WOOL PURCHASE

Wairarapa Times-Age, 16 October 1939, Page 7

WOOL PURCHASE

STATEMENT BY MINISTER OF MARKETING PRICE ABOVE THAT OF LAST YEAR. MANY DETAILS STILL TO BE ARRANGED. (By Telegraph—Press Association.) WELLINGTON. This Day. Commenting on the announcement made on Saturday that Britain has agreed to purchase the New Zealand wool clip for the period of the war and for one year thereafter, at a price of 9.8 d sterling equivalent to 12',d in New Zealand currency, the Minister of Marketing (Mr Nash) said the negotiations had necessarily been lengthy. The Government's endeavour had been to procure a price that would ensure a reasonable return to all New Zealand’s wool producers. The price was well above last year's realisations, and com pared favourably with the Australian price of 10.75 d sterling for the Austra ■ lian clip. "There are still many details to be arranged between the Governments concerned as to brokers' and other charges, and it is impossible at this stage to estimate the probable return from profits on sales outside the United Kingdom,” Mr Nash added. “The Government has been in frequent conference with • representatives of wool brokers and buyers with the object of making all necessary arrangements for the handling and appraisement of the wool as soon as deliveries are made to stores." Mr Nash stated that the final arrangements in this connection would be announced later. The Marketing Department, he said, was charged with the responsibility of carrying out all the necessary work in connection with shipping and payments and the staff was now being organised to fulfil these functions efficiently and without delay. NET OR GROSS PRICE? Leading authorities in the wool trade, when questioned regarding the wool-purchase scheme, said it was not known whether the price to be paid by the British Government, equivalent te 12jd a lb in New Zealand currency, was net to the grower or whether it in - cluded warehouse and brokers’ charges. It was pointed out that though the arrangement covered only one buyer—the British Government, just as much work was involved in receiving storing and appraising the wool as in the case of normal wool sales. The average prices per lb of the wool sold in New Zealand during the last five seasons are as follow: — 1938-39 9.189 d. 1937-38 10.043 d. 1936-37 15.82 d 1935-36 9.144 d. 1934-35 6.498 d. MR MULHOLLAND’S VIEW. Provided that price's for lamb and mutton were satisfactory he thought the wool price announced, said the president of the New Zealand Farmers Union, Mr W. W. Mulholland, in an interview by telephone from his home at Darfield, Canterbury, last night. As he understood it, 12,{d would be the average price over the whole ol the New Zealand clip, but the range would be according to quality. It had to be kept in mind that no margin was apparently being 'allowed for possible rising costs and if these did increase then the wool price migh. not be satisfactory. The actual price paid for each lot would be appraised on the quality ano condition of the w’ool so that it was as important as ever for farmers to give careful attention to the skirting classing and general get-up of their clips Any slackness in these respects would result in depreciation of the price paid. ' AUSTRALIAN PRICE REGARDED AS FAIR & REASONABLE. ADDITION OF £12,000.000 TO WOOL CHEQUE. By Telegraph—Press Association— Copyright SYDNEY, October 15. Confirming the completion of nego- ’ tiations for the acquisition of the Aus tralian wool clip, the Prime Minister Mr Menzies, said the basis agreed upon by the British Government assured tc Australia an advance of more than 3c a lb, compared with the average o last year, representing an aggrega e increase in the Australian wool cheque of £12,000,000. In other words wool growers would receive 13.4 d a lb. Atu tralian currency, compared with !• 3 8d Australian currency, last year. Mr Menzies added that the position of neutral countries had been under sympathetic consideration, and he expected that arrangements would be made to enable normal trade to be carried on. , Representatives of the woolgrowei,expressed the opinion that the price Britain was paying was in all in circumstances, fair and reasonable and indeed as much as they had expected. ESTIMATED RETURN. TOTAL FOR CURRENT SEASON. (Received This Day. 10.40 a.m.) SYDNEY, This Day. The wool return to Australia for the current season's clip will be abou' £54 000 000. compared with £42.500.00 last year. According to a Central Woo 1 Committee statement, more than a mil lion bales of the current clip arc al ready on the seaboard.