GOVT HELP TO WOOL ‘CONSIDERABLE'—P.M.

Press, Volume CVIII, Issue 31802, 5 October 1968, Page 1

GOVT HELP TO WOOL ‘CONSIDERABLE'—P.M.

(New Zealand Press Association)

AUCKLAND, October 4.

Government assistance to the wool industry was considerabl (Mr Holyoake) said at the official opening today of the Dalgety-Lo

le, the Prime Minister an wool store at Wiri.

The chairman of the Wool Board (Sir John Acland), speaking at the same ceremony, referred obliquely to the board’s request for Government financial assistance by saying that the price New Zealand received for its wool would depend partly on the work of the International Wool Secretariat.

Sir John Acland said that the board had applied to the Government for a grant to enable it to continue making a full contribution to I.W.S. research and promotion, but the Government had so far offered no more than a loan. Mr Holyoake said that assistance, direct and indirect, was given by the Government through the Department of Agriculture, and the Department of Scientific and Indus-

trial Research and through Massey University and Lincoln College.

The Government also contributed 8187,000 a year to the wool research organisation.

“Then there is the Wool Commission," said Mr Holyoake. The reserves of the commission grew from ss3m in 1952 to 873 m in 1966—the year of the start of the big drop in wool prices. “This growth in the commission’s reserves of 820modd came very largely from tax-free interest.

Full Interest

“These funds were invested wholly in Government securities and earned the full current rate of interest of from 4 to 5 per cent. “Today, the commission’s funds are invested in stockpiled wool 687,000 bales, which cost some s66m. Even allowing for lowered wool prices this is a considerable asset. “Because of this investment

in stockpiled wool the commission is temporarily out of liquid funds,” said Mr IJolyoake. “Therefore the Government is providing the necessary funds by 1 per cent loans. When the commission realises on its stockpile it will have cash in hand again, and again will be able to invest it at 5 per cent. “This is another contribution by the Government to the industry, and through the industry to the country.” Mr Holyoake said the outlook for wool prices had improved tremendously as a result of the recent Dunedin sale.

“While this is heartening, one swallow doesn’t make a summer. But by heavens it’s nice to see the swallows back again,” said Mr Holyoake.

Two Factors

Sir John Acland said that the price New Zealand received for its wool would depend on two things. “First, it will depend on the chemical companies who

are increasing, the production of their fibres in greater quantities and at lower prices. “Second, it will depend on the research, product development, technical assistance and promotion of the I.W.S. throughout the world. “I sometimes wonder what would have happened if the growers of Australia, South Africa and New Zealand who form the I.W.S. had not, five years ago, trebled their tax on themselves and their funds to step up promotion on wool. “Had they not done this I am quite sure wool would be a neglected fibre if not a forgotten one.” Sir John Acland said that because of the work of the I.W.S. there was a premium in the price for apparel wools above synthetics. But the premium for carpet wools was not so large, although carpet wools were going into consumption in increasing quantities in Europe, the United Kingdom and the Unite)! States.