GROWERS UNEASY

Timaru Herald, Volume CXLVIII, Issue 21554, 17 January 1940, Page 3

GROWERS UNEASY

AUSTRALIA’S WOOL POLICY DANGER FROM SUBSTITUTES Growing discontent among a majority of Australia’s 90,000 woolgrowers at the secrecy regarding terms and conditions under which the whole of the clip surplus has been sold to Great Britain threatens to develop into more direct action unless the Prime Minister makes a clear statement of the position. Growers are becoming bewildered and angry at the apparent ‘‘hush, hush” policy. They claim that, whatever their various views on the average price that has been fixed, it is their wool that is being sold, and they are entitled to know what steps have been taken for protection of the industry during and after the war. Review of the Price They want, particularly, to know if provisions have been made in the agreement for review of the price in the event of an alteration in the rate of exchange, or of costs of production rising, as anticipated. Since it costs 12d per lb. at present to produce the wool, growers fear that, unless an ironbound provision appears in the agreement, they will be selling it at a loss if the war goes on for a long period. They are vitally interested in the sale of wool to Japan and the United States. Cables and letters have been reaching representatives of the industry from the United States in the last few weeks, telling of the flood of advertising matter that has appeared in American papers about the uses to which artificial fibres may be placed as a substitute for wool. Australian growers point out that they still pay an annual levy of 6d a bale on all wool produced, and that this fund, amounting to £15,000 a year, is supposed to be devoted to research in wool-growing and publicity for wool apparel. The Australian Wool Board is trying to stem this rush into artificial fibre mixtures, but the growers say that unless Australia makes known to these countries how much wool they will be getting the efforts of the board may be seriously offset, and much of its good work undone. | Profits From Resale For some time past the policy of the British Wool Control Board has

come more and more under the lash of trade and economic critics, whose chief fear is that it may be too limited to enable Great Britain to hold and develop the wool industry after the war. Australia is particularly interested in the price at which Great Britain is reselling the wool, because, under the Imperial purchase scheme, growers are entitled to half the profit made on the resale. On the other hand, if the price fixed for tops is too high to enable neutral countries to buy freely, Australia is faced with the danger of driving good customers away. In the long run, it would seem to be greatly in Australia’s interest that there should be no accumulation of wool in England, so that, when peace returns, Australia shall be in a position to resume trade relations with its old customers on a basis that will be beneficial to all.