WOOL PRICE RESERVE

Press, Volume XCVII, Issue 28742, 13 November 1958, Page 7

WOOL PRICE RESERVE

Recommendation In Australia

(N.Z Press Association—Copyright) MELBOURNE, November 12.

The principle of a minimum reserve price at auction for the Australian wool clip was adopted at a meeting in Melbourne today of the Australian Wool and Meat Producers* Federation. It was decided to recommend to the State association and the wool industry in general that the reserve price be determined each year in collaboration with New Zealand and South Africa.

The federation, representing more than 45.000 .growers throughout Australia, met to consider the serious recession in wool prices and its effect on the national economy. The meeting decided to recommend the adoption of the principle of a minimum reserve price and that in the initial stages the Commonwealth Government be asked to provide the necessary funds to administer the scheme.

The plan should provide for a levy from growers on a percentage of returns basis to build up capital progressively to take over the responsibility from the government. This would make the scheme self-supporting and establish a revolving fund. The committee also decided to recommend that the plan be administered by a committee representative of the industry, with an adequate majority of growers and provision for advisory panels from other sections of the industry.