PRICE OF WOOL

Dominion, Volume 35, Issue 261, 3 August 1942, Page 2

PRICE OF WOOL

Figure Considered Very Reasonable “An announcement recently made of an increase of 15 per cent, to be paid by the British Government for the 1942-43 wool clip, in order to meet increased costs of production, will have been received with gratitude by large numbers of sheep-farmers/ particularly in the hill country, where conditions have been extremely difficult for some years past,” stated the report of the New Zealand Sheepowners’ Federation presented at the annual meeting of the federation in Wellington. “The increase iu wool price to New Zealand is in accordance with a clause ■in the commandeer contract for wool purchase between the British Government and the South African, Australian and New Zealand Governments. This clause sets out clearly that any variation in terms of payment for wool, shall apply in equal proportion to each of the three empire wool-growing dominions. Various suggestions have been made with respect to the method of paying over to the growers the increased price granted by Great Britain, but woolgrowers generally will no doubt expect payment from the buyer under the contract to be made to them in full. , “The British Government has recently advanced the price of homegrown wool in Great Britain by. 2d. per lb., and. in view bf the keen demand for the class of wool grown in New Zealand, it would appear that even with the addition of the 15 per cent, recently granted, our wool clip is being supplied to Britain at a very reasonable figure. Twenty-seven years ago Britain paid 15,d. in sterling for the New Zealand clip under the commandeer. While the increased price now .suggested for the 1942-43 clip will only mean approximately lid. per lb. iu sterling; taking into account the increased costs of production today as compared with even 25 years ago, it must surely be conceded that there is no question of exploitation with regard to the price to be paid for our next season’s clip. “The appraisements with respect to last season’s clip, were carried through satisfactorily and woolgrowers should have no cause for complaint, as this admittedly difficult work was carried through with a minimum of delay. “The executive at the expressed wish of several branches, takes this opportunity of tendering its thanks to the Imperial Government for the grant bf the increase of 15 per cent, in the price of wool to cover increases in cost of production, in terms of the contract for purchase under the commandeer.”