RAYON INDUSTRY IN AUSTRALIA

Southland Times, Issue 23840, 10 June 1939, Page 19

RAYON INDUSTRY IN AUSTRALIA

REQUEST MADE FOR

ASSISTANCE GRAZIERS EXPRESS THEIR OPPOSITION The president of the Graziers’ Assocaition of New South Wales, Mr E. L. Killen, said last night that the request for assistance for the establishment of the rayon industry in Australia would strike a specail blow at the wool industry, “The Graziers’ Association,” he said, “is not adverse in general principle to the establishment of industries in this country. The absorbing of greater population depends on it. Nevertheless, for very many long years to come, Australian economy will continue to rest upon the wool industry, and every proposal for the introduction of new, industries should be examined very thoroughly to determine their effect upon our economy. “The present proposal to introduce the rayon industry under tariff protection means the establishment in our own country of a direct competitor of wool. It is bound also to cause a serious falling-off of Australian purchases of Japanese goods, which will react upon Australia through a diminution of market. A protected local rayon indusJapanese buying upon the Australian try will strike a double blow at the Australian wool industry. “In .the light of the Prime Minister’s welcome indication that he seeks trade relationships with Japan," Mr Killen continued, “the Government must treat this new proposal with the utmost caution. Further, woolgrowers who are contributing a large sum to foster the wool industry in the national interest, no less than in their own, will greatly resent any Government action calculated to negative the results of that work.

“There are surely ample opportunities for developing local industry without striking a f special blow at our trade relations with some of out largest woolbuyers.” Commenting on the question, a writer in The Sydney Morning Herald wrote that the request for tariff assistance to establish the rayon industry in Australia has many objections from the viewpoint of woolgrowers. Imported rayon goods are used extensively in the Commonwealth, but for this country to add a tariff burden in support of a product which comes into strong competition with wool, its greatest primary industry and export revenue producer, would be regarded by sheepowners as being inconsistent, Commonwealth Government legislation provides for a levy on woolgrowers of 6d per bale, which is utilized in a campaign to popularize the use of wool. Can the authorities negative that effort by admitting to the world that the production of rayon is advantageous to Australia? Apart from all other aspects, it would be most injudicious to foster an industry which would further jeopardize Japanese wool buying in Australia. Rayon goods are purchased extensively in Japan by Australian importers which to a great extent enables Japanese millmen to buy our wool. The effects of limiting the importation of those goods was shown by the reduction of Japan’s Australian wool purchases from 785,469 bales in 1935-36 to 318,940 bales in 193637, and subsequently decreased quantities.

Great Britain, Australia’s best customer for wool, lamb, mutton, beef, butter and other rural products, exported to Australia in 1938: Rayon yarn, 2,232,4031 b; rayon piece goods 6,584,091 square yards; and rayon mixture goods, 5,342,292 square yards. Would the United Kingdom and other woolbuying countries, placidly watching that trade diminish, still buy wool with freedom and encourage efforts to stimulate its use? t - 1 "