PRICE OF WOOL

Ashburton Guardian, Volume 60, Issue 252, 1 August 1940, Page 3

PRICE OF WOOL

VALUATION OF FINE SORTS.

THE APPRAISAL SYSTEM. (Special to the “Guardian.”) WELL lln G TON , July 31. In arranging the appraisal values for various types of wool throughout New Zealand, particular regard was given to the position of the growei of fine wools in the South Island in oidei to ensure that these wools seemed values comparable in every way with crossbred wool, said the Prime Minister (the. Rt. Hon. P. Fraser), replying to an urgent question asked by Mr T. D. Burnett (Opposition, Temuka) in the House of Representatives to-day. “As a very considerable quantity of wool in the South Island is taken over bv the Government at a price below cost,” Mr Burnett asked, “would the Government tell the growers affected if maximum wool production at present is in Imperial and Dominion interests or not? If maximum wool proproduction is not required,” Mr Burnett said, “then it- would be better in Dominion interests if large areas of purely pastoral country were systematically spelled, in which event, rents, rates and taxes should be adjusted.” Mr Fraser replied that before the final purchase agreement was concluded with the United .Kingdom Government, the New Zealand Government consulted a representative committee comprising all sections of the wool-growing industry with a view to ascertaining the. assessed costs of pioduction under existing conditions. “This committee,” said Mr I rasei “finally reported a minimum price oi 12d per lb as the over, all average cost of production. As members are aw a) e, the final purchase price agreed upon by the United Kingdom Government was 12Jkl per lb, which figure was 33 1-3 per cent above the 1933-39 market realisations. Actually average appraisement values in the South Island were higher than the North Island, namely, pj/6d and 11. Id respectively. ‘Undoubtedly ' woolgrowers as a whole suffered adversely as a result of the poor production conditions of last season, but this was by no means conlined to the South Island, and it is unlikely that the same conditions will prevail this season. The United Kingdom Government requires all the wool that New Zealand can produce, i»m indeed, lias already contracted to puichase the entire clip for the duration of the war and one year thereafter, on a basis which, as the above figures show, is by no means' below the cost of production in this country.”