WOOL MARKETING BODY Easy passage for bill forecast

Press, Volume CXII, Issue 32967, 13 July 1972, Page 1

WOOL MARKETING BODY Easy passage for bill forecast

(New Zealand Press Association)

WELLINGTON, July 12.

The Wool Board’s radical marketing scheme seems certain to proceed through to enactment virtually unhindered. Overwhelming opposition to the scheme would have to be expressed in the committee stages of legislation before the Government would consider rejecting it, the Minister of Agriculture (Mr Garter) said today.

The sub-committee is the last point left for opponents of the scheme to make their claims, and the Minister has now made it clear that the Government has all the grower support it needs to proceed with the scheme.

Mr Carter said tonight that the Government had asked the Wool Board to establish grower opinion on the scheme.

To reject the almost unanimous vote of the electoral college and the 80 per cent vote of the Federated Farmers meat and wool council in favour, would be “a slap in face” for these established bodies, he said. “We asked for a show of support and we now have it.” Mr Carter rejected the possibility of a referendum. This would be an argument by farmers that they were not adequately represented by the electoral college and Federated Farmers, and would mean a return to individual producer-say in the industry, he said. Bill introduced The legislation establishing the New Zealand Wool Marketing Corporation was introduced into Parliament today by Mr Carter. He gave an undertaking that there would be no “inordinate” delay in putting the bill through, but people who were opposed to the proposal would be given reasonable opportunity to make their objections known. The bill was referred to the Lands and Agriculture Select Committee, where hearings will be open to the press. Part 111 of the bill, which obliges the corporation to purchase and market wool, will come into force not earlier than July 1, 1973. The rest of the new act will come into force no later than October 1, 1972. Minimum prices

Until the compulsory acquisition provisions come

into force the corporation will administer the minimum prices plan at present administered by the Wool Commission. The bill abolishes the Wool Commission and transfers its property and liabilities to the new corporation.

The corporation will consist of seven directors with full voting rights and two associate directors with full rights of discussion but no voting rights.

The directors will be:— A chairman nominated by the Wool Board and approved by the Minister. He will not, however, be a member of the Wool Board.

Three woolgrowers’ representatives from the Wool Board.

Two directors with commercial experience, not being members of the Wool Board or officers of a Government department.

The Director-General of Agri-, culture. i The two associate directors 1 will be the corporation’s 1 chief executive officer and 1 one other person appointed by the corporation. Trading surplus Full directors will be ap- ( pointed for three-year terms ] but must retire at 70. , Referring to the corpora- < tion’s functions and powers j the bill states that the orga-i nisation must have particular ( regard to the need to achieve ] a trading surplus with a view < to maintaining its capital < funds and providing for reserves. t The bill states that the cor-1 poration’s main functions ] will be the acquisition and marketing of wool, market ( development, and the devel- j opment of efficiency in wool < handling and distribution. Clause 15 is based on sec- <

tion 12 of the Meat Export Control Act, 1921-22. After a date to be named by the corporation, no contract for the carriage of wool for export from New Zealand will be made except by the corporation acting in its own right or as an agent. Contracts made which are contrary to this section will be void. Existing contracts Existing contracts will not need approval if the wool is exported not later than June 30, 1973. The bill empowers the corporation to license persons to receive, store, or appraise wool in any premises and to export it. A wool industry appeal authority is established to hear appeals where the corporation refuses, suspends, revokes or varies a licence. Part II of the bill transfers the Wool Commission’s minimum prices plan to the corporation. The corporation is required to prepare from time to time a table of minimum prices for all types of wool.

In setting out criteria for the minimum prices the bill introduces a new point—the corporation shall have regard to the market prices for the various types of wool. This replaces the present requirement that regard is to be had to the maintenance of wool production in New Zealand.

Season’s prices Tn Part 111 of the bill

—compulsory acquisition—clause 34 provides that the prices for wool to be purchased are to be fixed each season by the corporation after consultation with the Wool Board and the Minister of Agriculture. The price may be increased during the season in exceptional circumstances. If there is any dispute over the price after the wool has been appraised, provision is made for arbitration. The Wool Board may request the corporation to pay it up to $600,000 in any financial year. The bill provides that exemptions, by Order-in-Coun-

cil or regulations, may be made from all or any of the provisions of the new act.

Specified type

In particular, Part 111 may be declared not to apply to any specified type of wool, or to wool to be used for a specified purpose or to the sale of any specified quantity of wool. The bill defines offences where the act is contravened. Penalties for offences against the act are, for an individual, a fine not exceeding $5OO. If the offence continues the person is liable to further fines of $5O a day. In the case of of a body corporate these fines are $2OOO and $2OO.