WOOL MARKETING

Otago Daily Times, Issue 27057, 16 April 1949, Page 2

WOOL MARKETING

THE FARM

NEW PLAN OUTLINED PROPOSALS FOR NEXT YEAR Federated Farmers has received detailed recommendations of a special committee set up by the Australian Woolgrowers’ Council concerning the establishment of a marketing scheme to follow the winding-up of the present Joint Organisation. Details of this winding-up are to be discussed at a conference of United Kingdom and Dominion representatives next year. After collecting considerable information from all interested parties, the Australian committee has recommended the institution of a post-Joint Organisation marketing organisation embodying the principle of an open auction system of selling with a minimum of reserve price. That necessitates the formation of a statutory authority to buy and sell wool, and with ample finance for the purposes a similar organisation to the present “JO ” is therefore envisaged. The co-operation of South Af- . rica and New Zealand, the two major woolgrowing countries, is envisaged in the proposed Australian plan, as is the continued participation of the United Kingdom with its important consumer interests. The committee’s recommendations, now being submitted to the various organisations forming the Australian Woolgrowers’ Council, provide for an initial approach to the Commonwealth Government and subsequently to New Zealand, South Africa and the United Kingdom. An Australian organisation is then planned with a small board consisting of a majority of growers’ representatives and with consultative committees of buyers and brokers. On a central organisation in London, directors would represent the four

participating countries, and that organisation would determine the initial level of the reserve price and any subsequent variations of it. Participating countries would bear an equitable share of the administrative costs of the central organisation, and both the dominions and the central organisations would have all the necessary statutory authority for the conduct of the marketing scheme.

So far as Australia is concerned, it is proposed that the initial operating capital of the Australian organisation should be provided from the Wool Industry Fund set up in 1946 and consisting of money derived from the operations of the Central Wool Committee. A nominal rate of interest would be paid on advances from that fund.

The operating expenses of the Australian organisation would be borne by the suppliers of wool, and for that purpose a contributory charge would be imposed on all wool produced in Australia. Any funds already held by the Taxation Commissioner from the existing contributory charge account would, it is proposed, be transferred to the contemplated new Australian organisation. In the event of the termination of the plan at any time, the total assets of the Australian organisation would be paid to the Wool Industry Board. . The fact that the Australian Woolgrowers’ Council has formulated the post-Joint Organisation marketing plan is of general significance in New Zealand and South Africa where growers have already urged the establishment of some stabilised wool marketing scheme. The Australian attitude has. however, been difficult to determine. If the constituent associations of the WoolgroWers’ Council agree on the recommended plan, the way should be clear for action by all three dominions.