ACTION IN UNITED KINGDOM

Chronicle (Levin), 18 April 1946, Page 5

ACTION IN UNITED KINGDOM

i (Speckil ('orresnondetit.)

Received Wednesdav, 7 p.m-. LONDON, April 16. The pfospeetive auction selling of Dominioh wool inCfins that a certain frcedoni is to be given to wbol values within the framevvofk of overall rfegulated marketing of clips but steps are being taken in Britain to enSuie that a strict control is exercised over avooi and wool products sold for final consumption iuside Britain. It is officially announced liere that it is a prime requiroment of the Governineiit tliat the modification of control shall npt result in price increases and licences to deal in avooI are to be granted only on condition that the price regulation requii-e-ments are strictly observed. British lirnis, therefore, have been adA.'ised that, for the purposes of the British homfe trade, all avooI whether bought overseas or otherwise, and tops, etc., made therefrom, if bouglit at present ilxed prices, must be sold at the comparable Jixed prices now ruling here whether the goods Avere delivered now or in iater months. This ineans that firms buj'ing wool at the durreht fixed prices may not liold it in the hope of selling it or its products at a better price. If bought at today 's fixed prices it must be sold on a comparable basis whether .sold now or soinetiilie in the future. This annoimcemeiit is,; eleai%V$,esigned to. 'discoui-tLgieJ^iliO' JibMi-fig'jbf, . stock in anticipatio'n of possible higher . prices when open market conditions for wool are resumed.

j It is also annouticed that the Centrfil ' Price Regiilation Committee will in due cc.-urse make regulations regarding sel- ) liiig prices of avooI. "bought for the home trade, and products therefrom. The Price Regulation Committee which is a statutory body, already eoiltrols prices Avhereat avooI yams and eloth may be ! sold on the British home market and is presumably to deterinine the rnargiris whereat avooI bought in the colfiing open market may be sold for internal eonsumpticfn. Xrew Zealand aaroolgrowers may rest assured any . action by this committee would not be expected to aifect open competition. The committee is concernbd chiefly with the regulation of profits and it is expected in trade eircles that any action taken by this authority would leave the British industry free to follow Dominion avooI a-alues as established in auction. But Avhen firms had bought their wool, tlie coffiinittee Avould definb the.profit at which such wool could be turned over AAdieri sold to the United Kingdom home market for final consumption in Britain.