WOOLLEN GOODS

Otago Daily Times, Issue 27346, 23 March 1950, Page 6

WOOLLEN GOODS

Increase In Price

ALTERATION TO SUBSIDY There will be an increase in the price of woollen goods In the near future as a result of the Government’s decision to alter the system of subsidy payments to the woollen mills. It is yet too early to estimate the extent of the price increases, but a member of the trade told the Daily Times yesterday that a slight price increase was Inevitable, although the mills would strive to do everything in their power to hold prices down as far as possible. In the past the Government has given the mills a cheque for the extra amount they have had to pay for wool above the 1945-46 prices. As the prices for different types of wool varied in 1945-46, so the amount of the subsidy on the various wools has varied. Now the subsidy has been reduced, in effect, as a result of the alteration made to the system. The subsidy now will operate simply in that the Government will pay the mills exactly half of what the mills pay for their wool at auction. The Minister in Charge of Stabilisation, Mr Bowden, has said that it was estimated that, because of the increases in auction prices for the current season, the actual subsidy expenditure would be the same as for the previous season. . Mr Bowden said that, because of factors which varied with each mill, it was not possible to indicate the effect on the consumer on the wool price increases on goods with a large wool content, such as blankets and men’s suits.