PRIMARY PRODUCE

Otago Daily Times, Issue 23810, 17 May 1939, Page 6

PRIMARY PRODUCE

CONTROL OF MARKETING WOOL POOL SUGGESTED EMPIRE ORGANISATION NEEDED (Per United Press Association) AUCKLAND. May 16. Control by the producers instead of by the Government in the marketing of primary produce was urged by the Dominion president (Mr W. W. Mulholland) at the opening of the thirtyninth conference of the Auckland Provincial Farmers' Union. Captain H. M. Rushworth. provincial president, was in the chair. Mr Mulholland said the producers to-day were faced with two issues, the day of independent marketing having passed. This condition was common to other countries, too. Referring to Government marketing of dairy produce, he said there was much that was goud in it. but the principle was wrong. "It should not be in the hands of a Minister of the Crown." he said. "Political control of marketing is worse than political control in any other walk of life." Learning from what, had already occurred, farmers should prepare the necessary organisation to take over the marketing of meat if that became necessary—a situation that, in view of recent restrictions, might come much sooner than expected. Referring to wool, Mr Mulholland said the auction method of sale wa? probably the best so far designed, but the fluctuations were so great that l* was impossible to estimate ahead what the returns would be. In that regard the producers of synthetic fibre had a decided advantage, being able to quote one or two years ahead. "Price fixation is an impossibility, of course." Mr Mulholland said, "but it is possible to attain some degree of price stabilisation with some elasticity." When In Sydney he had discussed the matter, and the conclusion reached had been that what was necessary was an Empire link-up of wool producers as a special entity. This was possible by the establishment of a pool along the lines of the exchange equalisation nool operating in Great Britain. This dool would buy the wool at the bottom price and sell the wool at top prices In between, ordinary trade would operate. Such a pool would, over a period of vears. make enormous profits, and effect the desired stabilisation of prices.