Freight Rise Concerns Wool Merchants

Press, Volume CVI, Issue 31161, 10 September 1966, Page 19

Freight Rise Concerns Wool Merchants

Expressing concern at the recent rise in shipping rates, the president of the Federation of New Zealand Wool Merchants (Mr H. J. Dewe) suggested that the whole question of wool movement overseas needed thorough investigation. Addressing the federation’s annual conference at Hanmer Springs, Mr Dewe said it was disturbing to find an air of complacency, and no sense of urgency in many fields of wool production, handling and marketing. “Wool is still very much in

the forefront of a battle,” he said. “The outcome of this battle will determine whether the income derived from its sale will be sufficient to surmount inevitably increasing costs, and enable agricultural development to progress so that wool production can be increased.” Mr Dewe said present production of cbmpeting fibres was huge. It was forecast that by 1970 this production would be doubled, and that the cost of this man-made imitation would be reduced by 20 per cent.

“Can we afford a 20 per cent reduction in wool values?” asked Mr Dewe. “The answer is a very definite ‘No’ —not at present, anyway. “It is a matter of urgency that the New Zealand wool industry should survey the scene with the object of applying methods of industrial efficiency to every field, from growing the wool, mustering the sheep, to moving it from our shores to our clients across the broad face of the globe.”

Freight Rates

Mr Dewe said that the federation was deeply concerned with the steep rise in shipping freight rates. The federation had registered its dissent at a recent meeting of overseas shipowner interests. “It could be that this rise is unavoidable,” said Mr Dewe. “It could also be that wool should enjoy a more favourable freight rate. “As agents for our farmer clients, we had no evidence produced to substantiate the absolute need for such a debilitating increase in costs. The question is whether the present shipping set-up is conducive to high efficiency. Lack of proper competition can lead to just the opposite.

Talks Offer.— lndia has proposed to Pakistan a meeting of commanders-in-chief of the two countries, a Foreign Office spokesman announced Each country is accusing the other of making war preparations and troop movements on the borders.—Rawalpindi, September 8.