INCREASED WOOL PRICE

Southland Times, Issue 24773, 18 June 1942, Page 4

INCREASED WOOL PRICE

Proposed Reserve Fund Opposed (P.A.) CHRISTCHURCH, June 17. The suggestion by the Minister of Marketing, the Hon. J. G. Barclay, that portion of the 15 per cent, increase in price paid for the 1942 wool clip by the British Government should be retained by the New Zealand Government to safeguard the sheep-farming industry in the event of difficulties from the war was strongly opposed by members of the North Canterbury provincial branch of the Farmers’ Union at a special meeting of the meat and wool and emergency committees. The meeting also passed a resolution opposing the Minister’s proposal that New Zealand woollen mills should not pay the 15 per cent, increase on local wool in line with the British Government’s increase. In a circular addressed to all provincial executives asking them to take urgent action on the minister’s proposals, the Dominion president, Mr W. W. Mulholland, revealed that at a conference held in Wellington last week to discuss payment of the increase, the Minister had stated that if the sheepfarming industry was not prepared to set aside a reasonable reserve fund along the lines suggested it might be necessary for him to recommend the Cabinet that in subsequent seasons the Government should purchase meat at the f.o.b. point only; also, in the event of a serious shipping hold-up, the sheep-farming industry could not expect the same measure of assistance from the Government as was available at present and which reasonably might be continued if the industry itself were prepared to create a reserve fund.