GOVERNMENT SUBSIDY

Waikato Times, Volume 195, Issue 22459, 21 September 1944, Page 6

GOVERNMENT SUBSIDY

PRICE OF WOOLLEN CLOTHING NEW SCHEME IN BRITAIN (Special Correspondent) (Received Sept. 21, 11.30 a.m.) BRADFORD, Sept. 20. Britain’s chief wool news is that the Government announces a scheme to subsidise the price of woollen clothing in the home market rather than allow increased prices to the public. Clothing manufacturers have sought permission to charge increased maximum prices for clothing following increased production costs, but the Board of Trade decrees that no increase is permissible and promises that utility wool cloth prices shall be reduced enough to offset the increased making-up costs. The cloth price reductions will involve no depreciation in the cloth qualities, but it is officially stated that they will be made possible by a rebate from the public funds to the cloth manufacturers.

The scheme applies to all utility wool cloth for outer wear in the British home market and the scheme will be operated by the Wool Control.

The British Government is committed to a policy of subsidies in food and other directions aimed at avoiding increases in British civilian living costs, but this is believed to be the first time that the British authorities have declared a subsidy scheme for British wool clothing.