N.Z. WOOL COMMITTEE

Wanganui Chronicle, Volume LXXXI, Issue 18900, 22 December 1923, Page 5

N.Z. WOOL COMMITTEE

THE CHAIRMANS EXPLANATION ALLOCATION POLICY JUSTIFIED (Per Press Association.) WELLINGTON, Dec. 21. Dr. Reakes, chairman of the New i Zealand Wool Committee, made the following statement to-day:— “The Wool Committee was established in 1921, and the fact of it having continued in office up to now must have been well-known to all specially interested in the handling and sale or wool. The advantages which have been gained by a reasonable limitation of catalogues have been very real, and have operated in the best interests of growers as well as of New Zealand trade generally, and as a result of this, and of the excellent work of the

“Bawra” organisation, the surplus wool loft over from the Imperial Government purchase has been gradually disposed of in conjunction with each year’s clip without any dislocation of the market. It is very satisfactory to note that the sale of this surplus of Imperial Government wool is now nearing its end, there being at the end of November only 193,000 bales of Australian, and 7,000 bales of New’ Zealand -wool left in the hands of the “Bawra” association for disposal. The limitation of wool catalogues is by no means limited to New Zealand, but is also exercised in Australia and in London. For instance, I am advised | that in Australia, where the total quantity of wool sold annually is about four times that sold in New Zealand, the coming January sales are limited to 200,000 bales in the aggregate. The unusually dry season in the Dominion has caused much greater quantities of wool than usual to be available for the January sales, and if this is thrown unrestrictedly upon the market in an excessive quantity the grower is likely to suffer. Quite apart from ithe probable adverse effect upon the market of an excessive quantity within a short period there is the question of properly displaying each lot so that buyers can correctly judge its value to them—a matter of importance to the sellers upon whom the effect of any disadvantages in this respect must fall. The feeling of growers that they want to take advantage of the present good market, and to realise upon their clip as soon as possible is quite understandable, but it must be realised that temporarily overloading the market is likely to do them more harm than good, while on the other hand a judicious spreading of offerings is in the interests of all concerned.

As regards the special case of the coming Wanganui sale, the quantity now allotted is 22,500 bales. Last season the largest catalogue offered at Wanganui was 18,108 bales (in February), while the total amount sold at Wanganui during the season was 52,059 bales, Christchurch 66,305 bales, Napier 81,502 bales, and Wellington 114,558 bales. . These figures indicate that nothing inequitable has been done in connection with the coming Wanganui sale, indeed, as a matter of fact, the committee has tried to meet Wanganui brokers as far as it possibly could when considering the interests of the Dominion ns a whole. Although Wanganui is the last centre to establish wool sales it has fared better than some older established centres, and the allocation for the January sale of 22,500 bales is 6700 bales in excess of its relative proportion.

It is a matter for regret that the question of Wanganui versus Wellington should have been raised. As a matter of fact, Wellington has never been allocated its full proportion as compared with other centres which have at times been allowed to exceed their relative full proportion. So far as the committee is concerned it was continued in office this season at the special and unanimous request of the New Zealand Woolbrokers’ Association, the members of which naturally act in the interests of their farmer clients, and one aim of the committee has been to fairly and impartially carry out its work to the best advantge of wool-growers throughout the Dominion.”