WOOL INDUSTRY

New Zealand Herald, Volume LXX, Issue 21399, 25 January 1933, Page 5

WOOL INDUSTRY

SITUATION IN AUSTRALIA APPEAL FOR s STATE HELP LOW PRICES AND HIGH COSTS [from our own correspondent] SYDNEY, Jan. 12 Orice again the position of the wool industry in Australia has been thoroughly organised, this time by a conference representative of the whole of the continent, and called togethef by the Federal Government. The object was to consider the report of tho special committee which had held a preliminary investigation. The result of the investigation and of the conference has been practically nil, though both have served to emphasise the gravity of the position caused by low prices and high production costs. , It is recognised that Australia can have little control over world prices for wool, but tho question of costs is on a different basis. There again the growers see no way to help themselves, and the conference ended with a general demand to the various Governments to come to the assistance of the industry. The abolition of the land tax, a reduction in railway freights and lower handling charges by Government departments generally —these are the proposals, and the representatives, of tho Governments have looked coldly upon them. As an outcome of the first day's deliberations of tho conference a special committee of Government representatives was appointed to report on ways and means of helping the industry, and the disappointment was most marked when that committee reported that it had nothing to offer. Truth to tell, the Governments find .it harder even than the woolgrowers to make both ends meet, and they are naturally disinclined to make any concessions that will affect adversely concerns that are already hard put to it to make a profit, notably the railways and tho harbour commissions. Costs of the Industry Admittedly,' the Federal financial returns so far this financial year show a substantial surplus, but it is held to be an open question whether the men on the land should derive further benefits in consequenco. Already there has been a substantial reduction in the land tax, and it is known that the Federal Government is now most anxious to assist those who pay taxation in other forms. -As Sir Graham Waddell, representative of the Australian Wool Council, pointed out, the costs of the industry have been creeping up insidiously over a long period of years. He said that they had now reached a point where they could be borne no longer. It was complained by other speakers that the Australian wool industry was labouring under much heavier burdens than the same industry in either South Africa or New Zealand. The Australian grower should not be taxed more than his rivals. In railway freights wool was burdened with heavier charges than other products.

The Minister of Trade and Commerce, Mr. F. H. Stewart, emphasised the point that wool had for many years been the mainstay of Australian export credits, and notwithstanding the low world price levels to-day it stilF maintained that relative position. Since 1925 the return for wool had been practically halved, despite the premium enjoyed during the last two years as a result, of the exchange position. It had to be realised, too, that the volume of production, at the present price, was the only check upon a further fall in the wool income. Fortuitous Circumstances

The fortuitous circumstances of a favourable season and the continuance of production by the individual grower had maintained output and prevented a fall in income below £35,000,000. In 1931-32 an increased production of 35,000,0001b. alone offset the reduced price received for the product in that year. No one could contemplate with equanimity the obverse side of the picture—the possibility of a severe and abrupt slump in Australia's volume of production at the present prices. Tlie special committee reported that in its opinion the growers had reduced the costs within their control as far as possible. They are now looking to the others, notably the Governments, to do their part, and the Governments at least are not at all keen to give way. Nor are the brokers. The brokers say that their charges have been reduced to a minimum, but it was stated subsequently that they might be in a position later to make some concessions. The growers are quite decided that it is-to the Governments that they must look for substantial relief, and they will make a further appeal through the Premiers' Conference, which will reassemble shortly.

QUOTATIONS FOR WHEAT LONDON AND LIVERPOOL MARKETS IN AMERICA LONDON, Jan. 23 Wheat.—Cargoes are inactive. Parcels are poorly supported at 3d to 6d decline. Futures.—London; February and April, 20s 9d a quarter. Liverpool: March, 4s 9£d a cental; May, 4s lOd; July, 4s ll£d. CHICAGO, Jan. 23 Wheat.—May, 47 3-8 cents a buslicl; July, ,47 5-8 cents; September, 48 3-8 cents. The New York quotation for casli is 56 3-8 cents.

TRADE WITH THE EAST CARGOES FROM AUSTRALIA Further evidence of the interest being taken by Australian shipowners in the carriage of primary produce overseas, particularly to the East, is provided by two new developments. In the first place, Australian, Tramp Steamers, Limited, which recently commenced the first tramp service operated by Australian interests, with tlie former inter-State steamer Tarcoola, has decided to extend that service by the chartering of the idle interState steamer Barunga from the Adelaide Steamship Company, Limited. • The A.U.S.N. inter-State steamer Maranoa is inaugurating a new cargo service to Hongkong and Shanghai, under the flag of the subsidiary Eastern and Australian Line. The Maranoa will take as her first cargo a shipment of wheat and flour. The Barunga will sail for Hongkong early in February with a cargo consisting mainly of flour.

HARRINGTONS, LIMITED

FURTHER LOSS ON TRADING

With an increase of £248 in gross profit to £88,488, Harringtons, Limited, photographic and radio suppliers, of Sydney, showed for the year ended June 30 a trading loss of £12,096, which is £BO7 less than that of the provious. year. A credit of £lll4 brought forward reduces the debit to £10,982, which is extin"guislied by a transfer of that amount from the general reserve. From the same reserve provision to tho extent of £2992 is made for the preference dividend for 1931-32 at the rate of 9 per cent, less tlie 221. per cent reduction from October 1, 1931.