N.Z. WOOL INDUSTRY

Auckland Star, Volume LXXV, Issue 290, 7 December 1944, Page 7

N.Z. WOOL INDUSTRY

NEW BOARD APPROVED SAFEGUARDING THE FUTURE (By Telegraph.—Parliamentary Reporter) WELLINGTON, this day. General endorsement was given by the Opposition and Government members to the-Wool Industry Bill in the House of Representatives yesterday. They emphasised the importance of the future of wool being safeguarded, not only in the interests of the producer, but also in the interests of the Dominion as a whole. The bill provides for the establishment of a New Zealand Wool Board for the promotion of the wool industry.

The Minister of Agriculture, Mr. Roberts, said he hoped that under the bill the industry would be safeguarded from the disastrous competition from synthetic fibres, and other difficulties in the post-war world. Britain had undertaken to buy New Zealand's wool for the duration of the war and one year afterwards. Some people wondered whether that meant the European war only, but representations confirmed that the contracts related to the global war w-hich, of course, included the Japanese war and one year afterwards. Britain had called a conference in London for the New Year to consider the whole wool question, and had invited representatives from New Zealand, Australia and South Africa. The British Government could see the problems ahead when the Japanese war was finished, and evidently would like to know the mind of the three Dominions. The Common-sense Attitude "We are given to understand that the surplus to-day is 12,000,000 to 16,000,000 bales," added the Minister. "Of course, the farmers could say that the contracts have been made for the duration of the war and the year afterwards, and that Britain should stand by those contracts, but I am sure that is not the general feeling. Even although contracts have been made, it was at a time when no one knew what the progress of the war "was likely to be, and it is only commonsense, and in a spirit of goodwill, that we should approach these problems with Britain and see what can be done."

Mr. Holyoake (Nat., Pahiatua) stated that the Opposition welcomed the bill, realising that the wool industry was of vital importance to the Dominion's economy, because the probable amount of money it would bring into the cotintry this season was more than £20,000,000. New Zealand producers were prepared to contribute their full quota to the International Wool Secretariat. The levy was now 6d per bale, but to promote research and organisation, which would stimulate the consumption of wool, they were quite prepared to accept a levy of up to 2/ per bale. He and his colleagues approved the constitution of the proposed wool board, with the minor exception that it should include representatives of the brokers, in accordance with the resolution of the Meat Board Electoral College. They also preferred the ward system of election, though it was necessary to elect the first board in the same way as the members of the Meat Board. Superior Quality of Wool Mr. Bodkin (Nat., Central Otago) said that if the same energy and effort were put into the improvement of wool products as had been used in the manufacture of synthetic fibre, wool would have nothing to fear from the competition. Woollen goods were superior in quality. Mr. Gerard (Nat., Mid-Canterbury), who stated that he was one of the producers' representatives who negotiated with the Government regarding the bill, described it as going a long way towards what was desired, and containing provision for some extension of powers when the time was opportune. When the country was at war the producers would not expect to have full control over their industry, and possibly some control by the Government might have to be maintained as long as ten years after. The existence of a large surplus constituted a grave problem, which could only be solved in conjunction with the producers of other countries, but it should be tackled immediately. The Minister of Finance, Mr. Nash, said that in Australia they planned to set aside 2/ per bale to be subsidised by the Government to a like amount, thus providing £600,000 for research alone. If a similar decision was made by the Wool Board, New Zealand could co-operate with Australia, although the problem there was not quite the same as the surplus was not so great in the varieties of. wool which the Dominion produced. As to the suggestion that representation on the Wool Board should be widened, any extension of. representation would involve the inclusion of seven or eight more interests. When the bill was considered in committee, Mr. Holyoake moved to amend the constitution of the Wool Board by adding a representative of the Wool Brokers' Association as an associate member. The proposal was lost on the voices, and the bill was subsequently read a third time and passed.