WOOL COMMANDEER

Gisborne Herald, Volume LXVI, Issue 20075, 23 October 1939, Page 6

WOOL COMMANDEER

RETURN TO GROWER AUSTRALIAN POSITION QUOTED PRICE IN STORE Australian newspapers received by to-day’s mail indicate that the price at which the British Government has agreed to purchase the Australian and New Zealand wool crop will be the return to the growers on an in-store basis. Insofar as Australia is concerned, it is explained that approximately Jd. a pound will be added to the price to cover costs to f.o.b.

Reports state that the Australian price is generally considered satisfactory by the producers, under present conditions; although they fear that the small margin of profit it provides may disappear under unfavourable circumstances. Details of the agreement are:— Each of the Dominions will share equally with Britain any profit made in resales outside the United Kingdom.

In Australia, approximately §d. a lb. will be added to the price of 13.4375 d. to cover costs from store to shipboard.

Ninety per cent of the appraised price for wool will be paid to growers within 14 days of appraisement, and the additional 10 per cent, will be paid after the close of the season.

Manufacturers’ Requirements

Australian woollen manufacturers will be permitted to select ,and purchase their full requirements from wool appraised, for use in goods for local consumption. The Governments are still discussing some of the details of the agreement. i

It is suggested in Bradford that, in view of the comparatively lov/ price, the agreement may include some provision for increases in price in ceMf.n contingencies. *

Under the arrangements made, all j wool will have to be submitted for appraisement, including wools derived x from sheepskins, whether scoured, slips or shorn, but wool derived from sheepskins will not participate in any surplus over and above the appraised price

Australian woollen manufacturers will pay appraised prices and delivery charges and. as a condition of authorisation to select wool, ]d. a lb to cover costs and contingencies. One obvious contingency which this charge will cover is the possibility that a disparity will ultimately be disclosed between the United Kingdom purchase price and the total prices under appraisement.

In the case of the carbonising, scouring and combing sections of the industry, representations have been made to the British Government that sufficient wool shall be made available to keep works which were operating in Australia before September 1, 1939, employed under approved regulations.

It is expected that arrangements will be made to enable trade to be carried on as far as possible with neutral countries.