Merchants Protest At Wool ‘Bombshell’

Press, Volume CVII, Issue 31502, 17 October 1967, Page 32

Merchants Protest At Wool ‘Bombshell’

(From Our Own Reporter) WELLINGTON, October 16. Strong criticism of the effect of the new floor price system for wool on growers and on the country’s economy was expressed by the president of the Federation of New Zealand Wool Merchants (Mr H. J. Dewe) after an emergency meeting of the federation’s executive in Wellington today.

Calling for an urgent amendment to the Wool Commission Act of 1951 in the interests of all, Mr Dewe said: “As private buyers we were appalled at the bombshell dropped on us.”

He went on: “It is impossible for us to conceive that the new system could have the blessing and good will of anything like the majority of the farmers of this country.” The new system would have grave consequences for the grower, because it would remove all vestige of competition, Mr Dewe said. The grower would lose the personal services that only the private buyer could supply, and he would also lose the early availability of his money.

Last year more than 177,000 bales of wool were brought privately, most of which had already been shipped overseas or sold to local mills. This wool had

earned a considerable amount of overseas exchange. The federation’s members also produced practically all New Zealand's dag wool, which was another source of overseas revenue. DETERIORATION “We envisage a serious deterioration of sheep skins and oddments of wool if they are left in farmer’s sheds because the activities of private buyers are restricted,” said Mr Dewe. Dealing with the effects of the new system on the country’s economy, he warned that private wool buyers and wool scourers would have to reduce operations considerably. “Automatically, this means they will have to reduce staff substantially, and it looks as if between 400 and 500 men could lose their jobs,” he said. “Secondly, the extra quantities of wool which will now go on to the auction market could further depress the market to the detriment of the whole economy. “We recognise the situation in which the Wool Commission finds itself, and realise that it had to operate within the confines of a 16-year-old Act, but it is now absolutely essential that the Act should be amended as soon as humanly possible. Mr Dewe added: “In spite of all these difficulties, we, as a federation, intend to fight on every front for the interests of the grower and the country. Service continues to be our aim, and we are determined to remain in business and give the maximum service we are permitted.”