SALE OF WOOL

New Zealand Herald, Volume LXXIV, Issue 22864, 20 October 1937, Page 16

SALE OF WOOL

THE DRAFT ALLOWANCE

MOVE FOR. ABOLITION LEGISLATION AT EARLY DATE [BY TKLKGU W'lI —SPECIAL ItEI'ORTER] V ELLING TON, TUcsday Tho elimination of the draft allowance of 1 per cent in favour of tho purchaser when wool is sold is provided for in a Sale of Wool Rill, which is to be introduced in the House of Representatives at an early date, probably to-morrow. Details of the bill were explained to members of the Government Party at a caucus this morning. For several years New Zealand sheep growers have been advocating tho removal of the drait allowance oil wool, and a suggestion that steps should bo taken to have it abolished was made in a question asked in the House during last session ol Parliament. OBSOLETE CONCESSION ACTION IN AUSTRALIA The draft allowance on wool is regarded by sections of the industry as just as obsolete as the custom of the baker|s dozen. It'is a concession dating back to the days of faulting weighing apparatus. By it tho seller is obliged to make an allowance of wool varying from lib. to 21b. on every 1121b. of wool sold. Tho allowance varies in different countries, being lib. in the hundredweight in New Zealand and Australia, 21b. in tho United Kingdom and is taken into account with tho tare in South Africa. Australian interests have fought strongly for some years for tho abolition of tho allowance and legislation to this end will come into forco throughout the Commonwealth on July 1, 1938. New Zealand growers have from time to time supported tho Australian associations in their efforts and had obtained assurances from tho Government that it would abolish tho allowance as soon as the_ Federal arrangements for its abolition were completed. Tlio move by Australia has been strongly opposed by the buyers, particularly the Bradford Wool Federation, which claimed that abolition of tho allowance would disorganise every phase of the industry and cause temporary chaos. It is considered by growers that the loss of tho allowance will probably necessitate some adjustment of the buyers' basis for purchase, but tho general opinion is that this difficulty lias been exaggerated. At the present wool prices the abolition of the allowance would mean a saving of from 3s 9d to 4s on a bale of New Zealand -wool.