WOOL PRICE INCREMENT

Evening Star, Issue 24226, 20 June 1942, Page 6

WOOL PRICE INCREMENT

CREATION OF RESERVE FUND FARMERS STRONGLY CONDEMN PROPOSAL Strong protests against the proposal of the Government to withhold part of the 15 per cent, increase in the price of wool with the object of creating a reserve fund for future contingencies were made yesterday at a meeting_ of sheep farmers held under the auspices of the Otago Provincial Council of the New Zealand Farmers’ Union. Mr A. C. Leary was in the chair. The Government’s proposals were criticised in no uncertain terms, and several speakers declared that the time had arrived when the farming community should take a strong stand and refuse to tolerate any longer the pandering of the Government to sectional interests. Mr Leary, in outlining the proposals placed before representatives of the farming community by the Minister of Agriculture, said it had been suggested that no increase in price should be paid by the local mills, which consumed approximately 10 per cent, of the Dominion production. The Minister had suggested further that if the sheep farmers did not agree to the suggestion it might prejudice them in the eyes of the Government when it came to a question of fixing the price for frozen meat.

That the suggestion of withholding from the sheep farmer a portion of the 15 per cent, increase was nothing short of misappropriation of money which the British Government had agreed to pay for a specific purpose, was the opinion of Mr James Begg, who said that sheep farmers keenly resented the suggestion. He considered that the local mills should pay the increased price. When the London market dropped they were not slow to get the bclicfit, and they should therefore pay the increased price. He considered that the Minister’s threat in connection with the price of frozen meat should be ignored, because no one yet knew what conditions the British Government would impose upon next seameat. Mr C. F. Inder said that if the increase were not handed over to the farmer, then it should be returned to the British Government. He agreed that the local mills should pay London parity. Mr Downes Roberts (Middlemarch) said the 15 per cent, came from the British taxpayer for a specific purpose, and unless utilised for that purpose it should be handed back’ to them. A large number of high-country farmers needed the extra money badly. Mr Begg: “ Many of them cannot pay rent and mortgage interest at today’s wool prices, and this 15 per cent, increase will help a little. Over a period of 50 years wool prices had not advanced.” ' ( Mr Arthur Craig (Greenfield) pointed out that the cost of production had materially advanced. If a reserve fund were established, then they should insist upon the Government putting up a similar amount from the Consolidated Fund. After further discussion, the Chairman said he felt that the whole scheme was illogical. The extra 15 per cent, was passed on to the English taxpayer. Why should it not be passed on to the Ndw Zealand taxpayer Y It looked as if the now realised the necessity of controlling the money coming into the country. He appreciated the fact that-low-country men had their difficulties, but the high-country men to-day were “ right up against it.” and needed every penny they could get.,- - The following resolution was carried unanimously :—“ That this meeting emphatically protests against the Minister’s suggestion that half the 15 per cent, increase for the 1942-43 wool clip be retained by the Government for a reserve fund. This increase was specifically granted to offset the increased costs of production, and in the opinion of this meeting the Minister’s suggestion would constitute a breach of faith with both the British Government and with the New Zealand sheep farmer. This meeting considers that the increase should also apply to the wool supplied to local mills, as it has always been a recognised principle that local mills pay overseas parity. If it. is right for the British taxpayer to pay a 15 per cent, increase in order to help increased costs of production in New Zealand, then, in our opinion, it is equally right that the New Zealand taxpayer should pay for the'same increase. We strongly protest against the New Zealand woolgrower being penalised for the benefit of the rest of the community.” PRICE SCHEDULE. Mr Downes (Roberts said he felt that the time had arrived when the schedule price for fine wools should be increased, A small reduction in the schedule price for, coarse wool would mean a large increase in the price for fine wool. Mr A. C. Cameron said that this had been agreed to at the last Dominion conference of the Farmers’ Union, and a recommendation made to this effect, and Mr R. S. Thompson (Lawrence) added that, to his astonishment, the whole conference, consisting largely of coarse woolgrowers. had agreed to this. Mr Begg stated that the Sheepowners' Federation had also agreed to it.

It was agreed' that the matter be again taken up with headquarters, and, if necessary, brought up at the forthcoming Dominion conference of the' New Zealand Farmers’ Union.