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Tuesday, 14 September 1937

Mr FROST (Franklin) (12:20 PM) . - I am disgusted that the Government assistance to this important industry is less this year than was given last season. Last year the growers received a bounty of 4Jd. a bushel ease; this year the bounty is to be only 2$d. I am quite at a loss to understand the reason for this reduction, because the growers are to-day in a much worse position than they were last season. In recent years, nearly every other form of primary production has enjoyed payable prices in overseas markets. This year, unfortunately, the London prices for apples and pears have declined seriously. The Government is spending a huge sum of money for defence purposes. It has also brought forward proposals for heavy expenditure in other .directions, and notwithstanding the buoyancy of the revenue, it has reduced the bounty on apples and pears to such an extent as to cripple one of the best Australian industries. The Assistant Minister for Commerce (Mr. Thorby) has told us that the growers have benefited through a reduction of freight charges. The present freight is 3s. 6d. a case, but apple and pear growers alone among primary producers are penalized to an amount of 7 1/2d. a case on account of exchange. When the management of the Conference Line steamers agreed to reduce the freight to 3s. 6d. a case, it demanded payment at this end, because of the supposed risk in carrying perishable products. The Assistant Minister has said, that as the result of recent negotiations, there will be a further freightreduction of 3d. in the 1938 export season, making a total rebate of approximately 6d. a case in Australian currency. I do not know how he arrives at that figure, because the previous reductions were 2d. and 3d., making only 5d.

Mr Thorby - The reduction is expressed in sterling.

Mr FROST - As I have explained, the growers pay the freight at this end, so the exchange charges will add further to their costs The apple and pear growing industry employs more labour than any other. It also pays higher prices for the fertilizersrequired, and for timber. There has been an increase of the price for wrapping paper which is now over 4s. a ream, as compared with ls. 9d. a ream last year. Pine cases, which last year cost 9d. are now about ls. 3d. All charges in connexion with the growing and shipping of apples and pears are increasing, but unfortunately the grower is not getting higher prices in the overseas market.

The official figures show that this season 1,134,933 cases, or about 41 per cent, of the fruit, was sold f.o.b. at an estimated price of 4s. ll£d. a case, and 1,690,761 cases, or 60 per cent., were sold on consignment at approximately 3s. a. case. As" the cost of production is, roughly, 5s. a case, the growers suffered a substantial loss on all fruit sold on consignment. Furthermore it is not possible for growers to sell more than a specified quota f.o.b. For example, if a grower had 10,000 cases he would be fortunate if he could secure shipping space for 5,000 cases under the quota system. The Government should endeavour to meet the growers by making the bounty this year at least equal to the amount paid last season. There 19 usually a good market in the United Kingdom for apples and pears, but this year it collapsed. Growers were told that the unfavorable turn of the market was due to the fact that shipments made early in March were over 70 days in transit - one steamer actually took 74 days. Some shipments made at the beginning of April arrived in London before the fruit which had been shipped a month earlier. As the Government has given the Conference Line steamers a monopoly of the refrigerated space for small cargoes, the growers are in the hands of the shipping companies and have to ship their fruit when vessels are offering.

The Assistant Minister may say that the growers could have refused to use those vessels, but the trouble is that, if they do not avail themselves of certain vessels, they are left short of space, as there has not been a sufficient number of vessels calling at Tasmanian ports in the last few years. Owing to the slow speed of some of the steamers the early varieties of fruit were placed on the market after the late varieties had- arrived, and this is one of the causes of the collapse of the market. This year, the growers had a number of good f.o.b. orders from the continent of Europe; but, owing to the impossibility of obtaining sufficient refrigerated space, these orders could not be met. Prior to the Great War, the growers shipped about 1/500,000 bushels of fruit to Germany, and they hope soon to recover that market. France took a considerable quantity of fruit last year.

A limited quantity has been asked foi by Czechoslovakia and other countries, and probably these will increase their orders in the near future; but the majority of the growers will be bankrupt if the Government does not come to their assistance. At least the same bounty as was paid last year should be made available.

Question resolved in the affirmative.

Bill read a second time, and passed through its remaining stages without amendment or debate.

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