NEW ZEALAND WOOL CLIPS.

Otago Witness, Issue 3829, 2 August 1927, Page 34

NEW ZEALAND WOOL CLIPS.

SELLING ARRANGEMENTS. OTAGO FARMERS’ SUGGESTIONS. WELLINGTON, Julv 29. The executive of the Otago branch of the New Zealand Farmers’ Union sub", mitted a lengthy report to the Dominion conference on that body to-day giving suggestions for the better disposal of wool in New Zealand.

“The time appears to have arrived,” stated the report, “now that fully 97 per cent, of our clips are offered and sold in New Zealand, to consider the matter of local sales, as their position has changed from that, occupied by them when they were subsidiary to London, and u'hen it was a question for serious consideration whether growers could do better by speculating on the out turn of London sales months ahead. In those days the quantity submitted in New Zealand amounted to from 30 per cent, to 60 per cent, of tho total; hence the wool-selling arrangements then in vogue were adequate. The position to-day seems to show that new ideas and changed methods are necessary if colonial sales with their advantages to growers (control of selling, early realisation, simplification of finance, etc.) are to be maintained and improved.’’ The Otago Union's reasons for separating the North and South Island for woolselling are summarised as follows: —

“The bulk of the New Zealand clip is now offered in New Zealand—say 50t'.tXx> bales compared with about 300,000 13 or 14 years ago. Carrying on the same system now as was in vogue then means the expenditure throughout New Zealand on hundreds of thousands in stores which are, to a large extent, useless after the wool season. 'Therefore the wool has to stand higher charges to provide interest, depreciation, insurance, rents, taxes, and' upkeep on these extra premises. They are, therefore, economically wrong when a. change of system is cheaper and more efficient. At present the catalogues are too huge to be handled properly by buyers, and brokers’ finance is disturbed by the huge drafts and payments. This could be avoided by splitting the islands and having two rosters at which smaller sales at reasonable intervals could be held to enable better financial arrangements for banks boih here and in England, instead of tying up funds in a few huge transactions. Shipping could be better regulated, and perhaps in time cheaper freights would be possible, in that each ship would get a reasonably full cargo at once instead of in spasms as at present. Overtime labour as tho result of present rushes eats up noney aud increases costs. Wools shut out from the present listed sales have to wait too long for the next series. There are. therefore, extra financial risks to growers and fianciers, as well as extra interest costs to those who have borrowed against their clips. The bulk of the buyers now have assistants to cope with the work, and both valuers arc worked to death, causing bad work. Those buyers who have not assistants can surely operate through commission buyers who do nothing else but fill orders given them by the manufacturers and others. The new system of binning, reclassing in store, and grouping requires proper time and space to be adequately carried out. Tho new move to have three bale lots made star lots necessitates more room and time. If the islands were apart with separate rosters, other centres such as Gisborne and Oamaru could comfortably be included. The movement of wool into and out of stores could be better regulated. and sales could be held in each selling centre every three weeks or-month, and allow decent breathing space between the sales. Arrangements can easily be made for no sale in either island to clash. Breathing space would give buyers, brokers and growers time to adjust their ideas, resulting in fairer prices. To-day one grower gets too much and another too fittle. both of which lead to suspicion and trouble. The office work for buyers and brokers would be simplified and errors reduced. Though the attendance on the benches in the saleroom would be reduced, the actual number of buyers would not be materially affected. As the North Island clip consists of principally wools, l 48s downwards, and the bulk of the South Island 42s upwards, there is not much chance of clashing.’’ The report was referred to the various branches of the new union for consideration.