WOOL INDUSTRY

Otago Daily Times, Issue 25802, 24 March 1945, Page 2

WOOL INDUSTRY

RELAXATION OF CONTROLS LITTLE PROSPECT OF EARLY RELEASE (N.Z.P.A. Special Correspondent) LONDON, Mar. 21. Commercial circles here wonder if any wool trade significance is attachable to recent official statements that as many as possible of Britain’s wartime controls will be relaxed alter Germany’s defeat. They see little prospect of an early release from wool control in one form or another, although they hope the precise form may be modified as circumstances permit. Wool and wool textiles form one of the most rigidly controlled idustries in Britain, although the purpose of control is often misunderstood by many in the industry. Possibly some dominion growers, as well as British users, believe that the prime purpose of Britain’s purchase of Empire wool clips is to ensure an eauitable war-time distribution of supplies. A greater possibility is that the clips were bought chiefly, first, to ensure that all the wool needed for the war would be forthcoming as required, and secondly, to prevent Empire wool from reaching enemy hands by some circuitous route. The distribution for civilian purposes is secondary to these two vital purposes. After five years and a-half of war, however, world conditions have undergone such vast changes that the wool and allied trades here, although anxious for the earliest possible restoration of complete trading freedom, see problems ahead which can be solved only by a continuance of some form of official guidance and direction. The indications are that the immediate post-war period will see a surfeit of wool, estimated by some authorities to represent one year’s world consumption, and an acute shortage of woollen goods in many quarters of the world. Trade opinion here is that if those two were allowed to come together without any over-all guidance there could be no guarantee that world needs would be met according to the urgency or requirements, and there might also be danger of exploitation. No surprise was felt, therefore, at the recent official announcement that clothes rationing in Britain is to be maintained for some time after the war.

Opinion in trade circles is that the authorities intend to decide the proportions of British woollen mill production which will go into the home market, the export field, the relief of needy countries, etc. This form of direction, it is believed, may not be confined to Britain. The question now under consideration by traders here is how far this necessary direction of output may be consistent with somewhat greater freedom in individual trading than has been possible to wool firms since the outbreak. Control temporarily put out of business hundreds of wool importers, merchants, and topmakers in Britain who will look for an opportunity to resume private trading when the war in Europe is ended, nor would this be deemed impracticable under directed production.