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Federal Finance
Arranged For
Wheat Storage
MELBOURNE, Friday,
The Minister for Commerce and Agricul-
Inre (Mr. McEwen), announced to-day that
the Commonwealth Government has approved
steps necessary to ensure that su iii cient ('
Birralee will exist in Australia to take care of
the 1954-55 harvest.
The cost of providing this storage will he
up to £3,500,000.
Mr. McEwen said that the
urgent need for additional stor-
age had called for quick decisions
if the new storages were to be
constructed in time for the next
harvest. The Commonwealth Government
had, therefore, arranged
the necessary finance rather
than risk delay in negotiating
with the States on the provision
of the capital immediately íe
qr red. The cost to the wheat
grower would be on the same
basis as charged him for present
storage facilities. That was interest,
normal depreciation and
operating costs, including maintenance.
"There is now no reason why
the Wheat Board and the State
authorities concerned should not
yet on with the building job
straight i away," said Mr. Mc-
ewen.
He said that in New South
Wales, Victoria and South Australia
up to 45,000,000 bushels of
additional storage is required by
the beginning of the next wheat
season if they are to be in a
position to hold the carry-over of
this season's wheat and, at the
same time, to take the new season's
crop into store.
"The need for increased stor-
age capacity within Australia has
been created by a combination of
circumstances," said Mr McEwen.
Simultaneous occurrence of
good harvests in both northern
and southern hemisphere counties
for an unusually long period
has filled granaries the world
round. Many European countries
and India have been temporarily
near self-sufficiency. Other countries,
like France, which are normally
importers, are, for the moment,
exporters. The chief suppliers,
Canada, the United States,
Argentina and Australia have
large stocks.
He said that the' Wheat Board
would arrange with the State
bulk handling authorities' ttfJJSe-,.
sign storages which, by 'agré'é-!1
ment, would fit in with their
existing storage facilities,v-''ark.
the' Wheat Board would ask the
State bulk handling authorities
to arrange and supervise the
construction of storages.
The State bulk handling
authorities, through their respective
Governments, would be given
an option to purchase these
storages. The Commonwealth
ti'orM not expect any more for
the storages than their depreciated
value at the time of sale.
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