WOOL INDUSTRY

Greymouth Evening Star, 26 July 1945, Page 6

WOOL INDUSTRY

BRITISH CONTROL LESSENED. (N.Z.P.A. Special Correspondent) (Rec. 9.25 a.m.) LONDON, Ju’-Y 25. After nearly six y ears ’ 11n ,„pH m which they had not been allowed to own a single bale of wool o\\ g t the nature of war-time con F o L’.+mn merchants and top makers in Britain to-day are acquiring then fiist sup plies under a scheme which pa“iarestores their ability to trade as com mercial units. This does not ir £P Ta relaxation of control, but rnakes wool merchants and top niakas to of fide links in the chain of supply or raw material to th e industry, and a lows them a permitted profit within the structure of strict P r * c , e COI J I ° and quantity rationing. They take over part of the duties which since 1939 have been solely discharged, by Wool Control. Half the requirements of the industry in the current July October ration period will be supplied by traders operating on then own account, and the other halt by Wool Control. If the scheme succeeds, the proportion passing tnrougn trade hands will be increased in subsequent periods until the point is reached where all requirements should be supplied through trade channels’. Even this would not necessarily imply the end of control, as price and quantity regulations could be enforced with all material passing through trade hands. . There is reason to believe that wool firms in Bradford are availing themselves of these newly offered trading facilities to the fullest possible extent, although many difficulties must first be overcome. Labour shortage represents a serious problem to firms which have had little or no commercial, activity in recent, years. Another difficulty in some cases may be that of financing wool which has greatly increased in value since these firms were last permitted to own stocks. A given weight of wool today requires twice as much financing as before the war, although this is offset in a sense by the fact that firms may only take up limited quantities for the present. Firms may not buy to stock, but may only buy the ration which is certain to be wanted in the current four months. Authorities know the quantities and qualities of wool needed to carry out the official production programme in wool goods, and will allow raw material firms to buy only the types required for this purpose. Dominion wool growers will watch the progress of this scheme with interest, for it is necessary that wool merchants and topmakers- at Bradford begin to refunction before there can be any prospect of commercial importation as between the Dominions and Britain. Direct importation is the.probable next step in the chain of developments and if, as officially hinted, it is hoped to introduce it for the ration period commencing next November, an official announcement on procedure will be expected in the reasonably near future.