would be a serious
shortage of wheat in Tasmania, The
member for Denison said the Government
ought to take steps to procure wheat
without authority. That was a very
serious step to take indeed. If it were
conclusively shown that the people were
in danger of starvation, then it was
more than likely the Government would
take action, and would depend upon the
support of the House. The Government
of the State could not stand by when
there was an actual shortage of food.
Mr. Mulcahy-. You need not say more.
There is no need for the Government to
import wheat if it is needed. It will
come if it is wanted.
The Premier said the Government was
not in a position to import wheat at any
price, or in a shipment of less than
iRO.Ns bushels. Would Air. Mulcahy say
he was prepared to take that quantity?
Air. Mulcahy: Yes, or five times the
quantity.
The Premier: The hon. member does
not know anything about it. If wheat
were to be imported into the state at a
minimum cost, the only way was for the
Government to get the importation, and
share it out to the millers.
Mr. H. Hays: Why not do the same
with other products?
The Premier said wheat was a staple
food. Without it there, must be hunger
amongst the people. They could do without
other products.
Mr. R. Hay's: Why don't the Government,
import everything the people use
if they can do it cheaper than other
people's.
The Premier: The hon. member is too
socialistic altogether. We believe, in a
reasonable amount of private enterprise.
Where the very existence of the people
is not at stake the Government should
not interfere, with the business of the
people.
Mr. Sadler said the Premier was to be
commended for making inquiries as to
wheat for the State There would be a
shortage all over the Commonwealth.
Tasmania did not produce enough for its
own requirements, simply because it did
not pay. If famine prices were going
to prevail, then it was the duty of the
Government to take steps to relieve the
position.' Occasionally the millers correct
ed the supplies. He. saw nothing wrong
with the Government taking action in
the matter.
The Chief Secretary (Hon. J. E. Ogden)
said the Government had to see that we
want or privation existed. Mr. Mulcahy
said it was impossible to regulate the
price of wheat. Why was it that wheat
was being sold at 4s. 6d. in New South
Wales, and the same wheat was sold
at Gs. in Tasmania?
Mr. Mulcahy: Can it be bought for
4s. 6d.?
The Chief Secretary said that price
had been fixed by the Food Commission.
It was a question of meeting the demand.
They would be very lucky to get enough
for their own requirements. The matter
should have been dealt with hy*tho'l,'ede
ral Government, which should have
taken prompt action to prevent the ex-
portation of wheat, and to see that, the
merchants did not unduly inflate prices.
A local merchant had said that there was
no conscience in business, and that a
train had a right to take advantage of the
situation.
Mr. Mulcahy Within reason, he has a
right.
The Chief Secretary i, But not to take
advantage. of the necessities of the people,
and rob them.
Mr. Mulcahy: That is the sort of re-
mark that might be expected from the
hon. member.
The Chief Secretary said the Federal
Constitution would not allow the Federal
Government to take action. The war
showed the need for the Federal Government
being given full powers over the
trade and commerce of the Commonwealth.
(Labour i Hear, hear.) Members
should see to it that the Federal Government
was given such powers in order to
protect the people. The Government
had the right to do whatever was necessary
to give the people food supplies. He
hoped the Government would be supported
in doing so.
Mr. Whitsitt said that he had seen in
"The Mercury" that the wheat available
was approximately 4,00.1,000 bushels, and
last year it was almost ¡13,000,000. If such
were the case, wheat being a staple pro
duct, and the chief source of the food
supply, he commended the Government
for its action.
The Chief Secretary said that a few
individuals in Hobart could unite and
get out a shipment, and make the people
pay what they liked.
Sir. Whitsitt said the proper way to
put, that down was for the Government
to see what wheat could be got for, and
provide it as actual cost, and then no-
body would benefit out of it, (Labour:
Hear, hear.)
Mr. H. Hays said the question was
one with which the war had very little
to do. There was only something like
<l,000.O00 bushels available this year, in
against 33,000,000 the previous vein. The
Government of New South Wales and
fixed the price of wheat, and yet only
lost week a parcel was put up to auction,
and fetched 4s. 10d. a bushel, a higher
price than that fixed by the Government
The whole question was one of supply
and demand, The prices were entirely
due to the season. If prices remained
about 5s.- a bushel, and hay at 17 5-,.
a ton, the farmer would cut his crop
for. hay, and the price of wheat would
go up. No legislation could prevent
that. If the Government wished to fix
prices they should guarantee the farmer
5s. a bushel for a number of years.
The Chief Secretary: What about after
it leaves the farmers' hands'
Mr. Hays: The prices are used by supply
and demand.
The Chief Secretary: By a ring.
Mr. Hays asked what was going to happen
if the farmer decided to keep his
wheat; for seed?
The Premier- Surely he could do that.
Mr. Hays: Then the whole thing bp
comes a hitch. The cost of production
was so, heavy that farmers were going
in for grazing instead of growing crops.
The whole thing would be brought to
ridicule, because on the one hand the
Government was asking the farmer to
put all the land he could under crop,
and yet offering him an unprofitable
price. The New South Wales blunder
would be repeated in Tasmania.
Mr. Dicker said that Mr. Hays had
said that prices in Australia were governed
by the world's price, but the latter
waned. For instance, Australia last
year grow 00,000,000 bushels more wheat
When she required, and the wheat that
was soul to the old world realised a lower I
price than wheat in Australia. All Australian
produce was cheaper in England
than in the country in which it was
grown.
Mr. Mulcahy: That is the first time I
have, heard of teach a thing.
Mr. Sheridan: It is true of New Zealand
mutton.
Mr. Mulcahy: Is it true of Australian
wheat?
Mr. Dicker: Undoubtedly. Continuing,
he said that wheat was not grown in
Tasmania because it would not pay, and
that was not because of the increased
cost of the production, but because the
cost of production had decreased in other
countries more than in Tasmania. labour
saving machinery in Australia made it
possible for wheat to be brought off the
holds ready for the miller at a farthing
a bushel. It was easy enough for men
in charge of commodities to fix prices,
because there was no conscience in business;
it could not permit of conscience,
because it existed for profit.
Mr. Martin said that it was highly desirable
that in time of war the Commonwealth
Government should be allowed to
step in and fix prices, but under the
present Constitution the Government
did not have the power to become a
buyer except for Government purposes.
When next the people were asked to ox
lead the powers of the Federal Government
he believed that they would do so
by an overwhelming majority. If Gio
State Government brought wheat into
Tasmania they would see that it was distributed
for the benefit of the people and
not for the benefit of those who gambled
in wheat. The bread question was an
important one to the poorer classes of
Tasmania, and if the Government were
to take the step which might be necessary
even without Parliamentary authority,
they would have the authority of public
opinion.
Mr. Giblin said that to make
his argument more simple he would suppose
that wheat could be imported into
Tasmania at 8s. per bushel. He had
never suggested the fixing of the price
it under that figure, but In Government
could prevent it from being raised
to 12s. Without any control, that wheat
could be landed at 8s. and sold at 12s.,
but it was possible to have an authority
to restrict the price to somewhere about
12s.
The motion for the adjournment, of the
House was then by leave withdrawn.
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