“STATE OF CHAOS”

Greymouth Evening Star, 4 November 1939, Page 11

“STATE OF CHAOS”

NEW ZEALAND WOOL TRADE. WELLINGTON, November 3. The wool business in New Zealand is in a state of chaos and uncertainty. Growers and ‘brokers are completely in the dark in respect of the appraisement of the clip regarding which no decision can be got from the Minister of Marketing. In the meantime shearing is in full swing in most parts of the North Island and in many districts in the south, and much wool is being received into the stores.

Under normal conditions of trading woolbrokers’ staffs at this time of the year are working up to full pressure receiving; stacking, and preparing wool in the stores for display to buyers. This year the British Government is the sole buyer, the New Zealand Government acting as its agent. Some weeks ago the Minister of Marketing announced that an average price of 12iid a lb was to be paid for all New Zealand wool; but whether this price is in store or f.o.b. is not known. It is not known whether it is known to the Minister himself.

Certainly, the wool trade of New Zealand is completely in the dark on this point, as well as on many others. Up to the present, the New Zealand wool-brokers have been unable to get any official decision that will let them know where they stand and enable them to get on with their all-impor-tant work.

V.'ith the exception that there are to be no auctions and there is only one buyer—the British-Government —everything that has to be done in a normal wool season has still to be done and that means an immense amount of detail and hard work. The first sale usually opens in Auckland on November 26 or 27, and before Christmas sales have been held in six centres, dealing with up to 150,000 bales of wool.

“DREADFUL TANGLE.” “Everything on our side of the business is held up at present,” said, one prominent, woolbrokers’ representative yesterday. “The wool industry is in a dreadful tangle, that is really terrible to think of. Loss of. time and waste of money is going on right and left, but the brokers cannot do anything about it because they cannot get anv decision from the Minister.”

The broker explained that the work of appraising the wool was an intricate task calling for a high degree of skill. The named price of 12Jd was an all-over average for the clip, which included many kinds and grades of wool. During the last war there were some SOO grades and it is understood that more than that number will be recognised this time. The Australian clip is divided up into 1600 grades. To enable the work of appraising the wool to be started schedules of prices, based on the average of 12|d, .would have to be marked out. The, wool-buyers would act as appraisers for the Government, and it w r as understood they were to be paid a lump sum for their work. On the other hand, the woolbrokers, acting on account of growers, would make their valuations. If the matter were left to the trade, two men conversant with the intricacies of the wool business could settle the whole business in two days. The existing delay and uncertainty was completely upsetting the business and was likely to cost hundreds of thousands of pounds. To some extent the position in Australia was being held up by the lack of official decision in the Dominion. 'Pho same broker pointed out that sheepskins and hides had been accumulating in stores in New Zealand since

September 1, and from the point of view of the farmer the position was serious. No auction sales had been held since that date, Government regulations providing that sales were not to he made in excess of the prices ruling at September 1. Fellmongers and others had been demanding skins at those prices and the owners had to SC It is reported that between 50 and 60 casual workers have been dismissed from the Auckland wool stores owing to the delay in completing appraisement details.