NEW PLAN FOR SELLING OF WOOL CLIPS

Chronicle (Levin), 3 May 1946, Page 3

NEW PLAN FOR SELLING OF WOOL CLIPS

— Press Association

DETAILS OF OPERATION

By Telegravh-

WELLINGTON, May 2. . For tlie informution of wool growera and otliers, tlie Wool Disposal Coiuiiiissioix has issued the following explunatiou of selling proeedure and working of the reserve pricc and contributory charge under thp'wooJ disposal plan, as authorised in New Zealand by the Wool Disposal Act, 19-15. " It is 'proposed • tluit bulk purchase .t'rom the wool growers, of Now Zealand 's a'vooI eiip, will tenuiuuto on Juno oU, 1946 and thereafter growers will sull their own wool uuder the disposal plao, with the support of a reserve or "floor price" plaeed on the wool submitted by theni for sale ut auetion, The disposal plan will be adiuinistered by a Joi'ut Disposal Orgauisation which -will eom prise the four Governmcuts (Uiiitcl tviugdom, Auatralia, youth Al'rica and New Zealand) in partnership. • The rcla tivo priccs reaJised for diiferent types of wool at auetion, will rcfleot the valuutions of tlie xnarkot, but a geueral priee ievel of wool will be rnude eifeetive by tlie .Toinl Disposal Orgauisation which will prescribe niiuimuui reserve priccs at which it will be willing to take up auv ncw.clip wool unsohl at auetion. Tlie four Governnionts will each year agrce on the geueral level ot reserve prices to operate for the ensuing wool year, The Joint Disposal Orgauisation will a pply tluit geueral level of reserve prices to the various types of wool and valuers of Ihe New Zealand Wool Disposal Oonunission ( N'ew Zealand is a subsidiary or ageni of the JoLflt Disposals - Orgauisation i . will, by appraisement, apply type values to the various lots which will be sub uiittcd by Lhe individual growers for salc. These t\ pe values for cacii to1 will be the reserve price aftcr July 1. 11)16.

"It is propused flint- growers will offcr their wool at auetion, but saies may be niadc direct to inauufacturer.s or to wool doalers by growers who lind this proeedure couvenient. llowcver, it will iiot be possible for the Joint Dis posal Orgauisation to ensure that growers who dispose of their wool othervvi.se than at auetion, will reeeive the protectiou of reserve price in tenus of the disnosal nlnn operating.

; "The expenses of the Joint Disposal j Orgauisation in the selling and handling j of aecunuilated stoeks and wool boughri in at the reserve price, will be borne | equally between the growers and the ! Joint Disposal Orgauisation itsdf. The I growers' half-share will be found from i thq proceeds of a contributory charge ! on all saies of new elip wool. This j charge will be at a rato sutttcient to ( cover the growers' half-share of the ! opernting expenses and will be inclusive j of the levv or pavment made by the growers to the N'evv Zealand Wool Doard to cover its expenses in publicity, research, etc. Upou tlie termiuation of the disposal plan, the balancc (if any) of monevs reeeived as a contributory charge, will be applicd for the beuelii of the wool growing industry in sueh a mauner as niay be determined by the Minister of Marketing after cousultation with the Wool Board. The Orgau1 fsation's half-sliare of the operating ex- | penses will be met from the proceeds of the sale of wool bought-in when the ^;ale of wool by growers at auetion, is reconmienced. Growers, as in pre-war liines, will theniselves be responsible for Ihc-payuH'iit to brokers of the usuul selling charges. Aecordingly growers will reeeive the proceeds of the sale of their wool less Ihe brokers' selling charges and the contributory charge under the disposal plan whicli it is proposed should conimence from July 1, 1 £l 10. The auetion reserve price for each lot of growers' wool, will in eil'ect take Ihe placo of the price ut which the I'nited Kingdom Government soid to overseas buyers uuder the wartime plan. The price to l»c reeeived by the growers under tlie disposal plan (i.e. sale price less brokers' selling charges and Ihe contributory charge), will take tlie place of Ihe actua] price paid to growers uuder the wartime plan. Thus I he contributory charge under the disposal plan will take the place of the margin under the wartime plan, be ! ween Ihe price charged to overseas buvers and the price paid to the growers. The margin or diirecenee in each | cuse cov ers costs. The wartime margin j was sullicienl to cover costs and to j build up some reserve against the possi- 1 bilitv of future losses on the selling of; accumulalcd stocks. The niaiuteiiaucc I of present riTurns to the growers de- 1 pends on ihe luarket prices for wool,' tho oi'eration of tlu; reserve price, and | the exlent to which Ihesc prices can bc | mainlaiucd under the protection of tlie marketing plan. The suecess of the plan will depond not only on its securing ordcrly marketing but also on tlie progress it is able to ma ku in a gradual reducLion of aecunuilated stoeks."