Wool Board not seeking to dominate industry

Press, 11 June 1987, Page 38

Wool Board not seeking to dominate industry

PA Wellington The Wool Board does not seek to dominate its industry, according to the board's chairman, Mr Pat Morrison. In an address to the World Wool Forum erf the International Wool Textile Organisation conference in Rio de Janeiro, Mr Morrison said the board had no plan to take over anything now being done effectively by others and in a manner responding to "the changed environ; ment in which we all now have to operate.” ■ “We do, however, have to do all we can to participate in the wider industry, so that we can turn wool away from the vagaries of commodity marketing to the greater certainties of specialist fibre marketing,” he said. The board would look ■at any proposals that .• would strengthen the demand for wool or promote its use without detracting from the interests of existing and valued end users. Mr Morrison said the board’s market interventions were not intended artificially to withhold New Zealand wool from international consumption or to force wool up to artificial price levels, having the same effect - However, the board would ensure that; New Zealand wool growers did

not bear the brunt of “everyone’s difficulties.” “Woolgrowers are entitled to receive, in full, price levels which match the international demand for the. fibre they produce,” he said. “Equally, they are entitled to receive proper market reward for producing a better quality product "Appropriate premiums should, in our view, always exist within the market and much of our intervention support in January and February this year was designed to ensure just that” Mr Morrison also rejected criticisms’ of the board’s decision to make limited direct sales from its stocks of wool purchased as part of its market intervention activities.

"The trading and price criteria we use in the sale of board stocks are exactly the same as those of the trade,” he said. “Our stocks are always available to the local trade for purchase, and indeed the record turnover of board stocks this year" has only been achieved because of trade purchasers.” Mr Morrison told the conference that, “the board has not taken, and does not intend to take, a forward uncovered trading position with anyone

— central stage organisation or otherwise.

“As a board, we believe that to . take a trading position within the market would be incompatible with our price objectives.” Any trading activities undertaken by joint ventures involving the board were completely independent of the board and its market support and stock sales activities, Mr Morrison said. >

"The joint venture between the Wool Board, Robert Ferrier, Ltd, and Wrightson Dalgety is not an operating entity of the Wool Board. None of the partners will have an unfair advantage in terms of trading benefits.

“We have no commitment ourselves to use preferentially the joint venture scours and will do so only in an open competitive environment” ■

Mr Morrison said the» board had made no plans to become involved any further down wool’s processing chain. “Allegations that we are currently proposing to buy into a spinning facility are unfounded, misguided or mischievous.”

Mr Morrison called for greater interaction between industry sectors in future, particularly to overcome problems in geographic isolation.