STILL UNCERTAIN.

Gisborne Herald, Volume LXVI, Issue 20069, 16 October 1939, Page 6

STILL UNCERTAIN.

SEASON’S WOOL PRICE DETAILS AWAITED BASIS OF OPERATION Although an announcement was made on Saturday in a cable message from London that an average price of 9.8 d per lb. in English currency would be paid by the British Government for the New Zealand wool clip this season, growers are still much in the dark regarding the rate they will receive. The absence of details regarding the basis of the figure makes it impossible for farmers to make even an approximate estimate of the value of x their clips. While a price of 9.8 din English currency is equal to more than 12d per lb. in New Zealand, growers may not receive that amount, for there are so many considerations to be taken into account. Growers wish to know firstly whether the price announced will be the figure which they will receive or whether it is the rate which the British Government will pay to the New Zealand Government. On the .reading of the message, Gisborne farmers incline to the latter belief, and if that is the case they are awaiting a‘ New Zealand announcement regarding the rate their own Government will pay. the grower. Another point to be borne in mind is whether the price fixed will be f.0.b., New Zealand ports, or whether it will be the price paid for deliveries in London, for there is a wide variation in the two rates, for storage, freight and insurance must be taken into account if the rate is based on arrival in England. Until explanations on those points and a number of others that are involved are provided, Gisborne brokers were reluctant to comment to-day as to whether the price announced would be a satisfactory one. They stated that they were still very much in the dark, and were unable to gauge even approximately what the average price would be.

The average prices received for Gisborne wools in normal seasons were believed to be slightly below the New Zealand average, which last season was 9.17 d per lb., but the difference, if any, was thought to be very slight, so that for general purposes of comparison the Dominion average could be taken as a good guide for Gisborne growers, when the ultimate- average price to be paid to growers was announced by the New Zealand Government.