HIGHER WOOL PRICES

Bay of Plenty Beacon, Volume 4, Issue 162, 1 October 1941, Page 5

HIGHER WOOL PRICES

WILL FARMERS BENEFIT?

MINISTER SAYS UNLIKELY

MEANTIME

At the last Executive meeting ol the Auckland Farmers.' Union a letter was read from the Minister of Marketing, the Hon. J. G. Barclay, in regard to the Union's query as to whether any re-sale of New Zealand wool by the British Government had been made at a profit, and whetliei any allowance had been made in the new wool prices for the increase in the export price index of Greal Britain.

In his reply the Minister said, "Certain quantities of wool have been sold to countries outside the Untcd Kingdom wool control, but while the sale prices appear to liav& shown a margin over the purchase prices, the New Zealand Government has 110 knowledge of the expenses incurred, and consequently the extent of the net profit on such sales.

"There is provision in the Wool Purchase agreement with the United Kingdom Government for the net profits under the agreement to be shared equally with New Zeaalnd after all wool purchased has been disposed of.

"The agreement is for the period of the Avar and one year after, and it is not considered that any increase in price is likely meantime. The Government has no information •if the increased prices being paid to British AvoolgroAvers, but it considers that these could hardly be an argument for asking for increased Xirices for Ncav Zealand avool, Avhich is so far distant from the point of consumption."

In the discussion that ensued members expressed dissatisfaction Avith the Minister's attitude. Mr Soler said it Avas unfair that Avliile farmers costs; had gone up .30 per cent they should be debarred l'rom receiving some benefit from the increased of their product. Another speaker thought they could hardly ask the British Government to offset increased costs attributable to the N'ew Zealand Government.

Prices paid to the British woolgrower had been increased, it was stated, buy about 5d to 6d per pound. Fine Australian avool, scoured, had been selling in America for 102 cents, including duty, which is about Gs, and works out at about 3/2 greasy.

It Avas mentioned that the British index showed a rise of 40 per cent, and that in Australia, Avhich Avas working under a similar agreement with Britain, adjustments, favourable to the farmer had been made —increases of 8 per cent and 1 per cent having been granted in seiasons.

The following resolution moved by Mr Briscoe Moore was carried: "To the extent that re-sales of New Zealand wool to neutral countries, show a profit to the Imperial Government, prices of wool should be revised in terms of the commandeer, which provides that prices shall be subject to revision upward when average prices of imports from Britain show an increase of over 10 per cent."