Wool levy rise decision ‘will not be rushed’

Press, 30 June 1983, Page 3

Wool levy rise decision ‘will not be rushed’

Farm editor Wellington The Wool Board will not allow itself to be pushed into a quick decision on raising wool levies to reverse an announced decision to cut New Zealand’s contribution to the International Wool Secretariat, said the chairman of the board, Mr J. D. Mcllraith, yesterday. Mr Mcllraith said there was a division of opinion among wool growers on whether to increase the present 3 per cent promotion and research levy. Raising this levy has been suggested as one way to enable the board to reverse the decision it made in March to cut New Zealand’s contribution to the I.W.S. to sAust22 million in 1984-85, which is a reduction of 26 per cent on the contribution in 1983-84. Mr Mcllraith was addressing the annual conference of the Dominion meat and wool section of Federated Farmers in Wellington yesterday. The conference resolved to call on the Wool Board to prepare a detailed analysis and recommendations on the options available within the present level of promotion and research for the end use of New Zealand wool.

The board did present to the conference a paper outlining the implications of the reduced New Zealand contribution to I.W.S. for carpet and other coarse wool product promotion. Consumer institutional advertising of carpets in

major world markets — of the type undertaken recently in New Zealand using Dr David Bellamy — would be eliminated in 1984-85, the board said. All types of promotion in Western Europe would be halved and in North America, Asia, and developing countries reduced 20 to 30 per cent. Mr Mcllraith said the board was not ready to make growers a firm proposal to raise the wool levy. It was having discussions with the Government on minimum price funding levels and any funding levy changes that may be called for. Also the full implications of the reduced I.W.S. funding had only recently become available. He said there was a temptation to come to the meat and wool conference with a decision on a projected levy increase, though this would need Government approval for a change in the regulations. The board, however, would not make a hurried decision.