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Flexible reserve price on wool soon



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PRESS

MINISTER FOR.

S TAT E M E N T PRIMARY INDUSTR-Y--

ly ^

FLEXIBLE RESERVE PRICE ON WOOL SOON

The Minister for Primary Industry, Mr. Anthony, said today

he was "working overtime" to try to have a flexible reserve price operating for wool within two or three weeks.

But he flatly rejected a suggestion that a minimum floor

price be fixed for wool.

Mr. Anthony was addressing 600 people at a Zone 4

Convention of the United Farmers' and Woolgrowers' Association

at.Cowra in N.S.W.

He said it would be absolutely reckless to fix a minimum reserve price, as suggested from the floor of the meeting, at

40 cents a pound.

"I think you could even have a boycott of the market by the buyers if you di d this," he said.

"You could have stockpiles building up that could lead you into an impossible position in which you would collapse and then have to release this wool onto the market.

"You would create complete lack of confidence and instability that could be quite disastrous in the long term.

"I would not and could not support that sort of approach

to the management of a reserve price."

Mr. Anthony said a fixed reserve could drive users away

from wool to other fibres.

"I don't think you could hold the textile industry to ransom when fibres are all down in price to very low levels,"

he said.

2.

"We have got to try to get the most out of the market,

and I think we can get more out of it than it is offering at the moment.

"But the market has to be tested, not defied."

Aar. Anthony said he was working as quickly as he could to get the Australian Wool Commission established.

"I was in Melbourne yesterday (Sunday) having discussions with appropriate personnel on this matter," he said.

"There will need to be discussions on the financial arrangements with the trading banks, which I frankly just have not had time to do.

"But I am thinking in terms of trying to operate the scheme, not for next year, but within two or three weeks if I can.1°

RELEASED IN CANBERRA,

2nd November, 1970.