WOOL DISPOSAL SCHEME

Timaru Herald, Volume CLVIII, Issue 23321, 3 October 1945, Page 4

WOOL DISPOSAL SCHEME

Danger Of Bureaucratic Control Fears Discounted N.Z.P.A.—Special Correspondent (7.55 pirn.) LONDON, Oct. 2. The Bradford wool trade is surprised that certain sections of the Australian trade entertain misgivings that the Dominions’ wool disposal scheme may tend to foster ideas of the permanent bureaucratic control of wool. There are no such fears so far as the United Kingdom is concerned, for it is felt that a wisely administered disposal scheme affords the quickest opportunity for a return to complete freedom, and the trade in Britain would be expected to resist strenuously any attempt to use the machinery for the disposal of the accumulations as a lever to introduce permanent bureaucratic control. The trade here always has been suspicious of marketing schemes which sought to maintain artificial conditions by restrictive marketing practice, but the disposal scheme is placed in an entirely different category. It is recognised that regulated marketing must be undertaken, if chaotic conditions are to be avoided, but the official report makes it clear that it is not to be restrictive marketing. On the contrary. It is to be marketing on lines calculated to promote an increased consumption of wool. The price level will be “reasonable.” and this is interpreted to be one which will avoid depression values on the one hand, and artificially high values on the other. Intense Appraisements Traders here are surprised to learn that sections of the Australian industry are reported to be seeking assurances that future appraisement values will not fall under current levels. The view here is that it would be unfortunate if any section of tile Industry in seeking to safeguard its own position were to embarrass the joint organisation in its all-important task of arriving at a general wool price level, which must be based on broad major considerations, such as world conditions. general commodity level, world ability to buy, etc. Both Britain and Australia were surprised that the wool conference report should estimate the period required for the disposal of the surplus at 13 years. At the same time it is pointed out that from the purely statistical angle liquidation in 13 years requires an increase of 20 per cent, in world wood consumption. It is also pointed out that such an increase is no small thing to achieve. It Is generally recognised it may be easy to maintain such an increase in the first few post-war years during which wartime shortages are being made good, but increased consumption must be maintained for more than a decade if the rate of diminution of the surplus is to be sustained. The purely arithmetical angle takes no account of the quality of the surplus, and this latter is the aspect of chief interest to world users. • Trade opinion here is that wartime requirements are likely to have absorbed many of the best wools of the wartime clips, and that the surplus may comprise substantial proportions of average to Inferior style wools. If that is so the outlook would seem to promise an assured demand for all good style new clip wools, and growers will have an incentive to produce s-ood sound wools, as indifferent clips will be most likely to feel the competition of held-over wools,