Help For Australian Wool Industry

Press, Volume CX, Issue 32381, 21 August 1970, Page 17

Help For Australian Wool Industry

(N.Z. Press Assn.—Copyright) CANBERRA, August 19

Australian woolgrowers will receive special assistance from the Federal Government under proposals outlined by the Federal Treasurer (Mr Bury) In his Budget speech. The product which is at present serious in parts of eastern Australia has reduced rural incomes and has led to demands from primary industry groups for Federal assistance.

Mr Bury said the Government would spend up to $3O million on a one-year scheme of temporary relief for woolgrowers. Payment will be made to woolgrowers based on the fall in their gross proceeds from wool between the 1969 and 1970 financial years “beyond a certain percentage and subject to a number of conditions.” Details of the scheme will be announced later by the Minister for Primary Industry (Mr Anthony). Interim Measure “The scheme is regarded as an interim jneasure pending consideration of other possible action appropriate to the longerderm problems of the. -woolgrowing industry,” Mt" Bury said.

“In particular, the Government is examining the need for reconstruction in the wool industry, including as one aspect of reconstruction the question of growers’ indebtedness and of ways in Which the Commonwealth can most effectively assist.” “The Government will also examine all aspects of the setting up and operation of the proposed statutory wool marketing authority,” Mr Bury said. "They will be treated as matters of urgency.” Provision is made in the budget for Commonwealth expenditure of $2.9m to go towards cost of handling and brokers’ administration charges relating to the average plan that the Australian Wool Marketing Corporation Pty, Ltd, has now begun. In addition, the Commonwealth has offered to meet for three years any losses in-

curred by the corporation on resale of wool purchased at the end of a price averaging period. Mr Bury said the Government had decided to support a research and trial programme on the selling of wool by samples. The estimated cost of the programme over two years would be nearly sl.sm. Commonwealth contributions towards the costs of wool promotion and research are expected to total s29m, compared with sl3m last year. Growers’ contributions have been reduced as from August 1 from 2 per cent to 1 per cent of the value of wool sold. The Government has also ; agreed in principle to guai rantee approved borrowings . by the Australian Wool Board , for the construction and r equipping of integrated wool selling complexes. I Rural industries will receive . Commonwealth assistance to the value of $77 million this this year. It is' estimated that a payment of $3l million will be 1 made to the wheat industry ! stabilisation fund in respect ■ of exports from the 1968-69 * wheat crop. No similar pay- ; ment was made last year. Subsidies on dairy products are expected to cost $45 mil- , lion, an increase of $17.5 mil- ; lion.