PRICE FOR FINE WOOLS

Press, Volume LXXVI, Issue 23087, 1 August 1940, Page 8

PRICE FOR FINE WOOLS

♦ QUESTION ASKED IN HOUSE VALUATION UNDER APPRAISAL SCHEME [From Our Parliamentary Reporter.] WELLINGTON, July 31. In arranging the appraisal values for various types of wool throughout New Zealand, particular regard was given to the position' of the grower of fine wools in the South Island in order to ensure that these wools secured 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 by 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 production is not required,” Mr Burnett said, “then it would be better in Dominion interests if large areas of pureh 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 coriimiltee comprising all sections of the wool-growing industry with a view to ascertaining the assessed costs of production under existing conditions. “This committee,” said Mr Fraser, "finally reported a minimum price of 12d per lb as the over-all average cost of production. As members are aware, the final purchase price agreed upon by the United Kingdom Government was 12.[d per lb. which figure was 33 1-3 per cent, above the 1938-39 market realisations. Actually average appraisement values in the South Island were higher than the North Island, namely, 12.Gd and 11.8 d respectively, “Undoubtedly woolgrowcrs aS a whole suffered adversely as a result of the poor production conditions of last season, but this was by no means confined 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, and, indeed, has already contracted to purchase 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.”