BIG BRITISH PURCHASE

Te Awamutu Courier, Volume 60, Issue 4234, 22 January 1940, Page 5

BIG BRITISH PURCHASE

WHOLE OUTPUT OF WOOL WANTED PRICE EXCEEDS 17D “Following extensive negotiations' agreement has been reached for the purchase by the United Kingdom Government of the total production of New Zealand slipe wool for the period of the war and one year thereaftei, less the quantity required for the Dominion,” said the Minister of Marketing, the Hon. W. Nash, in a broadcast address last Saturday night. The Minister said that the price agreed upon was 13.75 d per lb sterling f.0.b., equivalent to 17.1016 d New Zealand currency. “If all the wool 4s not used in the United Kingdom and is sold outside, we share the profits 50-50,” Mr Nash added. “Half goes to the United Kingdom and half comes to the Dominion.” The purchase covered the slipe wool held from last season, as well as the current season’s production, he continued. After allowance for appraisal and aidministration costs amounting to about id per lb., an overall price in New Zealand currency of 16.9766 d per lb would result. Ten per cent would be deducted as a suspense fund to cover any necessary adjustments consequent on the appraisal. RANGE OF PRICES Appraisers had already worked out prices for the different grades of sheep’s and lambs’ slipe wool, Mr Nash said. The range was from about 7d per lb up to perhaps 22d in some cases, with the average a fraction below 17d. The whole of the 10 per cent suspense fund not used would be refunded to owners on a pro rata basis at the end of the season. All costs of the purchase up to f.0.b., including preparation and display, were the responsibility of the owners of the wool, the Minister added. Shipments would be made promptly. Appraisement !by the New Zealand Wool Buyers’ Association would commence on January 23 in the North Island, and would continue in rotation, and every effort would be made to relieve congestion in freezing works and stores. “The price is a good one,” Mr Nash said. “It is fair to the United Kingdom and fair to the sheep-raiser in New Zealand.” WOOLLY SHEEPSKINS Negotiations in connection with woolly sheepskins were not yet completed. the Minister continued, but the United Kingdom had indicated that she would require the total exportable surplus. The basis of payment would be the slipe wool price plus ruling parity for the skin, less the cost of pulling the wool, pickling the pelt and certain minor charges, totalling about 2idi per lb.

“We have had the skeepskin -marketing authority established for about two months, and it has been operating very successfully since its inauguration,” Mr Nash continued. It would now undertake the apprais-

al for export of the sheepskins. Completion of negotiations concerning woolly sheepskins would, mean that there were only two other major primary products, tallow and hides, concerning which export arrangements had still to be made final. As far as tallow was concerned, negctations were still in progress, and it looked as though the United Kingdam would undertake to purchase her requirements from the Dominion. The Minister hoped for a settlement during the coming week. Concerning hides, conferences were still in progress with interested parties. He hoped to be able to announce within a few days the procedure to be followed for the disposal of hides during the current year.