EXTRA WOOL PRICE

Dominion, Volume 36, Issue 94, 15 January 1943, Page 4

EXTRA WOOL PRICE

Prime Minister’s Reply To

Farmers’ Union

IMPROPRIETY DENIED

A denial that the Minister of Marketing, Mr. Barclay, had acted improperly or unconstitutionally in making public a recommendation of the Stabilization Committee to the War Cabinet regarding the distribution of the increased price of 15 per cent, for wool granted by the United Kingdom was given yesterday by the Prime Minister, Mr. Fraser. It was contained in a letter by Mr... Fraser in reply to one from the president of the New Zealand Farmers’ Union, Mr. W. W. Mulholland, protesting at the action of the Minister in disclosing the recommendation at a meeting in Oamaru.

The text of Mr. Fraser’s letter to Mr. Mulholland is as follows : — “In reply to your letter of January 13 I would like to take the opportunity to remove any misapprehension which may have arisen with regard to the position, of the Stabilization Committee’s suggestion concerning the way in which the 15 per cent, increase in the price of wool should be distributed. “It is not correct to say that the Minister of Marketing has acted improperly or unconstitutionally in making public a recommendation of the Stabilization Committee to the War Cabinet the fact of such recommendation having been specifically referred to by Mr. Sullivan in the House of llepresentatives in the course of a debate on the Finance Bill No. 2, which took place on October 17, 1942. “I now take this opportunity of setting out the actual recommendation referred to: “On August 25 and 26 the Economic Stabilization Committee indicated that in its view the question of the increase in the price of wool should be dealt with as follows: . . 1 (1) That negotiations should be commenced between, the wool growers and the Government for the division of tho 15 per cent, on the following basis: li per cent, to be. held back to cover increase on local consumption woolen goods (being stabilized: Si per cent, or about Id. per lb. on the basic price to be paid in eash; 5 per cent, to be placed in a pool for the benefit of the industry with tho object of drawing upon it in the difficult post-war years. (2) That the 15 per cent, increase in wool prices be not added to the price of local wool, irrespective of whether it is ultimately paid to the sheep-farnlers. (3) That in respect of the current payment for wool, a progress payment of 90 per cent, be made pending an. agreement with the sheep-farmers as to-the allocation of the balance. General Stabilization Scheme.

“I might state also that the Stabilization Committee made these suggestions at the time because it was in the process of considering the general outlineism of the stabilization scheme, and it considered ‘that no action should be taken m any field that was likely to prejudice the successful launching of the stabilization policy.’ It was for this reason that the recommendation in respect of wool was made to the Government. “The Government accepted the proposal that discussions should be opened with the sheep-owners’ representatives on the basis of the percentages suggested by the Stabilization Committee and you will remember that discussions, at which you were present, did actually take place at the instigation of the War Cabinet. These were suspended when certain difficulties subsequently arose. It was understood, however, that discussions would later >ie resumed, but this unfortunately was not possible owing to the death of the late Mr. Acland and the illness of Mr. Hay, two of the sheep-owners’ representatives who were party to the discussions. “It i.s still the expectation of the Mar Cabinet that these discussions will be continued and I hope that the arrangements can be made to conclude them at an early date. I can l assure you that when these have reached finality there will be no delay by ithe Government in making a decision. “The Government’s policy of economic stabilization must vitally affect primary producers, and, ns I think you are aware, it has been arranged that before decisions nre finally made in regard to stabilization accounts affecting primary produce, detailed discussions shall take place with the Farmers’ Federation in these important, matters.”

SHEEPOWNERS’ VIEWS

No Departure From Decision

Of Conference

(By Telegraph. —Press Association.)

CHRISTCHURCH, January 14. “We want to make it clear to woolgrowers throughout New Zealand that the federation lias never departed from the decision reached by the woolgrowers conference held in Wellington last June, which was that the increase, in price granted in May by the British Government should be paid out to growers in full," said a statement issued today by the executive of the New Zealand Sheepowners’ Federation. Many messages from all parts of tlie Dominion were received at the federation's office asking ior an explanation of the wtand officially taken by the growers’ representatives. The statement continued that there had not been any departure in any respect from the decision of tlie conference where the delegates were not only from the Slieepownei-s’ Federation, but from the Farmers’ Union and tho Meat Board. Tlie Farmers’. Union and the sheepowners were unanimous in the decisions reached, and they had been in close collaboration since. “The growers’ representatives, have not at any time accepted the principle ot the pooling system, and have been detinitely opposed to the principle of stabilizing the price wool for local domestic consumption al the expense of. the woolgrower only,” said tlie federation. Suggestions had been made for stabilization within the woolgrowing industry. J Lbat has already been accomplished, tbe executive stated. “New shearers and shed hands' and musterers and drovers awards have been completed by agreement on the basis of tlie .15 per cent, increase in price in accordance with the sliding scale which has been in operation for many years to the satisfaction ot both growers and workers. Hus has resulted in a substantial increase in wages this season compared with last year in all cases, while further substantial rises m wages pavable for ordinary farm labour have been" made. The increase for tlie lowest paid adult worker has been from £2/5/- to £2/17/6 weekly with board and lodgings found. , „ “It will be seen from these figuirs that t/he woolgrowing industry is still prepared to stand on its own feet and manage its own affairs and. make arrangements with its workers in a lull agreement, tlie basis of which has been for so long Hie price of wool ami Hie a e, 'no'\lodgment that the workers arc entitled fully to share in any improvements in conditions in the industry.” . The federation stressed that Inc .Minister of Agriculture, Mr. Barclay when making his announcement at Oainnrii had stated the terms of a recommendation onlv. He had said. “If the Lovernnicnt accepts the rccoinmcndations.. om he had not given the Government s decision and had not slated that, the reeommendntions had been adopted. I,c opinion is apparently held by some pt Jsons that tlm Stabilization Committees recommendations have been adopted >5 the Government, but this, however, is not the case,” tlie statement concluded.