COTTON INDUSTRY LANGUISHING IN AUSTRALIA

Grey River Argus, 7 August 1948, Page 8

COTTON INDUSTRY LANGUISHING IN AUSTRALIA

BRISBANE, August 4 Because of the low price fixed by the Commonwealth Government, the Queensland cotton-growing industry is in danger of extinction. Cotton farmers want 25d a lb., for raw cotton; the Commonwealth fixed price is only 17d; and world parity price for cotton is 30d a lb. The Australian Government, in an endeavour to keep down the price of cotton piece-goods, as far back as 1942 fixed the price to be paid to cotton growers at 17d a lb., and this price has not altered. An official of the Queensland Cotton Board said that in consequence Queensland cotton production had dropped from 18,000 bales -a year to 1,500, whereas Australia needs at least 100,000 bales. Cotton farmers, finding the Government prices unprofitable had in many cases abandoned cotton growing for dairying and other primary industries which give a much better return to the producer. If growers were given an equitable price, it was likely that cotton production would become one of Australia’s main industries. With the granting of a fair price, irrigation farming methods and new advanced harvesting machinery would combine to make cotton production an immense success in Australia. The Premier of Queensland (Mr Hanlon) said recently that he had made strong representations to the Commonwealth Government for a higher price for the growers, but the only reply received was that the matter was still under consideration.

The cotton industry from the point of view of the retailer of the finished article is also in a difficult position. In the case of unfinished goods there is the dollar difficulty and the high price of cotton material from England. Mr T. J, Weedman (President of the United Pvetailers' Institute of Brisbane), who has just returned from a four-months’ buying trip to England, said that the present high prices were occasioning importers much anxiety. He added that manufacturers in England were in a difficult spot, not only because of the shortage of skilled labour, but because of having to 1 buy raw cotton through Government channels.

Mr Weedman said that the price for Egyptian cotton had risen from 22d to 46d a lb.