Wool Chairman Forecasts High Fabrics Prices

Press, Volume CX, Issue 32214, 5 February 1970, Page 24

Wool Chairman Forecasts High Fabrics Prices

(New Zealand Press Association)

WELLINGTON, February 4.

“It is the Nelson cotton mill all over again—and bigger than ever,” said the chairman of the Wool Board (Sir John Acland) today, commenting on the reports of the committee of inquiry into woollen mills, which said that the mills would move into synthetics.

“The mills are not thinking only of replacing wool with synthetics, they hope to take over production of a vast range of household fabrics,” said Sir John Acland. “They are not greatly interested in processing wool for export. This is the clear message of the report.

“The Minister has given approval in principle to the policy by saying that the whole field of textiles is open to the existing industry. If the policy is carried out, it will be most costly to the New Zealand consumer." Sir John Acland said the report predicted that output of the mills could treble in 10 to 15 years. It spoke of synthetic fabrics for shirtings, men’s and women’s underwear and outerwear, upholstery material, sheetings, tentings and industrial fabrics. Dress Materials

In linen and jute, it referred to tea towels, table cloths and dress materials. In cottons and mixtures, it spoke of everything from industrial fabrics to dish cloths. The report said that individual mills should concentrate on a small range of products and that where necessary, there should be financial assistance in the parcelling out of areas. It also recommended (and the Government had approved in principle) a system of protective duties in which the tariff was set to ensure that imports could not be sold below the local manufacturer's price. “It is obvious that this programme means heavy investment in the production of fabrics which can only be sold in New Zealand at prices far above world levels,” said Sir John Acland. “Much Greater” “The report says that the prices of synthetic fibres to the mills have been considerably more expensive than in Australia or Britain. “This was for use in woollen-type fabrics. If the

mills are allowed to go into shirtings, sheetings and other cotton-type fabrics, the disparity in price to the consumer is going to be very much greater.”

Sir John Acland said that if the mills were to put the same investment into the production of wool lines for export, there would be far greater benefit to the whole economy.

“They are sitting on top of the world’s greatest supply of crossbred wool. It is a unique product and they enjoy many advantages in using it. Small, High-cost

“In synthetics they have all the disadvantages. Synthetics are a universal product spun and woven very competitively in low-cost countries. We are a small, high-cost market far from sources of supply.” ‘ Sir John Acland said the report made a strong case for a wool products export industry, but painted a picture of the mills as small, weak, fragmented with no incentive to use wool.

“I doubt this,” he said. “The Government should direct and assist the industry into the export path, where it can make the greatest contribution to economic growth."