DISPOSAL OF WOOL

Press, Volume LXXXVII, Issue 26510, 27 August 1951, Page 6

DISPOSAL OF WOOL

Auction System To Be Retained

MARKETING PLAN FOR N.Z.

POSSIBLE

(From Our Own Reporter)

1 WELLINGTON, August 26.

Nq recommendations to Governments for abandoning the wool auction system have been made by the wool committee of the International Materials Conference which has been meeting in Washington. This is made clear in a press statement issued by the committee in Washington yesterday. Although Australian woolgrowers have rejected the proposed Commonwealth wool marketing plan, consideration has already been given to an alternative plan for New Zealand. This was announced by the Minister of Marketing (Mr K. J. Holyoake). He said that, in anticipation of an Australian rejection, preliminary discussions had been held and the New Zealand Wool Board and electoral committee would meet this week to review the situation.

The implication contained in the Washington statement is that there will be no interference with the present method of disposing of wool unless the international situation demands it.

The press statement, which was agreed to by the wool committee yesterday morning in Washington, makes it clean that the committee gave the fullest consideration to both planned distribution and regulation of prices, but was unable to reach agreement on proposals which could be recommended to Governments for adoption.

Text of Statement The statement is as follows: “It was announced to-day that the wool committee of I.M.C. had arrived at the end of its present series of meetings without reaching agreement on a recommendation to be made to Governments. Except for a few weeks’ recess, the wool committee has been in session since the beginning of April and has given careful consideration to the world wool situation, particularly as it may develop during the forthcoming year. “The committee has considered whether international auction is necessary at this time, what types of action might be practicable, and whether recommendations should be made to Governments for special measures to carry out an agreed plan for distribution, or to regulate prices. “The committee has had full regard to the numerous factors that may be expected to influence future wool supplies and market operations. These include production forecast, estimated civilian and defence requirements, price trends, the ‘ conservation of wool supplies, production, and the use of substitute fibres, the absence of any further Joint Organisation stocks and certain carry-overs of wool from 19501955 production. Increased defence requirements on the one hand may be off-set by a downward trend in civilian consumer demand on the other hand. The wool committee’s examination has revealed that it is particularly difficult to assess with any degree of certainty the wool marketing outlook and on the interpretation of the statistical position for the coming wool year, there were differences of opinion in committee.

“While the committee is terminating its present session, it will of course continue in being and stand ready to meet in accordance with its rules of procedure to advise Governments on any developments in the wool situation. Arrangements will be made by the committee to keep the statistical situation under review and to collect any data necessary for that purpose.” Mr Holyoake’s Comments Commenting on the result of the Australian referendum on the proposed Commonwealth wool marketing plan, Mr Holyoake said that while agreement to proceed with the plan had been reached some months ago between the four Governments in the

United Kingdom, Australia, South Africa, and New Zealand, and the growers’ prganisations in South Africa and New Zealand, Australian participation in the plan was always subject to a referendum of the growers. Mr Holyoake said that he shared the feelings of disappointment he knew the New Zealand Wool Board and the great majority of growers would have at the result of the Australian vote. It would naw be for New Zealand to determine its course of action. The Government would be glad to continue discussions with industry representatives to evolve a suitable plan.