COTTON GOODS TO BE DEARER

Press, Volume LXXXV, Issue 25955, 8 November 1949, Page 8

COTTON GOODS TO BE DEARER

SUBSTANTIAL INCREASES FORESEEN

Increases in the prices of eotton goods would be very substantial by the time the full effect of devaluation was felt, said the chairman of Bradford Cotton Mills, Ltd., Sir Walter Massy-Greene, at the annual meeting in Sydney last week. The value of the raw cotton then being used would increase by from 12d to 14d per lb, or almost 50 per cent, of the cost of raw cotton before devaluation. Australia was already under serious handicaps in the purchase of raw cotton, said Sir Walter Massy-Greene. She was excluded from the greatest market, the United States, by dollar restrictions, but her chief competitors in Britain and the Continent still had ready access to a large proportion of American cotton for their needs—a cheaper and better cotton than elsewhere. The Australian industry was forced to buy cottdn when it was available irrespective of when it might be needed.

The cost before the war ranged from 6d sterling to 8d sterling per lb, and it was necessary to hold only three months’ supply. The corresponding cost was now 31d sterling and nine months’ supply had to be held.

There would be no lack of competition in Australia during the current year, said Sir Walter Massy-Greene.

During the last year overseas competition had been unfair. Many of the countries selling textiles to Australia operated on a subsidised basis, either directly or indirectly.