LEVY ON WOOL

Otago Daily Times, Issue 22352, 28 August 1934, Page 8

LEVY ON WOOL

THE PROPOSAL DEFENDED COMPETITION FROM FIBRES STATEMENT BY PRIME MINISTER (Peb United Press Association) CHRISTCHURCH, August 27. A defence of the Sheep and Wool Improvement Bill, which is before the A. and P. Committee of the House of Representatives, and which authorises a levy on wool for investigation and publicity purposes, was made by the Prime Minister (Mr Forbes) to-night. The Prime Minister said that, although he was pleased to note the support of some sections of the sheep farmers, he would point out that there was a heavy responsibility on those who were opposing this opportunity for the wool producers to combine for action in the interests of their industry. In some of the criticism which the Bill had met there was evidently some misunderstanding of its intentions and provisions. It was not in any way a Government-controlled scheme, but left whatever action was considered necessary entirely in the hands of the wool growers themselves. The Bill made provision for a fund which was being placed at the disposal of a committee on which the industry itself predominated, seeing that the wool growers comprised five out of a committee of seven. The remaining members of the committee were drawn from the Departments of Agriculture and Research, and this ensured that it would have at its disposal all the resources of those departments. The producers must realise that Germany, Italy, and other industrial countries promoted the use of synthetic products manufactured by themselves instead of wool, and at present they were using every effort and' were calling in the best brains possible to achieve that end. What was aimed at, said Mr Forbes, was the provision of a fund which might be termed a wool defence fund, which would be placed in the hands of an organisation representative of the industry itself to be used to safeguard the interests of wool against the onslaught of alternative textiles and to increase its use in other directions. The period of duration of the Bill was set down as five years. He felt that the small amount required by the levy of 4d per bale represented but a trivial proportion of the extra amount which the wool-growers were receiving by way of increased returns through the rate of exchange. It would make available, however, a fund which could be used for publicity and for the acquisition of information regarding improvements likely to be beneficial to the industry. The levy was unlikely to become a burden upon the growers, The average size of a New Zealand flock was about 1000 sheep, and therefore the levy payable by the ordinary sheep farmer would amount to only a few shillings. Such a charge could not bo regarded as onerous, A committee had been set up in London to promote an Empire-wide programme in connection with wool. He had received a letter from Lord Barnby supporting the suggestions and asking for the co-opera-tion of New Zealand and the other dominions with Great Britain in this programme. At present in a world abounding in international obstacles to trade it would be satisfactory if at least New Zealand and Great Britain could co-operate on problems affecting the welfare of both. One of the difficulties appeared to be that the sheep farmers did not realise sufficiently that there were several definite problems for improvement; hut he would point out that a very large proportion, fully 80 per cent., of the wool brought prices fully 2d a lb less than the superior grades. The loss, in this direction alone to the country was approximately £1,500,000. The legislation proposed in the Bill provided for the investigation of these problems by a competent committee and empowered the Government on its recommendation to provide funds for dealing with these problems. Funds would be provided for any approved purpose designed to increase the demand for wool or ‘ for the investigation, collection, and dissemination of information relating to sheep and wool.” He was in full agreement with the North Canterbury Farmers’ Union regarding the importance of disease problems in the South Island, and in addition he felt that nutritional problems in many districts exercised a profound influence on the returns received by the sheep farmer. With respect to all types and classes of wool, uniformity was highly desirable, and he felt that there was a very strong challenge indeed in this regard from synthetic fibres.

In conclusion, the Prime Minister stated that he had' had ample opportunity during the last few years to see many sides of the problem. In consequence, he felt that his responsibility to the industry amply justified his introduction of the measure, which would enable it to undertake active steps to effect such improvements in all aspects of the industry as would enable it to combat successfully the competition which seemed probable in the future. The matter was, however, in the hands of the industry itself. He had no intention of forcing the Bill on to the industry if a majority of the sheep farmers were against it.