WOOLLEN GOODS

Southland Times, Issue 21820, 24 September 1932, Page 6

WOOLLEN GOODS

. CRITICISM OF COSTS

DISCUSSION BY FARMERS’ UNION INTERESTING PROPOSAL The costs involved in the manufacture of wool into materials and woollen goods were attacked by speakers at the monthly meeting yesterday of the Southland Executive of the Farmers’ Union. A scheme was propounded whereby farmers could send raw wool to English mills and have the manufactured article returned at a great saving. It was alleged in the course of discussion that retailers made profits on woollen goods up to 100 per cent. The following remit was received from the Lumsden Branch: That the union endeavour to obtain cheaper woollen goods for its members. Mr G. A. Hamilton moved the adoption of the remit and said that no commodity carried such high handling charges as wool. In England, shepherds could take a fleece of wool to the woollen mills and have it manufactured into any article desired. This could not be done in New Zealand. The local woollen mills would not do this. A tariff was charged on woollen goods entering New Zealand, but this was ostensibly to protect local manufacturers. No tariff was charged on silk and linen goods as there was no manufacturing trade of these goods in New Zealand. The speaker contended that the New Zealand woollen manufacturers were not entitled to claim protection as they would not make wool into goods to the order of the producers. Mr Hamilton produced a number of samples of woollen materials and quoted the manufacturing costs if the wool was sent to the English mills, giving, for the purpose of comparison, the equivalent retail price in New Zealand which was in most cases more than double the manufacturing cost. Farmers could send their wool to England with orders for manufacture into materials, he said. It might be possible for the farming community to go into the scheme thoroughly and establish sample rooms where producers could select the materials required and order accordingly. Proceeding, Mr Hamilton said he had consulted a man with a lifetime of experience in woollen mills on the question and he had stated that a small mill could be established in New Zealand and fitted up with up-to-date and efficient machinery and run with a staff of four capable men at a weekly cost of £24. Such a factory could produce £6O worth of goods per week. This would be a fairly costly undertaking and Mr Hamilton thought it would be better for the farmers to go into the matter of establishing a regular business with English mills for the manufacture of their own wool into goods. He believed that great savings could be effected in this way and the middleman’s profits eliminated, including wholesale merchants’ margin and retailers’ profits, which ranged up to 100 per cent. He contended that efforts should be made to secure the agreement of the Government to a proposal that wool sent Home for manufacture should be readmitted duty free. He had been informed that as a result of the imposition last year of the surtax on woollen goods the local manufacturers had taken the opportunity to increase their prices accordingly and the cost of woollen goods was actually higher than a year ago. Mr T. McMath said that Mr Hamilton was to be congratulated on bringing forward the remit. There was a great disparity in the price of raw wool and the retail value of the manufactured article, and the producers would need to investigate the possibilities of obtaining their woollen goods at a more reasonable price. The president (Mr Peter Arnott) said the question was a very big one and he considered that it should be referred to a sub-committee for investigation.

Mx - R. Sim said the scheme laid before the executive was a very promising one, but while he did not wish to appear critical, he considered that it was bristling with difficulties. If it was a fact, as Mr Hamilton had stated, that the users of wool were being exploited by drapers who were making profits up to 100 per cent., it might be better to attack these profits and find out just to what extent exploitation was being carried out. Investigation should be made in order that excessive profits might be discovered and attacked. During the wax - an Act of Parliament had been in force to prevent profiteering. A member: It’s still in force. Mr Sim: Is it operating?

A voice: Yes. Mr Sim: Then it must be honoured more in the breach.

Mr Henry Smith moved that the remit be referred to a special committee with Mr Hamilton as convener. .

Mr W. H. Ward protested against the setting up of another committee. He considered that the existing Economic Committee could adequately deal with the matter and as it had representatives of the Women’s Division attached, it was in a position to deal with this special question. Mr Ward’s suggestion was adopted.