BRITISH WOOL TRADE

Gisborne Herald, Volume LXXI, Issue 21548, 30 October 1944, Page 4

BRITISH WOOL TRADE

ISSUE PRICE REDUCED GOODS FOR EXPORT BRADFORD, Oct. 3. The wool control organisation announced on October 2 a diminution of various war charges, including war risk insurance. It enables the authorities to reduce the issue price ol wool for export and nCvv schedules operate here from October 1. This is the first price reduction in Empire wool since it passed under control at the beginning of the war. The reductions apply to wool and tops exported as such, or when supplied to British spinners and manufacturers for export as yarn or cloth. The reductions range from approximately 5 per cent to 10 per cent on the prices lately ruling for export and vary according to type and quality. Those modifications of selling price do not affect the price received by the Dominion growers for their clips, but arc facilitated entirely by the reductions in .War., charges to which wool becomes subject after leaving the grower. The news will be welcomed by -New Zealand wool growers, who', without loss to themselves, see their commodity made commercially rnOre attractive to world users. Civilian Trade Unaffected The new prices do not apply to wool released for the British internal civilian trade, the ..existing prices for which remain unchanged. The probable reason is that wool for Britain's domestic trade already enjoys the equivalent of a subsidy. When the British Government two years ago began paying 15 per cent for Dominion wool clips this price increase was not passed on in the British civilian trade, presumably as part of an official plan to avoid increased British living costs. The increase paid to Dominion growers was necessarily added to the export price and to the price at which wool is supplied to the British manufacturers for . export as cloth. The present position is that the existing wool prides for the British civil trade are alreday lower than those at which Dorpinio'ri wool is available for export, even after the reductions announced in the latter on October 2, and tlfit is the probable reason why the British home trade does not share these wool price reductions. The Wool trade view here is that these reduced wool price's will enhance world confidence in the Empire wool price level by demonstrating the official desire to give world consumers the advantage of any possible price reduction. Britain to-day owns the bulk of the world’s exportable wool and has always regarded her vast wool holding as a world trust to be administered for the common good. The modified prices are welcomed by exporting manufacturers here, and also by overseas buyers of British woo! goods, all of whom regard them as of value in promoting an increased British export trade in woollen got.ls [at the earliest possible moment after the war. •