Views On Wool Payments

Press, Volume CVIII, Issue 31768, 27 August 1968, Page 18

Views On Wool Payments

Leaders of meat and wool sections of Federated Farmers in the three provincial districts in Canterbury differed when they were asked this week to comment on the decision of the electoral committee of the Wool Board opposing a continuation of supplementary payments on wool prices.

At its annual conference, the North Canterbury meat and wool section of Federated Fanners had decided to support the continuation of supplementary payments, said the chairman of the section (Mr A. F. Wright). Although North Canterbury produced more fine wool than many areas, there were certain parts of the district where farmers were crossbred wool producers who were in serious financial difficulty. The additional payments were needed to make their farming closer to being economic in the face of climbing expenses and low returns. Mr J. G. Humm, chairman of the Mid-Canterbury meat and wool section, said the section did not believe that supplementary payments

should be continued because money was being borrowed to pay for them and the amount involved as far as individual fanners were concerned was so small that it was negligible. Furthermore, it was the Government's responsibility if farmers were in financial difficulties.

“I personally agree that the time is past when there is any need for supplementary payments,” said Mr D. J. Hulston, chairman of the South Canterbury meat and wool section.

“I recognise that this payment is of significance to a

small percentage of woolgrowers, but their individual problem is a national problem rather than specifically a woolgrowers’ problem. “While the floor price and supplementary payments have done a good job in buffering the fall that has occurred in prices, the margin between supplementary payments and the floor is now so narrow that in spite of possible hardship to a few, sheepfarmers should now face reality and line up with a realistic floor price.”

Mr Hulston said that the margin between the level of supplementary payments made and the floor price had been narrowing and at the most would be averaging now no more than 1c to l)c per lb, so that the significance of the payments on the average gross income of a sheepfanner was very slight. Incurring further debt by continuing the payments would only be placing a burden on the industry in the future, in that the money would have to be repaid.