VISCOUNT ELIBANKasked His Majesty's Government the reason why the basic price of raw wool is being increased arbitrarily by the Board of Wool Control by over 33⅓ per cent. as from March I which will mean that from 429WA March 1 the price at which wool will be released for manufacture will be at least 70 per cent. dearer than before the outbreak of war and whether the Board of Trade is aware that the effect of this heavy increase in price in the raw material will have a very serious effect in restricting the export trade in woollen cloths and clothes and what proportion of this increase in price will go to British farmers; further, whether His Majesty's Government will cause an investigation to be made immediately to ascertain whether this increase in price is justified and take action accordingly?
Lord TEMPLFMOREUp to the present the price of wool has been determined in relation to the wool available in this country at the outbreak of war.430WA In fixing the level of selling prices by the Control which will operate from March 1, it has been necessary to take into account the replacement cost of Australian and other wools from abroad which have been bought at a substantially higher price level, with higher costs of importation. The new prices have only been fixed after full and careful inquiry and the Minister of Supply is satisfied that they are reasonable and necessary. Wool already taken over from United Kingdom growers has been purchased at prices about 10 per cent. above the pre-war level, except for certain varieties which are largely exported unmanufactured.
House adjourned at sixteen minutes before six o'clock.