The Australian wheat industry is facing a serious crisis. The causes of this are partly internal and partly international. Good seasons in the major wheat-producing countries have caused a glut on world markets, and Australian growers anticipate a bountiful harvest, Farmers consequently fear that they will have to sell at prices far below the cost of production, with disastrous results to individual producers and to the country's second largest primary industry, Australia has always opposed schemes for the international restriction of production, maintaining that restriction, when millions of people throughout the world are suffering from malnutrition, is both a human and an economic tragedy. Unless however, the world returns to peace and saner economic policies, restriction of production seems the only alternative to suicidal competition for a limited market, and the Government and representatives of the wheat industry are considering various international proposals, Meanwhile, the disposal of the coming harvest is an urgent problem. Because of the size of the anticipated Surplus, a guaranteed price covering cost of production, plus a sufficient margin to maintain the solvency of the growers, is expected to cost the tax-payers about £12,000,000.
The Commonwealth Government considers that it should not be required to shoulder the whole of this burden in addition to its present heavy defence commitments. At a Premiers Conference the Commonwealth offered to finance approximately two-thirds of the bounty, the State Governments sharing the remaining third. Victoria and Tasmania rejected this proposal A second Conference now in session has also failed to reach agreement, and its deliberations have been held up pending clarification of the inter-rational situation.
The Victorian Government's opposition tp the proposal is not entirely due to the fact that participation would impose a disproportionate burden on that State. A constitutional issue is involved. The Victorian- Premier, Mr. Dunstan, insists that the. Commonwealth is constitution ally responsible for all trade matters, and that the acceptance by the States of responsibility for paying a bounty on wheat would create a precedent of limitless and dangerous possibilities. Mr. Dunstan has even challenged the constitutional legality of the Commonwealth proposal.
The growers themselves are unable to agree what course should be adopted, but they are united in asserting that something must be done, and done promptly, if the financial stability of the industry is to be maintained.
Text read from the printed page and cleaned; old type leaves the occasional error.