WOOL MARKETING

Poverty Bay Herald, Volume LXV, Issue 19732, 10 September 1938, Page 4

WOOL MARKETING

STABILISING SCHEME LINES OF BAWKA MINIMUM PRICE PLAN SYDNEY, July 14. The Agricultural Bureau Conference to-day passed a resolution favouring a wool stabilising scheme, similar to 8.A.W.R.A., and the fixing of a minimum selling price at lJd a lb for all Australian greasy wool. It was decided to ask the State Parliament, the Graziers’ Association, the Farmers and Settlers* Association, and kindred bodies to approach the Federal Government with a request to this effect.

The decision of the conference followed an address by Mr. G. A. Dunn, of Cowra, wiio proposed that the Commonwealth Government should acquire, on behalf of the woolgrowers, the whole of the Australian wool clip each year as it arrived in store. “Let us assume,” said Mr. Dunn, “for the purpose of arriving at some estimate, that the total wool clip of Australia is 3,000,000 bales, and that each bale averages 3121 b at 13d per lb on a flat rate. This will mean £l6 18s per bale, which will total £50,700,000.

, “We should ask New Zealand and South Africa to carry out a similar scheme of reserve selling price. 1

propose that we fix a minimum selling price of 13d per lb greasy, to be calculated on a flat rate, similar to the B.A.W.R.A. scheme.

Only Auction Sales

“No wool,” said Mr. Dunn, “is to be allowed to be sold in the growers' shed, or otherwise than at auction in the first instance. Upon arrival of the wool in the brokers’ store, and allowing a reasonable time for appraisement, say four weeks, the growers are to receive a payment on account —on a flat rate —of 9d per lb which will amount to £35,100,000.

“The remainder of 4d per lb, amounting to £15,000,000, is, after the wool has been sold, to be dealt with as follows:—,',d per lb. amounting to £075,000, to be alloted to cover interest on the scheme; .',d per lb, amounting to .£975,000, to be allotted to cover unforeseen expenses, management, and extra storage, etc., in addition to the brokers’ usual charges; and ?,d per lb, amounting to £1,900,000, to be funded to be deducted each year for 10 years until the sum of £20,000,000 is built up, to be used to finance the scheme without outside help. “These charges total £3,900,000, leaving—provided all the clip is sold

—£11,700,000 for further distribution, or 3d per lb. This £11,700,000 represents 22 per cent of the clip, and, if this is unsold, the growers will, until it, or part of it is sold, receive only 9d per lb on a flat rate, which is only Id below to-day’s price. “I suggest that the Commonwealth Bank advance £10,000,000 from funds, and, when a third of the wool is sold, this loan will be repaid; loans to be floated in Australia by the Commonwealth Government (with wool as security) for £10,000,000 for nine months, and £10,000,000 for 15 months, bearing interest at 41 per cent per annum. This will raise£3o,000,000, which will be sufficient to finance the scheme at 9d per lb when the wool arrives in store, and which will be repaid when sales are affected. Growers are to be paid any further moneys after the loans are repaid, and as same is received from the buyers.