Wool Drop Could Affect The Budget

Press, Volume CIII, Issue 30445, 20 May 1964, Page 3

Wool Drop Could Affect The Budget

(New Zealand Press Association) WELLINGTON, May 19. The falling prices at recent wool sales was a warning sign and could affect this year’s Budget, the Prime Minister (Mr Holyoake) said tonight. Mr Holyoak e said the Government was naturally concerned about the trend at recei.it sales. It had been discussed at a meeting of the cabinet economic committee todav.

There was no need for panic over the drop in prices at the • Auckland wool ■ sale yesterday, Mr A. BriscoeMoore, deputy-chairman of the Wool Board, told delegates to the annual conference of Auckland Federated Farmers today. Th? drop had not been unexpected, he said.

Mr Briscoe-Moore said demand for carpet wools, especi-. ally from Ameria, had a special .relationship to yesterday’s prices.

, New. Zealand had known for a long time to watch out for the impact of synthetics on wool arid the drop in prices had been anticipated.

Mr Briscoe-Moore said that from now on there was likely to be a very sharp price difference between shorter and longer wools. “While 1 want to assure you that this was foreseen, I want to point out that the Wool Board has sent experts to America to study the car-

pet trade and . we have arranged a joint promotion scheme with the Carpet Wool Council over there for the promotion of Wool for carpets.” • ■ Mr Briscoe-Moore said the good values realised this season had enabled farmers to repay, their debts and to spend money On development.-.. .