Aust, move to boost wool

Press, Volume CXI, Issue 32676, 4 August 1971, Page 3

Aust, move to boost wool

<N.Z. Press Association— Copyright) ’ SYDNEY, August 3. The Australian Wool Board today announced a wide-ranging policy to put new life into the country’s ailing woolgrowing industry

The chairman of the wool board (Sir William Gunn) said it was essential that one comprehensive policy be established for all aspects of the wool , industry.

For a start, the demand for wool must bq increased. This required a concentrated effort to promote wool products in critical markets, especially the United States.

Sir William Gunn said he would like Australia to make an additional s4m available to the International Wool Secretariat for promotion in 1971-72, and this increased to S6m in 1972-73.

The industry should not look upon the present 30c per lb as the permanent price for wool. “We believe it is the low point,” he said. “It should be assumed that the price will increase to 35 cents per lb in the near future.”

Other points in the policy paper included:— That the Wool Commission should act as a commercial organisation, always testing the market; it should never have to buy an unreasonable quantity of wool, and should never be used to subsi-

dise woolgrowers. 'That the rural reconstruction board should be allowed to reconstruct a woolgrower if he is viable at 35c per lb; where a woolgrower is in a hopeless financial position, the board should be allowed to make him a grant of $3OOO instead of that amount as a loan; and the state Government should put him on a list for a housing commission home. That the Commonwealth Development Bank should become a rural bank, empowered to make long-term loans to rural producers. That the Australian Wool Board is against any controls on the quantity of wool produced. That there should be no

controls on the types of wool marketed—except that, the wool Commission. wilt not have to support those types which it feels will not provide a net return to the grower. That every effort should be made to have the United States lift its tariff on greasy wool. That the Government should make an early decision to acquire the whole Australian wool clip, so as to enable wool to be marketed more efficiently. “This would reduce handling and transport costs, and give a better service to the wool-buying customers."