Govt Help For I.W.S. Urged

Press, Volume CVIII, Issue 31783, 13 September 1968, Page 21

Govt Help For I.W.S. Urged

Considerable publicity had been given to the National Development Conference and the Government’s assurance of full support, but when given the opportunity to contribute to an established industry the Government had declined to do so, Mr J. G. Humm, chairman of the meat and wool section of Mid-Canterbury Federated Farmers, said in a statement this week.

Mr Humm was commenting on the refusal by the Government to make a grant to help New Zealand woolgrowers meet their contribution to the work of the Internationa] Wool Secretariat. There appeared to be misunderstanding on this question and it was necessary to review events which had led to the present position, he said.

The International Wool Secretariat was established before the Second World Wai upon the first signs that synthetics would threaten the wool industry.

Eight years ago activity through the secretariat was accelerated and the organisation, which comprised representatives of Australia, South Africa and New Zealand, had greatly expanded by employing the best research and promotion staff available, said Mr Humm. Research centres had been established, culminating in the opening recently of a £1.25m project in Yorkshire. The secretariat employed upwards of 1000 people in 50 research and promotion projects in all wool-consuming countries. Important Results Among the more important results were (1) The artificial crimping of strong wools; (2) a technique of pre-treating yarns so that carpet emerged from the dye-bath in several contrasting colours; (3) the production of a light-weight fabric for suiting, weighing only 9oz to the yard, from coarse wool; (4) new methods of manufacturing tufted carpet which had had a profound effect on the United States market; and (5) the perfection of washability and shrink-proofing techniques. Technical aid was freely available to manufacturers as well as the advertising of Woolmark products, Mr Humm said.

In the last two years textile prices had declined markedly for many reasons, not the least being the deflationary policies of the British Government Harder Hit

Synthetic fibres had been hit far harder than wool, which was selling at a premium over its equivalent synthetic competitor. Now that price cutting had failed to destroy wool as a competitor, the fibre manufacturers were trying to move into manufacturing and distribution to secure tied outlets. Mr Humm said it had become necessary to ask for Government aid at this stage because (1) the grower contribution of $2.38 a bale was as much as the grower could be expected to pay at present; (2) a loan for this purpose meant that the grower eventualy would have to pay, plus interest: (3) devaluation had added £l.3m sterling to LW.S. costs, and (4) the industry considered that the whole communiity benefitted from higher wool prices: every cent increase in price meant an extra s6m in overseas funds. Others Helping

The Governments of Australia and South Africa had recognised this from the

inception of the scheme and had matched the growers’ contribution.

New Zealand woolgrowers had previously accepted the position where the industry met the whole cost because half the contribution of $6.5m was paid from interest on industry funds, Mr Humm said. Now these funds were in wool stocks and there was no interest. There was also considerable doubt whether the Wool Commission had statutory authority to use capital funds or borrow for promotional purposes. The use of interest only was authorised. It was undeniable that the pastoral industries, which produced 90 per cent of the country’s overseas income, received only ssm in tax incentives, compared with s9m to other industries, he said. “Let us remember that without the I.W.S. the wool industry could have become down and out as predicted by our competitors,” said Mr Humm. “To maintain and improve our position we must use every strategy from advertising and publicity, technical innovation and assistance to bring in new processes and products, but the industry cannot carry this load alone.”