Soaring Values Of Wool Raise New Clothing Problem

Greymouth Evening Star, 24 October 1947, Page 9

Soaring Values Of Wool Raise New Clothing Problem

[SPECIAL TO STAB] DUNEDIN, This Day.

The soaring prices at recent wool sales suggested considerable increases in the cost to the public.of the numerous garments manufactured from wool. This opinion was expressed by an executive of a firm of manufacturers.

Should the Government subsidy on wool prices be renewed this year it is expected togive some relief, at least so far as the buying public is concerned, but if no such action is taken prices may well climb to re? cord heights. The Government, has as yet made no announcement whether it is- prepared to renew the subsidy granted last year, when prices at the wool sales rose to high levels.

Future Uncertain

The opinion that the subsidy was a benefit to the public but had done little to help the manufacturer was expressed by a representative of another firm. “We have had to bear all the increased costs to date, but if these high prices continue the public will have to bear its share,” he said. “On top of last year’s phenomenal prices those prevailing this season are terriffic.” As yet. he said, it was too early in the season to know whether the prices were a definite indication of what might be expected at the later sales, but the position should be clear after the next Dunedin and Christchurch sales. The prevailing high prices were nevertheless most disturbing. A Difficult Situation With halfbred wool selling at £6O a bale, compared with the war-time price of approximately £23 or £24 a bale, it is apparent that any Government subsidy would involve a considerable sum. Other factors relevant to the probable cost of suits, costumes, underwear, accessories such as scarves and gloves, rugs, blankets and furnishing materials are the circumstance that manufacturers have, since October 1, faced higher wages costs, and the attitude of the Price Tribunal to any increase in retail prices. With manufacturers adamant in their claim that they cannot absorb further- increases in production costs and the certainty of an unfavourable public reaction to. the prospect of an increase in the already high prices of woollen goods, it appears, from statements made, that the position created by the record sales is fraught with difficulties.