Wheat (1) - Part 4

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it into the Scheme. He would have to acquire wheat for his own requirements under the earlier clauses. Under Clause 10—

The agent shall furnish to the Minister from time to time at such intervals as the Minister may direct, a statement in writing of his said requirements for local consumption for the period therein mentioned.

He acquires the wheat for his own requirements at the current price fixed by the Minister on the advice of the State Wheat Committee. Of the wheat to be acquired by the agent, he may take whatever is necessary for his own legitimate requirements at the price fixed for the time being. Then there is the contract wheat. That is to say, contracts were made for the purchase of wheat by some of the millers pending negotiations. There was apparently some sort of understanding that they would not buy on their own account on the eve of their appointment as agents for the Government. But contracts were made, and the question arose whether that wheat was to be their wheat or the Government wheat, or in other words, was their appointment in effect to relate back to some earlier period so that these contract they had made would be deemed to have been made on behalf of the Government. In such case they would have to acquire the wheat for their own legitimate requirements under Clause 10. The question was, what was to be done with this wheat which had been purchased under contract, which contract had been made pending the negotiations for these agencies. So far as they took wheat for their own milling purposes they would have to purchase it from the Government, on whose behalf they had been acquiring the wheat, and Clause 10 would apply. Clause 14, however, deals with contracts which they have made on their own behalf pending the negotiations for their appointment as acquiring agents on behalf of the Government. The suggestion was, "But you have to bring in the wheat just as if you had been our agents when you made these contracts. You will have to pool it. That wheat will have to come into the Scheme, and so far as you take it for your own milling purposes you will have to take it under Clause 10." Clause 14 says—

All wheat acquired by the agent under contracts of sale made prior to the first day of December inst. (except so far as such wheat was delivered to the agents at sidings prior to such date), of which returns are to be furnished by the agent, shall be deemed to have been acquired by the agent on behalf of the Minister under this agency; but the agent shall be responsible for payment of the contract price to the farmer. For such wheat the agent will receive such certificate for an interim advance and will be entitled to participate in the net proceeds of all marketed wheat on the same footing as the farmer.

Therefore, although they made these contracts, the wheat was deemed to have been acquired on behalf of the Government. It all came under the Scheme. So far as they required that wheat for their own mills they would acquire it under Clause 10. The origin of Clause 14 was the discovery that pending negotiations for their appointment as agents of the Crown some of the millers had been buying wheat. Instead of ceasing to buy on the eve of their appointment as agents for the Government they had been making contracts on their own account. The Government said, "You will have to bring this wheat into the Scheme just as if you had been our agents when you made these contracts. You will be paid for it, when we take it over from you, just as if you had taken it from the farmer for us." That was in order to put them in just the same position as if they had not been buying wheat pending the negotiations. It was deemed that they ought to have abstained from buying knowing that they would be appointed agents for the Government, and that they should not have bought on their own account on the very eve of their appointment to such position. The Government also said, "You will be paid whatever you have paid for the wheat as Government wheat. As you take it for your milling, you will under Clause 10, just as if you acquired it after your appointment." If the clause stopped there it would have been clear as to what the position was. For that wheat they would have been paid just as if the Scheme had dealt with the farmers, and so far as the agents wanted it for milling purposes, they would take it under Clause 10. Before the agreements were completed the second paragraph was brought to me and actions are pending as to what is the meaning of that second paragraph. Seeing that these proceedings may develop—they have not gone beyond the stage of the writ, because the proceedings are pending—and whether it will be necessary for the Government to go on with the proceedings or not I cannot say. If the actions are going to be brought to finality, a difficulty presents itself to me, how far I ought, except confidentially, to express any opinion on the claim.

6403. It had better be confidential, then?— The case may be brought into court.

6404. Hon. J. F. ALLEN : I prefer not to hear it.

6405. Mr BROWN ; I prefer also not to hear it.

6406. By the CHAIRMAN : There is a prospect of the case going into court?—Yes.

6407. In what position are the Government regarding this wheat?— The Government by compulsion under the Act have made the farmer bring his wheat into the Pool; that is, if he desires to sell it. Is that not so?—Yes. We have no compulsory power of acquisition; but the farmer was morally compelled, because he had no other market. Section 10 of the Act seems to block his sale subject to the exemptions.

6408. He is compelled by the Government to sell to the Pool and through no other channel?—Yes, if Section 10 is brought into operation.

6409. Even the Railway Department are prohibited from taking, without permission, any wheat over the railway lines to carry it as a common carrier?—Yes.

6410. Therefore the farmer who must have money for his wheat is placed in the position that he must sell to the Pool. Is that so?—Yes. I think probably it was thought, in the framing of these sections, that they would be protecting the farmer against himself.

6411. But that is the position as it stands?—Yes. I think the farmer is practically obliged to sell to the Pool. There is no other outlet for his wheat.

(The witness retired.)

The Commission adjourned.