Wheat (1) - Part 3

Image 263
image 64 of 100

This transcription is complete

JOHN COLLINS WILLCOCK, M.L.A., sworn and examined:

5357. By the CHAIRMAN: You wish to put something before the Commission?—Yes, in connection with the flour that is sold in the North-West. Mr. Underwood told me that the flour sent to the North-West comes out of the Pool and is sold by the Wheat Marketing Scheme. The flour that is gristed at Geraldton is sent to Perth and costs 12s. 6d. a ton freight net. The different in freight between Fremantle and the North-West ports and Geraldton and the North-West ports is 7s. 6d. per ton. There are also extra handling charges to be considered. Geraldton flour is first loaded here, then unloaded in Perth, stored, and other flour out of the Pool is loaded again into the ship at Fremantle and despatched to the North-West, giving four handlings instead of two, which would make a difference of another half-crown a ton in the transit charges on flour sent to the North-West. I asked Mr. Hall, the secretary of the Wheat Marketing Scheme, to get me the figures of the trade done in flour in the North-West. He says in writing to me that Ockerby & Co. do 75 per cent. of the trade, the balance of the trade being done between Katanning (Piesse's mill) and Geraldton. A fair quantity of the flour goes from Katanning so we can reasonably assume that Katanning and Geraldton are about equal in the trade. This gives Geraldton 12½ per cent. of the North-West trade. The "Bambra" goes up every six weeks and she takes pretty well 50 tons of Geraldton flour. Say she does nine trips a year, it means 450 tons, and that is only 12½ per cent. of the total trade with the North-West. It will thus be seen that that trade represents about 3,600 tons. I tried to get the actual figures for the Commission but could not, so what I am giving is merely an estimate. At the present time nearly the whole of the flour sent to the North-West is penalised to the extent of about 22s. 6d. a ton through not being shipped from Geraldton. In other words, the farmers are losing that amount because the expenses are met by the Scheme.

5358. By Mr. BROWN: You say they are sending 50 tons a month from here?—Yes, but trouble arose about last Easter when they could not get space for the flour on the State steamer. I went to the State Steamship Service and arranged through the Minister that on every northward trip the "Bambra" should reserve space for 50 tons of flour.

5359. How would the Scheme be losing by the existing state of affairs?—The surplus of the Geraldton flour has to be sent to Perth at a cost net of 12s. 6d. per ton. If the flour was shipped to the North, that cost would be saved.

5360. Then the increased cost would be merely the cost of sending the flour to Fremantle?—And the storage there and the handling into and out of store. Of course, as a matter of fact, they do not send to the North, Geraldton flour which has gone to Fremantle from here, but they allow the merchants to retain their own trade with the North. Flour of the Pool goes north and the freight paid from Geraldton to Fremantle unnecessarily.

5361. By Hon. R. G. ARDAGH: But does not Ockerby's flour go through the Wheat Scheme?—Yes, but they allow the Geraldton mill the difference in freight; that is, the Government pays the railage to Perth.

5362. By the CHAIRMAN: You claim that the people of the North-West could get their flour for approximately 22s. 6d. a ton cheaper if it was sent from here?—No, I claim that the farmers are losing the freight on the flour sent from Geraldton to Perth; but the 7s. 6d. freight by water would certainly affect the people of the North-West.

5363. By Hon. J. F. ALLEN: If the selling price of flour was fixed the increased cost is charged against the Pool?—Yes, they allow the Geraldton mill 12s. 6d. for sending it down so the Pool is out of that money. There is some little allowance of 4s. a ton to people who sell through the Pool.

5364. By Mr. HARRISON: Are you doing less trade with the North-West that you did before the Scheme?—In those days a considerable quantity went to Java and North-West ports. There was not the inducement for these people to try to do a trade in the North-West because they already had a market, the Government taking all their supplies.

5365. So the export from Geraldton is not as strong as it was?—No, and there is no necessity for the mill authorities to look for export trade because they have their market. They grist on behalf of the Scheme and they send their surplus to the Scheme.

5366. Would the local mill be able to meet all the trade of the North-West if they could get it?—I think so.

5367. Is it true they are going to enlarge the local mill?—Yes I think they have signed the contract.

5368. There would be no danger of your not being able to supply a much larger quantity than at present?—None whatever. Boiled down it means that if there is a thousand tons of flour trade with the North-West the Scheme loses approximately £750. Personally I think it would be even more because we ship 50 tons every time the "Bambra" passes.

5369. By Mr. BROWN: What difference in freight is there as between Fremantle and Wyndham and Geraldton and Wyndham?—I understand it is 7s. 6d. a ton.

(The witness retired.)

The Commission adjourned.