WOOL DISPOSAL.

Taranaki Daily News, 13 May 1921, Page 5

WOOL DISPOSAL.

“BAWRA” SCHEME DECLINED. DECISION OF PRODUCERS' COMMITTEE. WOOL SALES TO BE RESUMED. (From Our Own Correspondent.) Wellington, May 11. The producers’ standing committee met in Wellington to-day and had before it a report from Mr. A. E. Mabin on the proposal that New Zealand producers should associate themselves with the British-Australian Wool Realisation Association in the disposal of wool. Mr. G. L. Marshall was in the chair. The report covered the discussions that had taken place between Mr. Mabin, as representing the New Zealand producers, and the Australian directors of the association. The chief points in the report received from Mr. Mabin were as follows: (1) The British-Australian Wool Realisation Association holds the following old season’s wool for sale:— Bales. B.A.W.R.A. wool 850,000 Imperial Government wool ... 850,000 Imperial Government New Zealand wool 800,000 Imperial Government, South Africa and Falkland Islands wool 200,000 Total 2,700,000 •‘Bawra” proposes to offer this wool for sale by auction in the proportion of one bale of old wool for each two bales of the-new clip submitted by auction. The original proposal of bale for bale has been modified. (2) “Bawra” has fixed the reserves for this wool at flat rates of 9d per pound for greasy merino and 5d for greasy crossbred. Australian woolbrokers and wool-gowers have agreed not to sell the new clip at prices under these reserves, and the Commonwealth Government has agreed to prohibit export of wool except through channels which undertake to respect this agreement. “Rawra” asks that New Zealand wool-growers shall also agree to be bound by legislative action to keep the same reserves for a fixed period of years. (8) “Bawra” also proposes that all wool of the New Zealand 1920-21 clip not sold at the end of the season, estimated at 200.000 bales, shall be handed over to the association for sale on commission.

(4) The Commonwealth Prime Minister intends to ask the British Government to hold their accumulated stocks of wool off the market for two years. (5) Three courses are open to New Zealand wool-growers: —

(a) To pursue an independent policy in all respects; (b) to join forces with “Bawra’’ in regard to fixation of quantities of wool to be offered for sale and in regard to price limits; (c) to join forces with “Bawra” in its endeavor to control the sale prices of all wool grown in the Empire, except British, by being bound by the fixation of quantities and the price limits during the wool season, and by handing over to “Bawra” fox* sale on commission at the end of each season for five years all wool then unsold.

Proposals (a) and (b) would require strict agreements between bankers and brokers and also legislative action to be satisfactory to “Bawra.” The producers’ committee considered the report at length and adopted the following resolution: “That after full consideration of the proposals submitted by the Bri-tish-Australian Wool Realisation Association through Mr. Mabin, this committee is of opinion that the interests of the New Zealand producers demand the retention of a self-reliant scheme, whereby, while co-operating with the association as regards the fixation of minimum reserves and the limitation of offerings, the full control of all matters concerning the handling of the wool clip must be retained in New Zealand.”

This resolution means that the New Zealand woolbrokers and wool-growers will not hand over the control of New Zealand wool to the association. They will be prepared, on the.other hand, to co-operate with the association in regard to reserves and offerings. The extent and the method of co-operation will be matters for negotiation. The producers committee further resolved that woolbrokers should be authorised to make for the resumption of wool sales in New Zealand as soon as was convenient.