“FREEZING” WOOL

Press, Volume CII, Issue 30286, 12 November 1963, Page 15

“FREEZING” WOOL

Approval For r Scheme (N Z. Press Association) WELLINGTON, Nov. 11. The Cabinet today approved the wool retention scheme announced by the Prime Minister (Mr Hoiyoake) in the South Island last week. • Mr Hoiyoake said after a meeting of the Cabinet today that he did not know if the high prices for wool would continue, but that if any continuation of present jri es occurred it would make it difficult for farmers t‘ s-end their increased income on development, which was tax free, this year. “A ‘freeze’ would enable it to be spent over an extended period,” he said. Mr Hoiyoake said about a quarter of New Zealand's wool had so far been sold at sales. Liberal Doubt Doubts whether the price of wool was sufficiently high and whether there was sufficient assurance of a firm market to justify a retention scheme were expressed by the Leader of the Liberal Party and candidate for Invercargill (Mr R. M. Hutton-Potts), according to an Invercargill message. "The question I would ask the Prime Minister, and I think it is most important, is this.” Mr Hutton-Potts said. "In the event of prices being looked upon as sufficiently high and sufficiently firm, is the money going to be retained as sterling in England, or is it going to be retained in New Zealand?" If the money was retained as sterling overseas, then it was a real protection against a future fall in market prices and a protection for our own importing needs. If it was not. it could still be useful, especially in allowing farmers to adjust their taxation. This was not necessarily a bad thing for farmers would be able to soread their tax and use their income in the development of their properties, paying less tax on it than they would otherwise have done. But the best form of retention. Mr Hutton-Potts said, would be retention in sterling.