COSTS MUST COME DOWN.

Evening Post, Volume CXI, Issue 35, 11 February 1931, Page 12

COSTS MUST COME DOWN.

The president of the Australian Graziers' Association (Mi-. F. H. Tout), commenting on the rise in the fine wool market, said the improvement was very welcome, but it was too soon yet to state definitely that it meant the turning of the tide. ■ - ■ '. ' "Welcome as the rise is, I would point but that at the improved prices wool is still selling very materially below the costs of production," Mr. Tout said. 'A 10 per cent, rise when wool is approximately only 7d per lb, as it was last week, is nothing like the equivalent of a 10 per cent, rise when wool is 20d per lb. There will have to be much more improvement before graziers, at present; costs of production, even hold their own. "As growers and' trade authorities see it, there is no real hope for the industry until all costs are substantially reduced. The Seise in the wool market must not blind anyone to the necessity of bringing the costs down into conformity with world wide economic conditions. To lessen our efforts in this direction now, just because the market has improved to some little extent, would be to go on endeavouring to live in a fool's paradise." GROWERS WANT FIXED PRICE. A conference of' over 500 woolgrowers of Western Australia resolved to call upon the Government in the interests of Australian finance, to take immediate steps to save those engaged in woo) production. 3?he conference asked that the Federal Government take legislative action immediately to enable a fair and appraised minimum price, to be fixed on. wool for the 1931-32 season, consistent with the cost of production. It was decided to request v the Federal Government to hold a referendum on the following, proposals:— (1) All wools to be valued by wool brokers and experts on the basis of 20d per lb for fair to good 64 merino wool, which means about 16d average. (2) Values to be minimum reserves on all wools received into store. (3) The grower may put a reserve on his wool, but it must not be lower than the values assessed. (4) Any grower desirous of shipping wool to give an undertaking tb,at it will not be sold under the values assessed. (5) The Wool Council to deduct' 1 per cent, on all wool for1-, necessary expenses incurred, such as officesj management, and erection of necessary wool stores. (6) No wool outside, with the exception of to be 'cold privately by any grower. (7) Arrangements to be made with the Commonwealth Bank, in conjunction with associated banks, for the issue of bills of credit for the amount required, up to 6d per lb for all wool. (8) The Wool Council to approach South Africa and New Zealand with a view to their adopting similar arrangements.