No Benefits Accrue From New Legislation

Hawke's Bay Herald-Tribune, Volume 81, Issue 67, 11 December 1937, Page 16

No Benefits Accrue From New Legislation

EFFECT ON THE BUYERS Quite recently Parliament passed an Act Iiaving the effect of abolishing the draft allowance on wool which has been in operation for, it is stated, more than four hundred years. The necessity for the allowanc having long since passed, noone. except perhaps some of the overseas buyers, objects to its removal, but what can be and sliould be objected to is the attempt of the Government to malce political capital out of it. The Minister of Agriculture attempted ito "pull the wool" over the sheepfarrners' eyes by broadcasting and by publishiiig' in the newspapers a statement to the effect that, had the allowance been abolished prior to the commencement of the series of New Zealand wool saies it Avould have meant an additional £130,000. (approx.) in the pocket of the growers, his argument being that, as the allowance is only 1 per cent. (i.e. 1 1b. in every 100 lbs. gross weight of wool) it represents such a small fraction of a penny per pound as to be unquotable and would therefore be disregarded by the buyers in calculating their costs. Let us examine the position and we find that —

Per lb. Per lb. Per 360 Per 30fl0 Per 5000 lb. B/-. B/s. B/s When wool is selling at 18d.the 1 p.c. draft j.1® /;•/,••*: : lsd or 5/4-s £270 £1,350 At 15(1 the 1 p.c. is •••• .15d or 4/6. £025 4-1 At 12a the 1 p.e. is 12d or 3/7.2 £180 £900 At 10d the 1 p.c. is lOd or 3/-. £150 £750 At Drl the 1 p.c. is 09d or 2/8.4 £135 £675 At 8d the 1 p.e. is OSd or 2/4.8 £120 £600 At 7d the 1 p.c. is .... .07d or 2/1.2 £105 £525 At. fid the 1 p.c. ie .06d or 1/9.6 £90 £450