AUSTRALIAN WOOL PRICE

Press, Volume LXXIX, Issue 23942, 8 May 1943, Page 3

AUSTRALIAN WOOL PRICE

FURTHER INCREASE REQUESTED

The Australian Prime Minister (Mr Curtin) told a deputation the other day that the Government had no intention of asking (he United Kingdom Government at present for a revision of the wool agreement to procure an increase in price of more than 2d, making it 18d per lb. The deputation's speaker said the request was based on the fact that, in 1932,, the Central Wool Committee reported that the cost of wool production was 14d per lb. Because of the war and for other reasons, including the depreciation of Australian currency and the decrease in purchasing power, the cost of producing wool now approximated 18d per lb. It is known that there are several reasons influencing the Government in its attitude, states a newspaper report, One of the principal ones is that the Government would be embarrassed in seeking increased wool prices while it is seeking improved contract prices from the United Kingdom for butter and cheese. Large quantities of wool purchased under the agreement are still stored in Australia, because of the lack of shipping, and if Britain paid a higher price it would, in effect, simoly be paying more merely for the benefit of Australian storage. There has also been a tendency among woolgrowcrs to keep sheep mainly for wool purposes, although the Government urgently needs sheep carcases to fill orders for dried meat in the United Kingdom. This is perturbing the Government because latest figures show that Australia is overstocked with sheep to the extent of 20,000.000. The original price at which Great Britain contracted to buy Australian wool for the duration of the war and one year thereafter was an average of 13.4375 d per lb. Last year the price was increased by 15 per cent.