THE WOOL SITUATION

Dominion, Volume 33, Issue 138, 6 March 1940, Page 8

THE WOOL SITUATION

The outcry from the Australian Wool Control Board concerning the policy being pursued for the use and disposal of wool acquired under the British Government’s Control Scheme is not without some justification. The whole of the wool produced by Australia and New Zealand for export purposes has passed under the control of the British Government, which has the power to dispose of it as it thinks best. This commandeer has been accepted as a necessary.war measure,, bul fears have now arisen that the disposal of the wool is not being wisely handled with a due regard for the post-war position. It will be recalled that at the close of the Great War there were heavy surplus stocks of wool held which seriously affected the position of sheepfarmers. A recurrence of this state of things might have a disastrous effect on post-war markets, and it is suggested that the policy now being pursued by the control authorities in Britain is liable to bring about the conditions feared. The chief ground of complaint seems to be that in order to assist Britain’s export trade of manufactured goods, too large a proportion of the wool is being put into store instead of the surplus above immediate requirements being allowed to find its way into other channels of world consumption. The effect of this withholding of supplies from other wool-consuming countries is liable to lead to use of substitutes and to the ultimate loss to the wool-grower of old-estab-lished markets. This is a very real risk, and one not lightly to be ignored. It is one of the dangers which must arise from any interference by the State with established marketing methods and connexions built up by trading and commercial institutions, with overseas countries. The war in this case has been responsible for the interference which has taken place, and the risks have to be faced. This does not mean, however, that any mishandling of the monopoly given should be accepted without protest. It has yet to be shown that the policy now being pursued is unreasonably conservative of British manufacturing interests at the expense of the future world markets for wool-growers. But the fact that there is reported already to be a heavy accumulation of wool in store does justify inquiry and investigation. An endeavour should be made also to ensure that the position is carefully watched as time goes on, and the inteiests of our sheep-farmers safeguarded.