Price of Woolpacks

Northern Advocate, 9 August 1938, Page 6

Price of Woolpacks

[Special to “Northern Advocate/’t WELLINGTON, This Day. i “I am quite confident that if the price fixing regulations were revoked the selling price of jute packs this season would not have been less than that fixed by the regulations." said the Minister of Industries and Commerce, the Hon, D. G. Sullivan, in an interview yesterday. The minister said it had been brought to his notice that the present selling price ot jute wool packs to farmers was considered to be duo to protection given to the New Zealand Wool Packs and Textile Company at Foxton. This impression, he added, was at variance with actual facts, as a review of prices over the past few years would clearly show. Mr. Sullivan said the price of wool packs, both jute and the locally made article was fixed on May 13, 1936, by Order in Council at 3/4 for 42-inch packs at main ports, and when sold for inland points it was permissible to add reasonable transport costs. It was generally known that the’ present c.i.f. price of jute packs from Calcutta was due to a price war among the smaller mills. New Zealand Packs. The minister was advised that a textile bag factory In New Zealand explored the possibility of manufacturing jute packs from imported jute cloth but it was found that the finished i article could be landed cheaper than the cost of sufficient length of cloth required to make the particular article. At a conference held by the Depart- : ment of Industries and Commerce with stock and station agents three months ago. Mr. Sullivan continued, it was stated that the landed cost of jute packs ranged as high as 2/10i. On the basis of-a free market, the price would not have been less than 3'4. A Safeguard. < t “The stock and station agents are assured of a reasonable profit for distribution and ffi'e not subject to the difficulties which have been created in past years, by the intrusion of speculators in the jute market,” the Minister continued. “One factor which is overlooked at present is the insurance that is provided for the sheepfarmer to obtain packs in the event of a national ’ emergency, or the beat from Calcutta being delayed or failing to reach New Zealand through various causes."

Mr. Sullivan said that a number of favourable comments had been received on the quality of the New Zealand made packs. He was advised that a definite preference was now being shown for the flax packs as against the iirlportecl jute packs. The initial difficulty which the company had experienced in regard to the quality and weave of the packs had been overcome by the installation of the latest type of textile machinery.