LEVIES ON WOOL

Press, Volume XC, Issue 27400, 13 July 1954, Page 10

LEVIES ON WOOL

Southland Farmers Oppose Abolition “PRETTY SMALL PREMIUM TO PAY” (New Zealand Press Association) INVERCARGILL, July 12. The meat and wool section of Southland Federated Farmers today rejected a remit suggesting that all wool levies should be abolished. The wool industry has a reserve account of about £28,000,000. Mr H. L. Mclntyre said the levies were revised each year. The account was high, and interest of about £BOO,OOO was derived from it. That reserve would be needed if there was a drop in the price of wool. “The Woo] Board has authority to levy up to 5s a bale,” said Mr McIntyre. “Last year the levy was 4s, which gave a total amount of about £250,000.” STr R. D. Brown suggested that the Wool had to keep the account intact, because the high prices at present being paid for wool might not continue. Mr J. Graham’s view appeared to be the general opinion of the meeting. He said: “The levy is a pretty small premium to pay to see that prices do not revert to a low level;” Mr W. M. Cavanagh (Tuatapere) explained his branch’s reason for submitting the remit. He said it was felt that further levies were unnecessary. The board could use at least the interest of the £28,000,000. The levy had gone up every year so far. If it kept the present rate of increase, in a few years it would amount to about 18s a bale.