PAYMENT IN FULL

Wairarapa Times-Age, 18 June 1942, Page 2

PAYMENT IN FULL

OF THE INCREASED PRICE FOR WOOL DEMANDED BY WAIRARAPA SHEEP FARMERS. SUBSIDISING OF WOOLLEN MILLS OPPOSED. A meeting of sheep farmers held in Masterton yesterday afternoon unanimously passed motions to the effect that wool growers were entitled to the full payment, of the 15 per cent increase in the price of wool for the 19-12-43 season given by the British Government and that they flatly refused to subsidise local woollen mills to the extent of £200,000 from the proposed pool. Mr A. McDonald, president of the Wairarapa branch of the Sheepowners’ Federation, presided over a large attendance of sheep farmers. The Government has proposed that half of the increase should be retained by it to safeguard the sheep farming industry in the event of difficulties from the war. BELOW WORLD PARITY. Mr L. T. Daniell, Wairarapa delegate to the conference held in Wellington to discuss the matter, reported on the conference proceedings. The Minister, he said, read a long statement on the economic situation of New Zealand, particularly in regard to the sheep farmer. Mr Daniell referred to proposals for the stabilisation of local woollen mills, which would mean that sheep farmers would have to find about £250,000 out of the pool. He went on to refer to the position of the wool agreement, stating that today the dairy farmer was getting world parity for his products, the wheat grower was getting nearly double world parity and the wool grower, even adding the long overdue 15 per cent, was getting well below world parity. Immediately the price of 12]d for raw wool was announced in December, it was stated that the resale price to Canada was 2s 6d (New Zealand) and the price agreed upon with the Government of the United States was 3s 4-J-d. Admittedly, the wool grower was not getting reasonable parity and so a clause was inserted in the agreement that they were to get a half share of the proceeds of raw wool sold for use outside the United Kingdom. That admission of below parity was of great interest to farmers, who accepted 12-Jd, and in fairness to them the position should be understood by Cabinet and the whole of the community. In 1939 the British Government pegged the wool price at what it thought was a suitable level and with one eye on costs it was now bringing them into conformity with other countries. By wage rises there had been an inflation of their costs and the 15 per cent payment was supposed to be their compensation. Mr Daniell moved that the meeting was of opinion that wool growers were entitled to the full payment made by the British Government. COSTS INCREASED. Seconding the motion, Sir William Perry said they had to thank the sheep farmers in Australia for taking a stand in the matter. They had stated that their expenses had gone up tremendously and he could endorse that in regard to New Zealand, especially in the case of the smaller farmers. There was no doubt in his mind that this money would be very acceptable, particularly to tile small farmer. The position in the Old Country was not very encouraging for wool. Wool supplies had been cut down to ordinary manufacturers, who also had to make utility clothes. Synthetic mills had had a great opportunity and that was going to be their chief problem in the future. Mr Daniell’s motion was carried unanimously. SUBSIDY CONDEMNED. Mr W. A. lorns pointed out that the sheep farmers of the country had been subsidising tanneries since the commencement of the war. They had allowed them to take hides at about Lid below the market value. He was sure that if the amount involved were totalled up, it would be found that the sheep farmers had contributed a considerable sum of money towards providing cheap footwear. He strongly condemned the proposal to subsidise the woollen mills and moved: — “That on the evidence available this meeting flatly refuses to subsidise local woollen mills to the .extent of at least £200,000. If on inquiry the local mills require financial assistance the necessary adjustment should be made from such taxation as is evenly distributed over the whole community.” Continuing, Mr lorns said they had heard Ministers say that war costs should be spread over the whole community. He pointed out that the woollen mills of New Zealand were protected by tariff. One very blatant fact was that the biggest importations of material were of artificial fibres, which were coming in to the country without any duty, and though New Zealand was producing wool the duty on woollen goods was increased. If one of those artificial woollen goods brought into the country had one wool fibre in it, the whole of the duty on woollen goods would be placed on it. NOT PROFITEERS. Seconding the motion, Mr Hugh Morrison said wool growers were taking the lowest price for wool in comparison with other commodities and compared with pre-war and present prices. They were not profiteers. No section of the community could say that they had been asking for a price that was anyway near profiteering —it was the other way round. The time had conx. now when they should have the whole of the 15 per cent increase. He saw no justification for asking one section of the community to subsidise the woollen mills. It amounted to putting a penalty on the sheep farmer. A speaker, who said he was also concerned in the manufacture of wool, said that the woollen mills had never asked for cheaper wool and were quite prepared to pay the market rates. RISE IN,WAGES. Mr E. W. Cheetham said that according to his calculation, the two rises of 5 per cent in wages to workers amoun-

ted to about £3,000,000 on each occa-. sion. Why did the Minister think that £2,000,000 to sheep farmers would cause inflation?- The increase in wages was more likely to cause inflation than anything paid to the sheep farmer. Mr Daniell said, they were prepared to see the Government levy as much properly-spread taxation as the country could stand for the successful prosecution of the war, but for the farmers alone to subsidise the woollen mills was a section-biased financial scheme which was unreasonable and dangerous to the industry. Mr McDonald said the income returns sent in by farmers did not give a true indication of their position, as they were not only paying income tax but were paying away capital, as well, as 'they could not get fencing wire, posts, etc., or labour for ordinary maintenance on their farms. After some further discussion the motion was carried unanimously. The meeting decided that the British Government should be thanked for making the 15 per cent payment.