WOOL PRICES

Otago Daily Times, Issue 27499, 20 September 1950, Page 6

WOOL PRICES

Further Sacrifice Opposed CEILING RESISTED “Lack of understanding of the real facts has been the cause of a good deal of irresponsible talk regarding ceilings on wool prices,” said Mr John Andrew, president of Federated Farmers of Otago, to a meeting of the provincial executive yesterday. “Under the commandeer during thfl war years the woolgrowers of New Zealand made a very considerable sacrifice in the national interest, and the injustices and anomalies—which seem to be inseparable from the ad* ministration of any such scheme—arfl still fresh in their memories. “ The necessity for an inquiry by a Royal Commission was evidence of the economic position of many of our high country farmers, who now should not be denied the opportunity of making up some of the leeway lost during the war years,” Mr Andrew said. “ The public should know something of what the farmers have already done in the interests of this country's future welfare. The meat producers have established a substantial reserve to draw upon if any fall should occur in overseas prices. Woolgrowers have done likewise, and also have a reserve which no other section of the com* munity has to provide insurance fo? the future.

“ The success of the Joint Organisation scheme and the proved value of the return to the system of open auctions have, with other factors, convinced woolgrowers that only stern necessity and an equal sacrifice by other sections of the community could induce them to accede to any suggestion to abandon the present system of marketing. “Eighteen years ago,” Mr Andrew said, “ the price of crossbred wool dropped to 4d and 5d a pound, and there was no suggestion then that public funds should be used to rescue the sheep farmer. Wool, it must be remembered, is a international commodity, and its increased price has been m line with the mounting values of copper, lead, cotton and other items in international demand. In any case it might be pointed out that the increase in manufacturing and processing costs is of more direct concern to the public than the advance in wool prices. Even on today’s prices the cost of the wool in a suit of clothes is only about 30s more than, it formerly was.”

The farmers of New Zealand had already contributed to stabilisation funds a sum in excess of £80,000,000, Mr Andrew said. This money had actually been spent for the benefit of all the people of New Zealand. The farmers alone had been asked to make this sacrifice, and while farmers were aware of the need to preserve a stable economy they could, with some justice, ask' whether the application of these funds to the specific purposes for which they were subscribed would be practicable when the need arose, and whether further contributions of this nature should be made. “ The high prices for wool are not being enjoyed by the farmer alone,” Mr 'Andrew said. “They are of national benefit Mr Holland has acknowledged the Government’s indebtedness to present wool values for the maintenance of New Zealand’s sterling balances, and the contribution received by the public purse from taxation will' be considerable. Nor should it be forgotten that without the present wool values many farmers would be unable to undertake the maintenance and repairs which were sadly neglected during the war years. They must also, if farming in New Zealand is to be kept vigorous and healthy, make adequate provision for housing additional farm workers.

“ Taking all these factors—and many others which could be enumerated—into consideration, sheep farmers are emphatic that they will continue to resist any proposal to interfere with the present system of wool disposal until the need is proved to be urgept and unavoidable. The Government knows our opinions and has agreed that no change in the system shall be made without \ , prior consultation with producers’ organisations.” Mr Andrew's statement received the unanimous approval of the executive. HIGH COUNTRY MEN Reward For Years 01 Struggling PA : WELLINGTON, Sept 19. The proposal to impose ceiling prices for wool was not palatable to New Zealand hill country farmers, said Mr J. Andrew, chairman of the North Island Hill Country Committee of Federated Farmers of New Zealand, in a statement. He said there were 10,000,000 acres of marginal land in New Zealand, and this land pro- 1 duced predominantly wool and store sheep. During the past 20 years marginal land had deteriorated through a variety of economic factors, continued Mr Andrew. Many former hill country farmers had drifted to the towns, and labour had been scarce.

“With high prices the opportunity now occurs-to rehabilitate this country, which is the basis of our industry,” he said, “but this will take several years of good prices. . . . . “It must be borne in mind that at only the most recent sales has wool sold at extraordinary prices. We have yet to see this season’s prices maintained.” After 20 year of struggle for the hill country farmer, there had come a period of good prices, but now it was proposed that a ceiling price be placed on wool, said Mr Andrew. The Sheep Commission, in its report, had issued a plea for amelioration of the conditions of back-country farmers. “ Theirg had been a hard life of endeavour against mounting odds, with ti Only dwindling resources to carry on, the commission had reported, adding: In many cases hope has receded, giving place to despair, resulting in the abandonment of property.” “Against such evidence as this, said Mr Andrew, “ is it reasonable to place a restrictive price on the commodity that these men produce? ”