PRE-EMPTIVE SCHEME

Otago Daily Times, Issue 27515, 9 October 1950, Page 4

PRE-EMPTIVE SCHEME

No Definite Advice Received MINISTER'S RETURN AWAITED Parliamentary. Reporter WELLINGTON, Oct 8. The Acting Minister of Marketing Mr Macdonald, to whom New Zealand and overseas reports of a scheme of pre-emptive buying of wool were referred tonight said he had not received any advice of a concrete scheme or schemes. The Minister of Agriculture, Mr Holyoake, who was due back in Auckland late tonight after attending the London conference would no doubt be reporting to Cabinet a general outline of the discussions and any proposals arising from them. What was done would be a matter for a Cabinet decision and no doubt whatever was decided would be in conjunction with Australia. Ther* had been rumours recently as to th* likely course of action. If Cabinet considers such a schem* it must also take into account the .possible accentuation and acceleration of inflation which would result from; th* large increases in wool realisations, which may be considerable. Som* decision is certain to be taken by Cabinet on the freezing or otherwise of the large increases in wool realisations which are certain whether th* scheme is adopted or not. Without some precautionary or holding measure, up to £60,000,000 could be added to the money in circulation, which is already considered excessive. In spite of measures already taken by the new Government, the Budget presented by the Prime Minister, Mr Holland, as Minister of Finance, made it clear that,by the higher realisation* from wool New Zealand had avoided serious embarrassment in overseas payments. While these increased sterling funds, they would, if paid out here to woolgrowers, greatly increas* the volume of money in circulation. The Prime Minister, Mr Holland, said last night that the pre-emptiv* scheme of buying was one of a number advanced. He was awaiting th* return of Mr Holyoake to report