THE EMPIRE’S ECONOMICS

Taranaki Daily News, 24 September 1930, Page 4

THE EMPIRE’S ECONOMICS

A CONFERENCE PROBLEM ORGANISATION OF RESOURCES. AUSTRALIA’S WOOL MARKETING. (Special Correspondent.) Wellington, Sept, 20. The British Government uppoiiited a preparatory committee, consisting 'Of representatives of the Associatioir ~of British Chambers of Commerce, Ftideratiou of British Industries and Chambers -of Shipping of the United Kingdom, to examine into and to report on various commercial matters to,, be submitted to the Imperial Conference. The committee consisted of ten members under the chairmanship of Sir . Gilbert Vyle, one, of the representatives of the Chambers of Commerce.: The. committee recommends that to secure a conn inon Empire policy .adequate machinery 'for investigation and consultation is needed. The most .immediate ■ problem is, therefore, the creation of such machinery; The committee is of. the. opinion that the problem of devising' an economic policy should be studied in a scientific spirit, free from all political bias, and every question affecting interImperial trade should be brought under review.

An Empire Development Board is advocated by Sir Robert Hadfield,',., whose memorandum on the subject forms part o' the committee's report. He holds that the board should be representative-.of the Empire, and with a. fixed orgahisa-. tion- and personnel in, each country. The board’s work should 1 include., development on the broadest possible lines. It should, devote special, attention to the work of expansion by assisting the opening up of new means of transport, railways, tramways, roads, harbours, docks, canals, power plant, the foundation of new industries, opening new districts for farming, controlling forestry, etc. The ultimate control and operation should be in the hands of the countries concerned. The preparatory committee . recommends that in the free discussion and examination of the problems involved representatives of all. organised economic interests, including labour, should be intimately associated .with the work. The committee believes that ’ the. only means of obtaining J a substantial growth and efficient rationalisation of Imperial resources, both from the point of view of inter-imperial trade and of Imperial world trade, - is for the repre-. sentatives of industry, commerce, shipr pipg and finance in the various parts ■ . of the .Empire to be fully consulted by their Governineiits upon /questions of policy. They themselves should, get int? the closest touch possible throughout the Empire with. a view to'/discussiiig as a matter of business the most effr-. cient and profitable organisation- of' Empire production and development as a whole. ... < ' ’ , With regard tg marketing and distribution of Australian .wool, the committee, says; “This mutter has formed the subject of :a special memorandum draw.inci attention to .the mutiiaT-interde-pendence of Australia as. the worlds largest producer, of , fine wool.'and' the United'Kingdom'as her largest buyer.” After; • referring to the serious adverse factors operating in tho woollen, the meinoraiiduni advocates. that<economies in production, marketing-and distribution are necessary to save the industry. •It, is suggested that tile - first econoniy is needed,at the/ source of production, and-that is a.: local problem for the Australian Government and . growers. ■ ■ Reference, is qnado to tfije difficulty of selling the Australian expo'i’t at world values and the increasing competition from artificial silk. Regarding severe losses suffered in recent years by fluctuations in values at consuming centres, attention is drawn to the “adverse factor arising from the present system of offering 90 per cent, of the wool clip by auction in Australia, in place of tiio old system of a series of four to six auctions in the year, and the offeriiirr of a large proportion of the clip in London.” More equal distribution is urged as “an indispensable factor in reestablishing the position, either by sejidiim more wool to Loudon, wheie world °deinand is always available, or by more equal offerings throughout the year at the source of supply. Finance and holding the clip, whether by grazier or buvet, is still the pivotal consideration in distribution.” . , . The committee expresses tTie.. opinion' that any scheme which Would avoid extreme fluctuations in value and help a. more reasonable stabilisation of values would Ixi most serviceable, and that efforts:towards a reduction of costs of production and distribution /have become urgent. The ivork of the Ini-, perial Conference this year wilj be mo-’ mentous.