DISTRIBUTION OF EXTRA WOOL MONEY

Dominion, Volume 36, Issue 107, 30 January 1943, Page 4

DISTRIBUTION OF EXTRA WOOL MONEY

Part Cash, Part Government Stock DECISION ON THIS SEASON’S EXPORT CLIP

The decision of the Government on the question of the distribution of the extra 15 per cent, paid by the United Kingdom Government for New Zealand wool xvas announced last evening by the Prime Minister, Mr. Fraser. It is as follows:—

(1) That payment in full of the additional 15 per cent, payable by the United Kingdom Government on this season’s export greasy wool clip would be made to growers, paid partly in cash and partly in nontransferable Government stock, but the additional 15 per cent, would not be paid to growers on the wool which would be used in New Zealand.

(2) In accordance with this decision the position will be as follows: (a) Greasy wool appraisals this season have been made on the basis of 194142 prices plus 15 per cent, and from these new values 10 per cent, is being retained.

(b) The 10 per cent, retained will be disposed of as follows: — (i) An amount estimated at 1 per cent, required to cover the difference between appraisal values and prices charged for wool sold in New Zealand for local use.

(ii) 5 per cent, will be paid to growers in non-transferable Government stock.

(iii) The balance estimated at approximately 4 per cent, will be paid to growers in cash at the end of the season.

(3) Stating the decision in terms of 15 per cent, addition to last season’s greasy wool prices the position of the grower in respect of the 1942-43 season’s greasy wool clip will be as follows: —(i) On appraisal he is now receiving on average an increase of 34 per cent; (ii) he will receive in non-transferable Government stock 5.744 per cent.; (iii) at the end of the 1942-43 season he will receive in cash an estimated amount of 4.556 per cent. The total of these increases in cash and bonds is 13.8 per cent., leaving an estimated amount of 1.2 per cent, for local wool. (4) The Government agrees that in cases of hardship the amount of inscribed stock would be replaced by cash or transferable bonds. The Government . also agrees that the stock will be available for death duty purposes. Representatives of the Sheepowners

Federation and the Farmers’ Union met the Stabilization Commission on Wednesday for the purpose of discussing wool prices with particular reference to the 15 per cent, addition on tlie, price, of greasy wool agreed to by the United King-dom-Government. On Thursday they waited on the Prime Minister and plaeed their views on the subiect before , him. In announcing the Government’s decision. Mr. Fraser expressed his appreciation of the helpful manner and good spirit in which the discussion was carried on, in spite of the fact that there were strong differences of opinion expressed, some of which could not be reconciled. Mr. Fraser said that at the present time the Government had put into operation a scheme of stabilization of wages, salaries and retail costs on the one hand, and producers’ prices and major costs on the other. Under this scheme the woolgrowers would receive substantial benefits. “First, there is an undertaking that their major items of cost will be neld at existin"- levels despite the fact .that many of the imported articles, are rising steeply in price,” said the Prime Minister. “Secondly, there is an undertaking that if there is any further general rise in wages there will be an appropriate increase in the prices of primary products including wool. Furthermore, while the stabilization scheme remains in existence woolgrowers will be protected from any fall in overseas prices. This will have the effect under stabilization of placing woolgrowers on the same footing as other sections of the community.’’ Mr. Fraser added that this arrangement provided for the disposal of this year’s clip only, and the matter next year would have to be dealt with in full harmoriy with economic stabilization conditions.