WOOL PRICE

Greymouth Evening Star, 20 June 1942, Page 2

WOOL PRICE

MR. BARCLAY’S STATEMENT.

WELLINGTON, June 19. In a statement to-night the Minister for Marketing (Mr. Barclay) said that at no time had it been suggested that the Government would not pay to woolgrowers the addition--15 per cent? rise in the price granted by Britain. The point at issue was whether in the country’s interests full payment should be made immediately or whether a portion should be held in reserve for future disbursement to the industry. The Secretary of the New Zealand Treasury (Mr. B. C. Ashwin) had reported that in his opinion the full payment of the increased price to woolgrowers at present would result in a definite inflationary tendency. The report stressed that the increase of 15 ner cent, in the price of wool sold to" Britain would mean an additional payment to producers m New Zealand of from .£2,250,000 to £2,500,000, and that against this extra money no additional goods could be provided. The additional payment would merely intensify tne demand for the restricted supply of commodities available . under wartime conditions, and this would have an inflationary effect. The Liberty Loan just completed had as its object the raising of £15,000,000 for "war purposes, but the reduction of spending power was of almost equal economic importance as the finding of the money. Mr. Barclay said the whole basis of New Zealand’s attitude to the war effort was set out in the agreement with Britain for the sale of produce for the duration of the war. It was then stated that the New Zealand producer had no desire to make, a profit out of the war and that the only increases required would be those necessary to cover increased costs. In recent months other sections of primary producers and wage-earners had found it necessary to approach the Government for increased payments to cover additional costs, and, in meeting these requests, the Government had acted in accordance with its basic policy, namely, to grant only those increases necessary to offset such additional costs. “It is therefore suggested that the woolgrowing industry, in respect of any Immediate payment to be made to producers, should come into line and should at present receive only that proportion of the increases granted by Britain actually necessary to cover increased costs incurred during the war period,” said the Minister. At no time had it been suggested that the proportion to be withheld should necessarily , remain with the Government, he said, and in fact, it had been proposed that the industry itself could, if it desired, create its own trust fund as a reserve against any unforeseen contingency and for payment to woolgrowers at a later date. The Minister said, the question of the price of wool for local manufacture was an entirely separate issue. The increase of 15 per cent, had been granted only in respect of wool exported to Britain and there was no valid reason why the armed forces and public of New Zealand should be required to grant a similar increase in respect of wool necessary for local wool manufactures. The Government, through its policy of stabilisation, had been more successful than most other countries in keeping prices down during the war period, and the advantages of that policy were enjoyed by all . sections of the community, including the woolgrowers themselves. For this reason, it was the Government’s intention to maintain the local price of wool, as with other stabilised commodities, on the basis fixed at the outbreak of war.

SOUTHLAND VIEWS

INVERCARGILL, June 19. Opposition to comments made by Mr. H. H. Meredith, of Waimate, chairman of the South Island Dairy Association, about the increase in wool prices, was expressed at a meeting of the Southland provincial executive of the Farmers’ Union to-day. At the annual conference of the association at Invercargill on Thursday, Mr. Meredith said that as a woolgrower he was not happy about the increase, and it would have been a fine gesture if woolgrowers had declined the offer of a higher price. The following motion was carried: “The dairying' committee of the union takes strong exception to the remarks of Mr. Meredith in his address to the Dairy Association’s conference. Mr. Meredith’s personal opinion does not represent the considered opinion of the dairy farmers of the South Island. Members of the Farmers’ Union stand foursquare for the principle of wool price increases being passed on to all primary producers in order to offset ever-increasing costs.” “I am downright opposed to the policy of nipping a little bit off the farmers’ earnings,” said Mr. J. Johnston in proposing the resolution. Several members spoke of the fine spirit of co-operation existing between sheep and dairy farmers and deplored any suggestion of differences between sections of primary producers.

MARLBORO’ OPPOSITION.

BLENHEIM, June 20

The Government’s proposal to retain part, of the 15 per cent, increase in the wool price, was unanimously condemned by a representative meeting of sheepowners and farmers, last night, on the ground that it was grossly unfair to make a levy on one section of the community, without making similar demands on every other section, particularly in view of the fact that the New Zealand Government was not directly responsible for obtaining the increase, which was clue to representations by Australia and South Africa. The meeting further resolved to oppose vigorously the Government suggestion exempting New Zealand woollen mills from payment of the increase, thus subsidising the mills at the full expense of the sheepfarmers. The motion that failing satisfactory reply from the Government, the United Kingdom Government be asked to retain the increase for war relief at home, was defeated.