MR HOLLAND IN A HOLE OVER INFLATION TALK

Grey River Argus, 18 December 1948, Page 7

MR HOLLAND IN A HOLE OVER INFLATION TALK

AUCKLAND, December 17. “We are sure that the Leader of . the Opposition (Mr S. G. Holland) will take immediate steps to correct the impression left by the necessarily 1 abridged Press Association report of ■ his reference in his Christchurch address last night, to the reasons for J the very high level of prices at • yesterday’s wool sale in that city”, says a statement issued by the New Zealand Woollen Mill Owners’ As- ■ sociation. Mr Holland was reported as say- ' ing: “The Government made up the 1 difference between the upset price of ; wool and the prices obtained. That difference came from taxation. That was why prices were so high. The local mills could buy all the wool they 1 wanted at the high values, and the 1 Government made up the difference”. The woollen mill owners stated: — “.Wool is one of the few products of New Zealand which are sold at auction at world market levels. “Simultaneously with Mr Holland’s reference to a price of Sid per lb for wool at Christchurch, there appeared a press report of a price of 152 d at Melbourne. The New Zealand woollen mills could hardly be accused of being responsible for that price level. Finally, the price level uit the Christchurch sale was established by overseas buyers before any of the local mills made the purchase of a single lot. One overseas buyer for foreign interests bought at the Christchurch sale more than double the total purchases of New Zealand mills, and other purchases exceeded the local mill’s total. These buyers established a price level which the local mills were forced to follow’ .