EXTRA WOOL MONEY

Wairarapa Times-Age, 30 January 1943, Page 2

EXTRA WOOL MONEY

f QUESTION OF DISTRIBUTION E ; DECISION OF GOVERNMENT. PARTLY CASH AND PARTLY IN STOCK. ■ ’ (By Telegraph—Press Association.) ’ WELLINGTON, This Day. The decision of the Government on the ’ question of the distribution of the extra 15 > per cent, paid by the United Kingdom Gov- ; eminent for New Zealand wool was an- ; nounced last evening by the Prime Minister, Mr. Fraser. It is as follows:— (1) That payment in full of the additional 15 peit cent, payable by the United Kingdom Government on this season’s export greasy wool clip would be made to growers, paid partly in cash and partly in non-transferable . Government stock, but the additional 15 pen cent, would not be paid to growers op the wool which would be used in New Zealand. (2) In accordance with this decision the position will be as follows: (a) Greasy wool appraisals this season have been made on the basis 'of 1941-42 prices plus 15 per cent, and from these new values 10 per cent, is l being retained. (b) The 10 per cent, retained will be disposed of as follows: — H) An amount estimated at 1 per cent, required to cover the difference between appraisal values and prices charged for wool sold in New Zealand for local use. (ii) 5 per cent, will be paid to growers in non-transferable Government stock. (iii) The balance estimated at approximately 4 per cent, will be paid to growers in cash at the end of the season. (3) Stating the decision in terms of 15 per cent, additional to last season’s greasy wool prices the position of the grower in respect of the 1942-43 season’s greasy wool clip will be as follows:—(1) On appraisal he is now receiving on average an increase of 3'/2 per cent.; (ii) he will receive in; nontransferable Government stock 5.744 per. cent; (iii) at the end of the 1942-43 season he will receive in cash an estimated aihftint of 4.556 per cent. The total of these increases in cash and bonds is 13.8 per cent., leaving an estimated amount of 1.2 per cent, for local wool. (4) The Government agrees that in cases of hardship the amount of inscribed stock would be replaced by cash or transferable bonds. The Government also agrees that the stock will be available for death duty purposes. GOOD SPIRIT PREVAILS. Representatives of the Sheepowners’ Federation and the Farmers’ Union met the Stabilisation Commission on Wednesday for the purpose of discussing wool prices with particular reference to the 15 per cent, addition on the price of greasy wool agreed to by the United Kingdom Government. On Thursday they waited on the . Prime Minister and placed before him their views on the subject. In announcing the Government’s decision, Mr. Fraser expressed his appreciation of the helpful‘manner and good spirit in which the discussion was carried on, in spite of the fact that there were strong differences of opinion expressed, some of whicli could not be reconciled. I SUBSTANTIAL BENEFITS. Mr. Fraser said that at the present time the Government had put into operation a scheme of stabilisation of wages, salaries and retail costs on the one hand, and producers’ prices and major costs on the other. Under this scheme the woolgrowers would receive substantial benefits: “First, there is an undertaking that their major items of costs will be held at existing levels despite the fact that many of the imported articles are rising steeply in price,” said the Prime Minister. “Secondly, there is an undertaking that if there is any further general rise in wages there will be an appropriate increase in the prices of primary products including wool. Furthermore, while the stabilisation scheme remains in existence woolgrowers 'will be protected from any fall in overseas prices. This will have the effect under stabilisation of placing woolgrowers on the same footing as other sections of the community.” Mr. Fraser added that this arrangement provided for the disposal of this year’s clip only, and the matter next year would have to be dealt with in full harmony with economic conditions.