WOOL PRICE INCREASE

Wairarapa Times-Age, 15 January 1943, Page 3

WOOL PRICE INCREASE

FARMERS’ UNION PROTEST REPLY BY PRIME MINISTER. IMPROPER ACTION DENIED. (By Telegraph—Press Association.) WELLINGTON, This Day. A denial that the Minister of Marketing, Mr Barclay, had acted improperly or unconstitutionally in making public a recommendation of the Stabilisation Committee to the War Cabinet regarding the distribution of the increased price of 15 per cent for wool granted by the United Kingdom was given yesterday by the Prime Minister, Mr Fraser. It was contained in a letter by Mr Fraser in reply to one from the president, of the New Zealand Farmers’ Union, Mr W. W. Mulholland, protesting at the action of the Minister in disclosing the recommendation at a meeting in Oamaru. The text of Mr Fraser’s letter to Mr Mulholland is as follows: — “In reply to your letter of January 13 I would like to take the opportunity to remove any misapprehension which may have arisen with regard to the position of the Stabilisation Committee’s suggestion concerning the way in which the 15 per cent increase in the price of wool should be distributed. “It is not correct to say that the Minister of Marketing had acted improperly or unconstitutionally in making public a recommendation of the Stabilisation Committee to the War Cabinet the fact of such recommendation having been specifically referred to by Mr Sullivan in the House of Representatives in the course of a debate on the Finance Bill No. 2, which took place on October 17; 1942. “I now take this opportunity of setting out the actual recommendation referred to:

“On August 25 and 26 the Economic Stabilisation Committee indicated that in its view the question of the increase in the price of wool should be dealt with as follows:

(1) That negotiations should be commenced between the wool growers and the Government for the division of the 15 per cent on the following basis: la per cent to be held back to cover increase on local consumption woollen goods being stabilised; 8| per- cent or about Id per lb on the basic price to be paid in cash; 5 per cent to be placed in a pool for the benefit of the industry with the object of drawing upon it in the difficult post-war years. (2) That the 15 per cent increase in wool prices be not added to the price of local wool, irrespective of whether it is ultimately paid to the sheepfarmers. (3) That in respect of the current payment for wool, a progress pay ment of 90 per cent be made pending an agreement with the sheep-farmers as to the allocation of the” balance. ’ STABILISATION SCHEME. “I might state also that the Stabilisation Committee made these suggestions at the time because it Was in the process of considering the general outlines of the stabilisation scheme, and it considered ‘that no action should be taken in any field that was likely to prejudice the successful launching of the stabilisation policy.’ It was for this reason that the recommendation in respect of wool was made to the Government. “The Government accepted the proposal that discussions should be opened with the sheep-owners’ representatives on the basis of the percentages suggested by the Stabilisation Committee and you will remember that discussions, at which you were present, did actually take place at the instigation of the War Cabinet. These were suspended when certain difficulties subsequently arose. It was understood, however, that discussions would later be resumed, but this unfortunately was not possible owing to the death of the late Mr Acland and the illness of Mr Hay, two of the sheep-owners’ representatives who were party to the discussions. GOVERNMENT’S POLICY. “It is still the expectation of the War Cabinet that these discussions will be continued and I hope that the arrangements can be made to conclude them at an early date. I can assure you that when these have reached finality there will be no delay by the Government in making a decision. “The Government’s policy of economic stabilisation must virtually affect primary producers, and, as I think you are aware it has been arranged that before decisions are finally made in regard to stabilisation accounts affecting primary produce, detailed discussions shall take place with the Farmers’ Federation in these important matters.” I VIEWS OF SHEEPOWNERS. DECISION OF CONFERENCE ADHERED TO. (By Telegraph—Press Association.) CHRISTCHURCH, January 14. “We want to make it clear to woolgrowers throughout New Zealand that the federation has never departed from the decision reached by the woolgrowers’ conference held in Wellington last June, which was that the increase in price granted in May by the British Government should be paid out to growers in full,” said a statement issued today by the executive of the New Zealand Sheepowners’ Federation. Many messages from all parts of the Dominiofl were received at the federation’s office asking for an explanation of the stand officially taken by the growers’ representatives. The statement continued that there had not been any departure in any respect from the decision of the conference where the delegates were not only from the Sheepowners’ Federation, but also from the Farmers’ Union and the Meat Board. The Farmers’ Union and the sheepowners were unanimous in the decisions reached, and they had been in close collaboration “The growers’ representatives have not at any time accepted the principle of the pooling system, and have been definitely opposed to the principle of stabilising the price of wool for local domestic consumption at the expense of the woolgrower only,” said the federation. Suggestions had been made for stabilisation within the woolgrowing industry. “That has already been accomplished,” the executive stated. “New shearers and shed hands’ and musterers and drovers’ awards have been completed by agreement on the basis of the 15 per cent increase in price in accordance with the sliding scale which has been in operation for many years to the satisfaction of both growers and workers. This has resulted in a substantial increase in wages this season compared with last year in all cases, while further substantial rises in wages payable for ordinary farm labour have been- made. The increase for the lowest paid adult worker has been from £2 5s to £2 17s 6d weekly with board and lodgings found. “It will be seen from these figures that the woolgrowing industry is 'still prepared to stand on its own feet and manage its own affairs and make arrangements with its workers in a full agreement, the basis of which has been for so long the price of wool and the acknowledgment that the workers are entitled fully to share in any improvements in conditions in the industry.” The federation stressed that the Minister of Agriculture, Mr Barclay, when making his announcement at Oamaru had stated the terms of a recommendation only. He had said, “If the Government accepts the recommendations,” but he had not given the Government’s

decision and had not stated that the recommendations had been adopted. “The opinion is apparently held by some persons that the Stabilisation Committee’s recommendations have been adopted by the Government, but this, however, is not the case,” the statement concluded.