EMPIRE WOOL DEAL

Gisborne Herald, Volume LXXIII, Issue 21963, 6 March 1946, Page 6

EMPIRE WOOL DEAL

RECORD TRANSACTION NEW ZEALAND'S RETURN What has been described as the world’s largest commercial transaction in respect of a primary product in J British wartime purchase of wool under the appraisement system— completed its sixth successive year on June du, laao. In those six seasons 21,025,000 bales of wool were appraised in Australia ancl New Zealand at the big sum of £4UU,utw 000, of which New Zealand received £112,090,000. . _ , , , These figures are quoted in Dalgety s Annual Wool Review, which states that the success of the Empire wool plans meant much to the Allied war cuoi l, and had been of the greatest importance not only to the wool industry itself, but to the Commonwealth and the Dominion. “Never in the long history of Australian wool production have groweis enjoyed such a lengthy period of stabilised prices, and never before has every pound of wool grown in Australia and New Zealand been as efficiently and as effectively Handled at the seat of production,” states the Review. Figures reveal a huge turn-over, and the wool money so promptly put into circulation has played an even greater part in ensuring Australia’s financial stability and solvency during the war period. Benefited From 1914-18 Experience “Admittedly the present scheme benefited from experiences gained during the war 1914-18, when, after auctions proved impracticable owing to the collapse ol shipping facilities, the British Government stepped in and purchased the Australian wool output for three ancl a half seasons, and the appraisement scheme was devised and developed. At the same time, there is little comparison between the magnitude oi the operations to-day and during the former period of control. Australian wool Production enormously increased in the interim. while the entry of the Japanese into the war on the side of the Axis increased the difficulties of getting the wool to the world’s mills. “The secret of the successful operations lies in the fact that although under control by an executive body, the actual working of the scheme was in practical and experienced hands. In the wool appraisement period, which started in 1939, New Zealand s wool production increased from ool.oiz bales, of a gross value of £15,828,000 to 1,038,000 bales of a gross value of £22,013.000. At the same time the average price per bale rose from £lB 7s 4d to £2l 4s Id in 1944-45. By way of comparison. the average price per bale for Australian wool rose from £l7 lbs od to £2O 0s 8d in the same period, though in 1942-43 it reached a peak of 1-30 i is -d.