WOOL PROFITS

Evening Star, Issue 18044, 11 August 1922, Page 8

WOOL PROFITS

VERY REMOTE PROSPECT. THE EIGHT MILLION ACCUMULATION. [From Our Parliamentary Reporter.] WELLINGTON, August 10. The House showed considerable interest in the possibility —a remote one—of New Zealand securing further wool profits from the Imperial Government. . , The question came up when printed tietails of correspondence, and. cables relating to the commandeer were presented by mr Massey. These have already been pubReplying to Mr Wilford, the Prime Minister said that there was no contract in the ordinary sense with the Imperial Government for the purchase of the New Zealand clip. . „ Mr Voitch: Can yon give us the reason why the claim for surplus profits was dr h?r > Massey: We got the profits up to a certain point, £1,600,000 being forwarded to this country under that head. Light millions remained accumulated, but \vhen the serious slump occurred in the price of wool the Imperial Government was repossession of a huge accumulation which had been held—l think very improperly. Wo thought- we were entitled to share in those profits, but the Imperial Purchase Department took up the-'position that it was bound to make a much more serious loss than could bo covered by the eight millions, and it was entitled to hold that against the loss.” Mr Massey stated that there was still an accumulation of Now Zealand and Australian wool equal to three times the New Zealand clip. Mr Hawken ; Four hundred and thirty thousand bales. Mr Massey: “Yes, a, few months supply ; and it is going down steadily. That is one of the -reasons which makes me believe that- we will get a better price for wool in the future.” He was assured that if there was anything remaining of tho eight millions when realisation was complete, New Zealand would get its share. New Zealand made a particularly good bargain with the Imperial Government.

Mr Teitch -. A very loose ono. Mr Massey retorted that tho member would have a different opinion if he knew all about it. Personally, ho bad tried Ins very best to shako tho Imperial authorities.

Mr Wilford : Why, if they were the fair thing? Mr Massey: I was trying to do my best for tho country.

"The farmers in New Zealand have fair and just cause of complaint against the Imperial authorities,” was Mr Lysnars comment; " firs tly, because the terms were [ not respected; and secondly, because they held supplies of wool after the war when it could have been sold, this cansing a ■slump in New Zealand." He supported his first point by contending that there was a clause in the agreement whereby the Imperial authorities were to place on the open market any surplus supplies, New Zealand to get half profits. There had only been mock sale?, when good prices could have been obtained. He estimated that during the commandeer the farmers of New Zealand sacrificed £16,000,000 an- 1 nually in the sale of wool and- mutton. j Mr Witty deprecated the action of' people who kept- their wool when the people were badly needing it for clothing. He forecasted a good future for all classes of wool, it being only fashion that inte-n-, sified the demand for the finer breeds. j Mr Hawkcn said that, unfortunately, the judgment of the Imperial authorities was at fault. In his opinion they were justified in holding the profits of £8,000,000 to recoup subsequent losses. There was no question that the Imperial authorities had made a mistake of great magnitude. The trouble did not end in the losses at Home, but also depreciated the flocks and future prices. The whole dealing illus- i trated the fallacy of a Government undertaking each d -business. To-day, two - years after .this mishandling, wooi was only two-thirds of the pre-war price, though it was improving. The difference in merino and cross-bred was not justified, and it would be a good thing for New Zealand if thq people would wear their own productions. Ho predicted that cross-bred wool would reach its pre-war price next year, and then rise higher. I Mr E. Newman thought it must bo ad-' raitted tlyt the Imperial Board handled the wool badly; but it was very uncertain if Now Zealand bad a legal claim. Know- j ing the mind of the woolgrowers, ho was j certain that there was no desire to go to j law for the outstanding profits. 1 Mr M'Oallum paid an unqualified tribute to Mr Massey's efforts on New Zealand’s behalf. The whole trouble arose through, a change of policy. It was originally intended that only wool for war purposes should be commandeered, but, owing to shipping difficulties, it was decided to surrender the whole dip, and who could say that it did not appear as a sound and wise policy? _ _ | Mr Massey, in concluding the debate, | said tb-at he wished to clear up the impression that New Zealand was to get a! profit on the whole of the wool. The arrangement was that we were to get a share of the profits on any wool not needed for Army purposes. When the war ! came to an end we were entitled, of course, to half profit on' flic whole clip, but it was then, unfortunately, that the slump came. I