WOOL PRICES

Bay of Plenty Beacon, Volume 4, Issue 173, 29 October 1941, Page 5

WOOL PRICES

FARMERS SEEK INCREASE TO MEET RISING COSTS The Auckland Branch of the New Zealand Farmers' Union recently approached the Government in terms of the following resolution: "To the extent that re-sales of New Zealand wool to neutral countries show a profit to the Imperial Gov ernment, prices of wool in New Zealand should be revised in terms of the Commandeer, which provides that prices shall be subject to revision upwards when average prices of imports from Britain show an increase of over 10 per cent." To this the Minister of Marketing, the Hon. J. G. Barclay, replied: "It would not be possible to give effect to this, as the New Zealand Government has no knowledge of what profits, if any. are being made on the re-sale of wool outside the United Kingdom. "In regard to the 10 per cent increase in the average price of imports from the United Kingdom, I regret that although at the initiation of negotiations with the United Kingdom Government a proposition was pressed upon them, that if import prices from the United Kingdom rose 10 per cent or over, then purchase prices of New Zealand products should be varied, this was never agreed to by the United Kingdom Government. "Under the circumstances it is not possible for the Government to increase wool prices now being paid, which are approximately 30 per cent above the 1938-39 average prices." Dealing with the question at the last Executive meeting Mr J. Soler said the Minister's reply disclosed a very serious position. The Minister of Finance, the Hon. Mr Nash, had

told the farmers at the time the agreement was drafted that provision was being made for an automatic rise in the wool purchase price when import prices rose, and this was the first intimation —made two rears after the event —that this provision was not in the agreement that had actually been signed. Meanwhile the wholesale price of wool in Britain had gone up 40 per cent. This meant that £3,000,000 was lost annually to New Zealand woolgrowers. Were they to stand for this without protest, knowing that the toss would continue with costs still rising? The farmers had been told definitely that they would be protected against losses due to rising costs; now they were being left unprotected. It was a clear case of misrepresentation. The chairman, Mr J. H. Fttrniss, referring to the Minister's statement comparing the wool purchase price with values ruling in 1938, said that general costs in 1938 should also be taken into consideration. After further discussion it was decided to draft a resolution covering the Executive's views, to he forwarded to the Dominion Executive of the Union for appropriate action.