BRITISH WOOL PRICES

Gisborne Herald, Volume LXXII, Issue 21602, 3 January 1945, Page 4

BRITISH WOOL PRICES

PRESENT LEVEL HELD RAYON FABRIC QUOTAS (10 a.m.) LONDON. Jan. 2. The Wool Control announces that wool rations for the British civilian trade will be issued at to-day's prices for a further period extending to June 30. When that date arrives, wool issue prices for the British civilian trade will have remained unchanged for more than four and ahall' years, almost certainly a world record period for wool price stability. This has been possible only because the British authorities have virtually subsidised for more than uvo years the prices at which Dominion and British wool has been released Tor internal civilian consumption. The present wool issue prices for the home trade in Britain are based on those at which the British Government bought the Dominion clips at the outbreak or the war. and although in 1942 the wool price paid to thi- Dominions was increased by 15 per cent in view of increased production and other costs, that increase had not yet been passed on to the British public. Presumably, the cost involved is met by one of several subsidies which the United Kingdom Government is known to be paying or. certain commodities in order to keep down the British internal cost of living. although no official announcement to this effect has been made. No l’rico Advantage It should be noted, however. Hint the full wool price paid to the Dominions is paid by other countries who buy that wool and is also paid by the British manufacturers when buying wool for overseas trade in yarn or cloth. This latter is necessary so that British manufacturers shall have no price advantage when competing with other nations for overseas trade, and the wool rationing organisation here makes it a simple matter for British mills to pay one price for wool for export trade. Wool is by no means the only commodity regarding which this stale of affairs obtains in Britain to-day. How does Britain's subsidised internal price for wool affect the Dominion growers' interests? Chiefly, it lias a very desirable effect on strengthening the already high popularity enjoyed bv wool goods in making them available in Britain at prices which would not otherwise be possible. As cotton, which is used in utility goods, is also subsidised, the present internal price for wool maintains the comoetitive relationship of wool with other clothing fibres. Woolgrowers will welcome the news of (lie further restrictions on rayon staple fibre use in British wool textile production. Staple fibre rations have beoii hitherto available for any purpose selected bv the manufacturers, im! the Wool Control now directs that such rations may be used only in a lew specified products. Applications bv wool textile firms for ravon cal ions will, in luiure. he considered only from firms which are now etiiilled to uch raFnns, which means that the firms who have not used it in tlie past will have no access Lo it until tlic rationing restrictions cease.