INDEPENDENT WOOL COMMISSION SOUGHT

Press, Volume CIX, Issue 32298, 16 May 1970, Page 44

INDEPENDENT WOOL COMMISSION SOUGHT

(■New Zealand Press Association) WELLINGTON, May 15. A call for the establishment of an independent commission to control the New Zealand wool market was made yesterday by the president of the New Zealand Woolbrokers’ Association (Mr R. R. Trotter).

He said at the 1970 Land and Industry Exhibition in Wanganui that while he was convinced the auction system was the best basic method for the grower to sell his wool, it was in the interests of all to strengthen and improve this system. “All wools should pass through auction,” he said. “Auction will hold its place provided other methods of sale are made to conform to similar standards. “The possibility of alterna-i tive methods of sale arriving j are not precluded, but such alternative must be consci- 1

; ously developed with the (grower’s interest in mind. i “I believe this can best be achieved by the establishment of a marketing commission which would have the responsibility of making the rules and refereeing the game.” Mr Trotter said the duties and responsibilities of the commission could include: control of the flow of all wool on to the market and the maintenance of export standards regarding guarantees of weight, description and preparation. There could also be an investigation into the estab lishment of an auction pooling system

I The commission could take I part in the development of j sample selling, objective I measurement, large - scale

blending and the establish ment of wool complexes. Mr Trotter said the com j mission would also negotiate with brokers any changes in wool handling charges. Brokers had agreed that if major economies could be achieved then it was right and proper for these to be shared on an equitable basis with growers. “Brokers are prepared." he said, "to make full details of the cost of their operations available to an independent third party. “There may not be sufficient savings to reduce charges, but if early action is taken in some areas it may enable us to hold them against the present very intense cost and wages spiral." Mr Trotter said there were obvious administrative advan tages in the present wool commission taking over the functions proposed, but it would be necessary to broaden its membership and policy. It was important to have people with marketing expertise and the confidence of the trade and the farmer.

He suggested that while growers, brokers and the Government should re represen ted, not all growers’ repre sentatives should be appointed by the Wool Board.

“1 believe the establishment of an independent marketing commission would enable much more rapid progress with the development of marketing improvements.” he said . Pooling System He said brokers had given considerable attention to the development of a pooling system of selling wool on the lines successfully operated in Western Australia. “If applied to a significant proportion of the clip and particularly if it were compulsory for smaller lots, pooling holds the promise of substantial savings in handling and an opportunity to greatly improve presentation,” he said. “While many growers will

always prefer the independ ence of selling wool under their own brand, and they should be allowed to do so if they have the minimum lot size, others could be attracted.” In practice the wool pool would operate in a similar way to an owner’s account meat pool. Synthetics Danger He said there could be little doubt that synthetics would continue to place wool’s future in jeopardy. “Wool will go the same way as coal and other products which have become obsolete unless we can without delay devise policies and techniques which will enable wool to command such a price that it is profitable to produce,” he said.