DOMINIONS’ WOOL

Otago Daily Times, Issue 25964, 3 October 1945, Page 2

DOMINIONS’ WOOL

THE DISPOSAL SCHEME REGULATED MARKETING (N.Z.P.A. Special Correspondent) (Rec. 8.45 p.m.) LONDON, Oct. 2. The Bradford wool trade is surprised that certain sections of the Australian trade entertain misgivings that the Dominions’ wool disposal scheme may tend to foster ideas of permanent bureaucratic control of wool. There are no such fears, so far as the United Kingdom is concerned, for it is felt that, wisely administered, the disposal scheme affords the quickest oppprtunily for a return to complete freedom, and the trade in Britain would be expected to resist strenuously any attempt to use the machinery for disposal of accumulations as a lever to introduce permanent bureaucratic control.

The trade in Britain has always been suspicious of marketing schemes which sought to maintain artificial conditions by restrictive marketing practice, but the disposal scheme is placed in an entirely different category. It is recognised that regulated marketing must be undertaken if chaotic conditions are to be avoided, but the official report makes it quite clear that it is not to be restrictive marketing. On the contrary, it is to be marketing on lines calculated to promote increased consumption of wool. The price level will be “reasonable.” and this is interpreted to be one which will avoid depression values on the one hand and artificially high values on the other. Australia Seeks Assurances Traders in Britain are surprised to learn that sections of the Australian industry are reported to be seeking assurances that future appraisement values will not fall under current levels The view here is that it would be unfortunate if any section of the industry, in seeking to safeguard its own position, were to embarrass the joint organisation in its all-important task of arriving at a general wool price level which must be based on broad major considerations such as world conditions, general commodity level, world ability to buy. etc. Both Britain and Australia are surprised that the wool conference report should estimate the period required for the disposal of the surplus at 13 years. At the same time, it is pointed out that from a purely statistical angle, liquidation in 13 years requires an increase of 20 per cent, in world wool consumption. It is also pointed out that such an increase is no small thing to achieve. It is generally recognised that it may be easy to maintain such an increase in the first few post-war years during which war-time shortages are being made good, but increased consumption must be maintained for more than a decade if the rate of diminution of the surplus is to be sustained. Quality of Surplus

The purely arithmetical angle, however, takes no account of the quality of the surplus, and this latter is an aspect of chief interest to world users. Trade opinion in Britain is that wartime requirements are likely to absorb many of the best wools of the war-time clips, and that the surplus may comprise substantial proportions of average to inferior style wools. If that n so the outlook would seem to promise an assured demand for all good style new clip wools, and growers will have an incentive to produce good sound wools, as indifferent clips will be most likely to feel the competition of heldover wools.