WOOL PROFITS.

Northern Advocate, 22 April 1921, Page 4

WOOL PROFITS.

ABOUT THE £8,000,000

Among the matters that will receive the attention of the Prime Minister in London next month, will be the claim of New Zealand farmers aga/nst the £8,000,000 of undivided wool profits now in the hands of the British Government. This profit was made on the sale of New Zealand wool bought under the requisition scheme. The Imperial authorities state that it will all be absorbed by the losses that will be made on the realisation of the unsold portion of the requis.tioned wool. Mr Massey is likely to argue that each year's wool transaction ought to be treated separately.

It has been stated that the NewZealand farmer's claim Ns for half this undivided profit. The claim, aa a matter of fact, is for more than half. New Zealand sold wool to the British Government under the original contract at a fixed price, plus half the profit made on any wool resoM for civilian consumption. The same arrangement was made by the British Government with Australia. During one of his visits to England M? JVlassey found that a very much larg er proportion of New Zealand wool was being used for military purposes than of Australian wool. He pointed out that this was unfair to *New Zealand growers, who were suffering financially because their wool was specially suitable for military purposes. The .British Government agreed, iu response to Mr Massi-y's representations, that after March 31, 1918, New Zealand wool wa-3 to curry tho same profit as Austvahui wool, pro-, vided that the profit was in the wool. ii Australian wool was sold at a profit of £4 per bale, the Australia! growers' share of that profit would be £2 a bale. The New Zealand grower then would be, entitled to a profit of £2 per bale. ; He would take., all-the ■profit if it did not amount to 'more than £2 per bale. He would make £2 and the British Government would take £1 if the profit amounted to £3. K the profit amounted only to £1 per bale, then the New Zealand grower would get that amount. Under th's arrangement the New Zealand growers would receive the whole

of the 1918 profit, not half of it