Support For Wool To Be Reviewed

Press, Volume CVII, Issue 31499, 13 October 1967, Page 1

Support For Wool To Be Reviewed

(New Zealand Press Association)

WELLINGTON, October 12.

The Deputy Prime Minister (Mr Marshall) said tonight that the Wool Commission had advised the Government that it would meet after the Napier wool sale tomorrow to “review the position” of the floor price scheme in the light of the sale.

Mr Marshall was commenting on reports, received from Bradford by New Zealand woolbuyers, that the Wool Commission would cease buying under the floor price scheme after the Napier sale, and that the Government would subsidise sheepfarmers.

A cable received from Bradford by an Auckland member of the wool trade reads: “No chance business Bradford due report Wool Commission ceasing after Napier. New Zealand Government subsidising farmers in free market. This has stopped all inquiry.” Some members of the wool trade believe that the action of Bradford interests in circulating unconfirmed reports about the intentions of the Wool Commission is a further deliberate attempt to break the floor price scheme. One Auckland member of the trade said there was nothing unusual in that sort of thing as far as Bradford was concerned. “The Bradford

wool trade seethes with rumours the whole time,” he said. The president of Auckland Federated Farmers (Mr W. R. Martin) tried by telephone today to discuss the Bradford reports and cables with the chairman of the Wool Commission (Mr E. L. Greensmith). He said later that Mr Greensmith would not comment. Mr Martin said he took the “no comment" replies as tacit acceptance that the Bradford reports were correct.

“When the floor price was lowered from 36d a pound to 30d the woolgrowers strongly opposed the reduction,” said Mr Martin. “But they have since been forced by financial pressure to accept this price and sell their wool at a totally uneconomic figure. “The woolbuyers have been successful in getting the floor price lowered once. Now they want to remove it, apparently, according to the Bradford report, with the full support of the Government and the Wool Commission.” Mr Martin said the auction

system played into the hands of the woolbuyers. If in the future all wool had to be sold at auction to qualify for a subsidy the wool marketing co-operatives would be forced out of business or forced to pay additional commission to fill their orders and keep faith with their customers. “It is time that the Wool Board and the Wool Commission eliminated all the operations between the grower and the manufacturer and formed an organisation to market our wool direct from grower to manufacturer. “The Wool Commission Act can be altered by legislation to allow the wool to be sold in this manner. “That the Government can enact legislation of importance as a matter of urgency has been shown by the speedy alteration of the drinking hours.” Mr Greensmith said tonight that the Bradford reports were incorrect. “No decision has been taken about the commission ceasing buying, or on the payment of a subsidy to the farmers," said Mr Greensmith. “We cannot comment on the Bradford reports, but the whole situation is under review,” he said.

Mr Greensmith added that although there had been a good result at Napier today it had been only a small offering and could not be taken as indicative of prices as a whole.