WOOLPACK PRICES

New Zealand Herald, Volume LXXV, Issue 23111, 9 August 1938, Page 15

WOOLPACK PRICES

FIXATION DEFENDED FLAX AND JUTE TYPES CONTENTIONS BY MINISTER rnv TISLKC BATH SFKCIAI. B KPORTER I WELLINGTON, Monday "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 lion. ]) U. Sullivan, in an interview to-day. The .Minister said it had been brought to his notice that the present selling price of jute woolsacks to fanners was considered to be due to protection given to the New Zealand Wool pack and Textile Company at Koxton This impression, lie added, was at variance with actual facts, as a review of prices over the past few years would clearly show. Price War in Calcutta Mr. Sullivan said the price of woolpacks, both jute and the locally-made article, was iixed on May 13, Ifl.'iti, by Order-in-C'ouncil at 3s 'ld for -12-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. 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 fount) that the finished 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 Department 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 2s IOJd. On the basis of a free market the price would not have been less than 3s 4d. The result of the price-fixing regulations had been the tendency to stabilise the industry, both in regard to the imported and locally-made product. Advantages ol System "The stock and station agents aro assured of a reasonable profit for distribution and are 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 boat 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 Zealandmade pack. He was advised that a definite preference was now being shown for the flax pack as against the imported jute pack. The initial difficulties which the company had experienced in regard to the quality and weave of the pack had been overcome by the installation of the latest type of textile machinery. ,