asked the Minister for Supplies if he is aware that considerable quantities of the 1943 wool clip are still in the hands of farmers and wool merchants; and if he will state how the value of this wool will be affected by the recent Order fixing prices for the 1944 clip.
Ceisteanna—Questions. Oral Answers. - Wool Prices.
I am not aware that considerable quantities of the 1943 wool clip are still in the hands of farmers, and I am satisfied that the great bulk of the clip has now been sold. Any farmer who still holds 1943 season wool has held it at his own risk, as it was announced in July last, and again in December last, that it was proposed to control wool prices at lower levels than those prevailing during the 1943 season. Prices rose to disproportionate levels as the 1943 season advanced, and farmers who held their wool, did so on speculative grounds. I do not consider that by reference to any fair basis of measurement, the prices provided under the new Order are unfair or cause hardship. It should be noted that the provisions of the Order relating to fleece wool do not come into operation until 1st April next, so that the market remains free until then.
Merchants and dealers who bought wool during the season were well aware that prices were enhanced by competition among buyers, and it was common knowledge in the trade that prices would be controlled during the present year. Any merchant who continued to buy at enhanced prices must have been well aware that there was considerable risk in doing so. The Deputy should also understand that prices in this trade are subject at all times to considerable fluctuations, and merchants and dealers who had advance notice of the intention to fix prices, can have no real grievance.
The Minister did not answer that part of my question in which I ask how the value of the 1943 wool will be affected by the Order fixing prices for the 1944 clip.
All wool will be subject to the price-fixing Order after 1st April.
Both the 1943 and 1944 wool?
Yes, all wool.
asked the Minister for Supplies if he is prepared to state the considerations which caused him to fix prices for the 1944 wool clip and the evidence on which the prices were based; if he will also state the prices which obtained in 1940, 1941, 1942 and 1943 for the various classes of wool set out in the Order, and also the names of the committee set up to advise on the fixing of wool prices.
In deciding that the price of wool, which is one of the most essential native raw materials of Irish industry, should be controlled by Order, I was influenced mainly by the consideration that the interest of consumers demanded that the competition for and consequent speculation in wool, which developed with particular intensity during the year 1943, would have to be regulated. Other considerations were that price control was the only way to ensure that the clip would come forward at the proper time, and my desire that the control of cloth and clothing prices should be completed by the extension of the control to the most important raw material.
Prices were fixed at a level which it was considered would cause no hardship to producers, and account was taken of the price in the world market, and prevailing prices in this country, discounting the most recent speculative increases. During 1943, prices varied widely but average producers' prices for that year, compared with the maximum prices fixed for the 1944 clip, are as follows:—
|
Average prices, 1943 |
Maximum prices for the 1944 clip. |
|
|
d. |
d. |
|
|
Washed Downs |
46 |
36 |
|
Greasy Downs |
36 |
36 |
|
Washed Fine Breds |
36 |
36 |
|
Greasy Fine Breds |
30 |
25 |
|
Washed Deep Breds |
28 |
24 |
|
Greasy Deep Breds |
23 |
19 |
|
Washed Cross Breds |
28 |
21 |
|
Greasy Cross Breds |
22 |
17 |
|
Washed Cheviots |
32 |
27 |
|
Greasy Cheviots |
27 |
22 |
Prices in the years 1942, 1941 and 1940 were less than the 1943 prices by approximately 9d. per lb. (Galway-Roscommon 1/- approximately), 11d. per lb., and 12½d. per lb. respectively.
No committee was set up to advise on the fixing of wool prices, but my Department had consultations with all interests in the wool business prior to the making of the Order.