Wool-Policy Change “Political Suicide”

Press, Volume CVII, Issue 31500, 14 October 1967, Page 14

Wool-Policy Change “Political Suicide”

The Wool Commission had committed political suicide in changing its declared buying-in policy, said the president of the Woolbuyers’ Association (Mr B. P. Hill) in Christchurch last evening.

Although the chance of clearing the New Zealand clip for export was almost certain at the new minimums, it would still be prudent to realise that before stability and a return to confidence could be achieved, the trading bottom would have to be found, said Mr Hill.

The immediate depressing effect of this action on the market would be apparent in the next few sales, but this would only be a reflection of the relative values of New Zealand wools on an open world market It eould well be that the confidence in trading so urgently required

might soon be restored. Mr Hill said that there was

no doubt in his mind that the present economic situation for

New Zealand had forced the Government to insist on this drastic change in policy. It was to be deplored that the Government had allowed the eommlsssion to abandon its strongly declared policies. Also, it was imperative that the commission reiterate,

with the support of the Goverament, its declared intention of being a strong holder of existing stocks, and at the same time declare its intention regarding any stocks that it might subsequently acquire, said Mr Hill. The present demand for second-shear wools and crutchings and other wools

suitable for carpet yarns offered a unique opportunity

for the commission to sell some of the stock that it

acquired last season, said Mr Hill. Although these wools might sell at a discount on last season’s buying-in price, they would assuredly bring above the recent buying-in price. In this way, he said, these wools from the stockpile

would act as buffer supply to the market. ■ It Was not possible at present to assess whether the present level of orders for these wools would continue when more normal supplies became available, and it might mean buying in ah equivalent quantity again later in the season, but this would at least take advantage of the present situation, said Mr Hill.