FARMERS FEDERATION NEWS BULLETIN

Wanganui Chronicle, 14 April 1949, Page 7

FARMERS FEDERATION NEWS BULLETIN

POST-WAR SCHEME FOR MARKETING OF WOOL (Contributed by the Federated Farmers of New Zealand) (NOTE: The following summary of a Post J.O. Wool Marketing Plan is based on an official report just received from Australia where it is being released to the Press on Wednesday, April 13th. It is of particular importance to New Zealand and was the subject of discussion at last week’s meeting of the Electoral Committee of the Wool Board when no details of the Australian plan were available. These details arrived in New Zealand only at the time of writing, Monday, April 11th.) Although when discussions were held at last week’s meeting of the Electoral Committee of the New Zealand Wool Board on a post J.O. wool marketing plan, no information was available concerning the attitude oi the Australian growers, Federated Farmers has now received detailed recommendations of a special committee set up by the Australian Woolgrowers’ Council concerning the establishment of a marketing scheme to follow the winding-up oi tlie present Joint Organisation. Details of the latter are to be discussed at a conference of United Kingdom and Dominion representatives next year. Alte r collecting considerable information from all interested parties the Australian Committee has recommended the institution of a post J.O. marketing organisation embodying the principle of an open auction system of selling with a minimum reserve price. That necessitates ,the formation of a statutory authority to buy and sell wool and with ample finance for the purpose and a similar organisation to the present “J. 0. is, therefore, envisaged. The co-operation of South Africa and New Zealand, the two major wool-growing countries, is envisaged in the proposed Australian plan as is the continued participation of the United Kingdom with its important consumer interests. The Committee’s recommendations, now being submitted to the various organisations forming the Australian Woolgrowers’ Council, provide for an initial approach to the Commonwealth Government and subsequently to New Zealand, South Africa and the United Kingdom. An Australian organisation is then planned with a small board consisting of a majority of growers’ representatives and with consultative committees of buyers and brokers. On a central organisation in London, directors would represent the four participating countries ana that organisation would determine the initial general level of the reserve price and any subsequent annual variations of it. Participating countries would bear an equitable share of the administrative costs of the central organisation and both the Dominions and the central organisations would have all the necessary statutory authority for the conduct of the marketing scheme. So far as Australia is concerned, it is proposed that the initial operating capital of the Australian organisation should be provided from the Wool Industry Fund set up in 1946 and consisting of money derived from the operations of the Central Wool Committee. A nominal rate of interest would be paid on advances from that fund. The operating expenses of the Australian organisation would be borne by the suppliers of wool and for that purpose a contributory charge wouk be imposed on all wool produced in Australia. Any funds already held by the Taxation Commissioner from the existing contributory charge account would, it is proposed, be transferred to the contemplated new Australian organisation. In the event of the termination of the plan at. any time, the total assets of the Australian organisation would be paid to the Wool Industry Fund. The fact that the Australian Woolgrowers’ Council has formulated the post J.O. marketing plan is of general significance in New Zealand and South | Africa where growers have already

urged the establishment of some stabilished wool marketing scheme the Australian attitude has, however, been difficult to determine. If the constituent associations of the Woolgrowers’ Council agree on the recommended plan, the way should be clear for action by all three Dominions.