asked the Minister for Supplies if he will state the basis on which subsidies to wheat millers were made previous to August of this year, and on what basis similar subsidies are now being made.

The subsidy payable on wheaten meal is based on the miller's selling price fixed from time to time for that commodity. Prior to 1st April last the maximum selling price was fixed at 49/9½ per sack of 280 lbs. (f.o.r.). The corresponding figure for the period, 1st April to the 13th September inclusive, was 52/6, which was increased to 60/- on the 14th September. The subsidy necessary to enable millers to sell wheaten meal at these prices is determined by the examination of the trading accounts of representative wheaten meal millers, but subsidy is not paid to any miller who charges a price in excess of the fixed price.

Were they fixed in relation to the amount of imported wheat that was being milled by each of those mills?

No.

Was there not any regard to the amount of imported wheat?

There was, certainly. The subsidy is fixed in relation to the known cost of producing it and the fixed selling price.

I know, but the important thing is this: was the Minister aware of the amount, whether it was small or large, of foreign wheat ground by certain of the mills in this country before he fixed the subsidy?

Certainly.

How did the Minister acquire that information?

All the foreign wheat in the country is distributed under my direction.

Will the Minister say when he refers to "known cost" is that the average cost, or is it the individual cost to the miller?

It is the cost as ascertained from the accounts of a number of representative millers.