‘NOT CATASTROPHE’

Gisborne Herald, Volume LXXIV, Issue 22341, 28 May 1947, Page 6

‘NOT CATASTROPHE’

U.S. WOOL BILL N.Z. BOARD COMMENT “NOT VERY SERIOUS" 1 "I wouid not anticipate any efTpet of a verv serious nature on the New Zealand wool market if the United States Wool Bill bi.antes law,” said the chairman of ihe New Zealand Wool Board Mr. N. R. Jameson, of Ongaonga, Hawke’s Bay, in a statement. "Although live United States is an important market tor wool it is not the oniv one.” Mr. Jameson said. "The Continent is now in the market to a greater degree and it is expected that this demand will expand quickly. Japan is another important wool-con-suming country in prospect. There is a world shortage of wool and good clearances ol stock piles are being made.” America's Needs Mr. Jameson did not agree with the belief expressed ov representatives of tiie industry m Auckland that if the import l'ec was imposed the United States would cease to operate loi 1 foreign wool. He said she would have to remain in the market in some degree. as her domestic production of about 330,000.0001 b a year was well below her pre-war output of about 500.000.0001 u and her annual consumption of about I.UUO.OUO.OOOIb. The imposition of a 50 per cent, import fee would probably have a considerable effect to the extent that it would lower the price she could afioid lo pnv for her wool, but any suggestion of a world glut or a slump in prices resulting was considered Ov Mr. Jameson to be unwarranted. Ollier Competitors The United States, lie added, had been operating at icurly high prices, and. wnile a reduction ol her competition would probably lower me average price received by producers, lie did not think that this would alfcct die price which other countries were prepared to pay. England, for instance, was operating on a rather conservative basis. The United Stales was interested mainly in the finer types of wool and Australia was. therefore, primarily concerned, said Mr. Jameson. However, New Zealand growers were disturbed at the principle of the proposed legislation. The seriousness of it lay in the fact that anvthing curtailing consumption would finally react to the detriment of all wool-producing- countries. However, it was early to attempt to predict the effect of this particular measure, but it would certainly net constitute a catastrophe to the Dominion industry