Early action urged on wool report

Press, Volume CXI, Issue 32700, 1 September 1971, Page 2

Early action urged on wool report

(from Our Own Reporter) WELLINGTON, August 31. The immediate setting up of a pro tern directorate to establish a wool marketing corporation is being recommended to the Government by the Wool Board.

The establishment of the corporation, with power to purchase, market and process the wool in any manner considered appropriate, was among recommendations made to the board by the Battelle Memorial Institute, of Columbus, Ohio.

The full plan, as acby Board, was released today. The board has decided to set up the pro tem directorate as soon as possible. It will consist of a chairman and two or three other memters, nominated by the Wool Board and approved by the Government The directorate will be responsible to both the board and the Gov-

eminent Basically, the Wool Board’s plan follows the Battelle recommendations, released last week. The chairman of the board (Sir John Acland) continues to urge immediate action.

The full plan cannot be initiated without the passing of legislation, because neither the Wool Industry Act nor the Wool Commission Act encompasses the concept of a marketing organisation. ‘‘The corporation must have considerable autonomy,” says Sir John Acland in introducing the plan. “Its

powers should be broad, and legislation should include normal safeguards of the publie interest and also safeguards in the use of public funds—but at the same time jjj e legislation should recognjse jjie need for the corporation f 0 make quick and independent operational decisjOns.” - Pricinff svstern tricing system

The Wool Board’s plan requires the powers of the corporation to be tempered by the establishment of mutu-ally-acceptable bargaining procedures to establish pricing schedules ror wool; the establishment of a mechan-

ism for equitably determining values for commercial activities, if these are undertaken; and the obtaining of Ministerial or Wool Board approval for certain types of major action. The duties of the pro tem directorate will be to establish a liaision with the wool trade and industry in New Zealand and overseas; to consult on activities which would be beneficial to the marketing of New Zealand wools; to complete plans for the establishment of the corporation and to present these to the Government and the board; to help in drafting legislation; and to appoint the directors and senior staff. Eight directors

The permanent directorate will be an eight-man body, as outlined last week. The chief executive will be designated general manager, and will nave over-all responsibility for the corporation’s activities and specific responsibility for the international and marketing activities. A deputy general manager will handle New Zealand activities. The Wool Board suggests that as soon as it is organised and has obtained finance, the corporation should establish a marketing unit and a mechanism for obtaining wool to supply it The unit would do direct marketing in the United States and pos-

sibly in Canada, especially in the carpet and. knitwear industries.

It is suggested that the manager of the marketing unit be an American with proven skills, and that he be supported by two staff members with special knowledge of the carpet and knitting industries, and at least one man with intimate knowledge of New Zealand wools. The last position, which could be assigned on a rotating basis, might be filled by a man from a New Zealand buying or processing firm. The Battelle Institute believes there is scope for increasing the price of New Zealand wool in the United States by providing this on-the-spot service. Improvements in the system of sales of wool are needed. There will ■■ be no change in the 1971-72 season, and thereafter the Wool Board believes changes in the pattern should come about through the development of alternative methods of sale and their testing in competition with established methods.

The options initially available to growers will be: auction, sale to an approved and licensed buyer, sale through the New Zealand Co-opera-tive Wool Marketing Association, delivery to an approved wool store for appraisal and sale to the corporation, and direct shipment overseas through other than a New Zealand trader. Direct purchase The Wool Board believes these options should remain open to growers as long as the corporation believes they are viable and beneficial. The corporation should, however, investigate a method of direct purchase. On finance, the report notes that the assets of the commission are about s4Bm, of which s2lm is in wool stocks. This would be the fund from which the woolgrowers’ contribution to the corporation would be drawn.