DOMINION CLIP

Gisborne Herald, Volume LXVI, Issue 20079, 27 October 1939, Page 6

DOMINION CLIP

PURCHASE PLAN QUERIES BY GROWERS CHARGES INVOLVED NEGOTIATIONS CONTINUE SURVEY BY MINISTER (Per .Press Association.) WELLINGTON, this day. Questions addressed to him concerning aspects of the purchase by the United Kingdom Government of New Zealand’s wool were replied, to last evening by the Minister of Marketing, the Hon. W. Nash, in a broadcast address. The questions covered a wide range.

“Negotiations are now proceeding with the United Kingdom Government to determine the amount and types of wool it is desired we should scour before shipment," the Minister said in reply to one inquiry. “Growers in the meantime should not submit wool for scouring on their own account.

“The answer is that it will go to the wool grower,” he continued, in answering questions as to who would receive the Dominion's half share of profits made by the United Kingdom Government on any sale of Now Zealand wool to other countries.

“All reclassing, trimming and pooling in the broker’s stores will be carried out by the brokers as in the past at the wool grower’s expense,” Mr. Nash said in answering another correspondent. He explained also that it would not be necessary to rebale at the grower's expense wool which had been incorrectly branded, but growers were requested to sew a fresh cap over the brand if thev had caps available. Appraisement Ports The Minister said also that the appraisement -ports had not been finally decided, though it was hoped lo determine them to-day after consultation with the shipowners. A statement in this connection would be made available either to-day or on Saturday.

During his broadcast address on Wednesday evening the Minister said that endeavours were being made to reach an arrangement with the United Kingdom in regard to various charges and lie hoped an agreement would soon be reached.

Mr. Nash outlined various stages in the negotiations, commencing with discussions he had when in London in July. The price first suggested was the average for the year ended June 30, 1939. New Zealand was not satisfied, because the farmer had received 9.17 d. and on the evidence of Government officers that was below the cost of production. He had then called a meeting, at which those present included the Minister of Agriculture,, the Hon. W. Lee Martin, the president of the Shipowners’ Federation. Mr. I-I. D. Acland, the -president of the Farmers’ Union, Mr. W. W. .Mulholland, the chairman of the Meat Board, Mr. T. A. Duncan, Six Alexander Roberts, representatives of Wright, Stephenson and Company, Limited, and the Wool Brokers’ Association, and the president of tile Wool Council, Mr. H. M. Christie.

Sub-Committee View A sub-committee had been set up and it reported that it considered the price for crossbreds should be Is per tb. in grease delivered into the broker's stores, net to the grower, store and f.o.b. charges extra. In a cablegram to the Secretary of State for the Dominions on September 20, the New Zealand Government had suggested that the method ot payment should be on an f.o.b. basis or prior (o f.o.b. after a stated period in store awaiting shipment. This was important in New Zealand, since during the war period her overseas exchange other than sterling would be almost negligible.

The New Zealand producer and he New Zealand Government did not wish to take any advantage because of war conditions.' If the British Government privately resold any product purchased from the New Zealand Government the profit made should be divided equally between the two Governments, the British Government to. be responsible for freight and shipping and marine insurance. Peace-time Adjustment It was further proposed that after the cessation of hostilities a conference should decide what adjustments were necessary to bring the trade to a peacetime basis. Prices.were to be fixed on a yearly basis,"but 'adjustable within this period if the index of export prices in the United Kingdom rose by 10 per cent or more. This was important to New Zealand, since this country would depend on sterling funds to purchase imports, which possibly might rapidly increase in price.

The New Zealand Government advised on October 12 that it was prepared to accept an overall average of 12Id per. lb. for all greasy wool, this price to be net to the producers for all wool delivered fit brokers’ warehouses, the New Zealand Government to receive in addition half the profits on all sales made outside the United Kingdom. This meant that brokers' charges, appraisal, delivery from brokers' warehouses to f.0.b., and the marketing, invoicing and accountancy costs of the New Zealand Government Marketing Department should be additional to the 12.25 d price. These additional charges should be settled at the earliest possible date. The price, the cablegram added, should be subject to .revision on request in May of each year. It was imperative that the arrangement for clearing stocks after the conclusion of hostilities be completed before the procedure for purchasing termin•\ted.

High Commissioner’s Inquiry

That morning, said Mr. Nash, a cablegram had been received by the Prime Minister’s Department from the High Commissioner in London, Mr. W. J. Jordan, stating: “To enable .he position to be clarified regarding expenses over the agreed purchase price payable by the United Kingdom Government, please advise in as much detail as possible what New Zealand considers should be included, par..lcutarly under the heading of brokers’ charges. The Ministry of Supply contends that charges normally to sellers cover all up to and receiving into warehouse, where the wool is normally shown for appraisement -and sellers’ appraisement charges.

“They find it difficult so far to define other extra charges beyond buyers' appraisement charges and warehouse after a free period of one nonth. We will press to the utmost for all justifiable extras to be borne bv the United Kingdom Government, but your details and the strongest case arc required in support.”