FOR PRESS PM'S NO S-4/ 72
WOO 0L
Statement by the Prime Minister, The Rt Hon. William McMahon, CHMP.
The Government has agreed on the creation of a single wool
marketing authority to be known as the Aus-tralian Wool Marketing
Corporation, which will operate on a commercial basis.
The functions of the Corporation will cover those currently
specified in the Wool Industry Act and the Woo. Commission Act.
The Government has also decided that the Corporation should
have power to recommend to the Government from time to time chanqes
which it considers to be necessary to control the marketing of thq
whole clip. Before granting a pcwer of acquisition the Government would
require a submission or submissions for consideration relating to a
comprehensive acquisition scheme which is acceptable to the wool
industry, the State Governments and -the Commonwealth.
In any proposal submitted to the Government for acqulition,
the Corporation would be required to submit * proposals substantially
in accordance with the following financial safeguards
A statutory requirement that the Corporation conduct its
operations on a striCtly commercial basis.
A statutory requirement that the deductions from sales
proceeds made in arriving at net payments to growers
shall be sufficient to meet all trading costs ( interest,
( storage, handling, administration etc.), and to provide
for the accumulation of reserve~ s ag~ ainst the contingency
of losses being incurred.
A statutory provision that on the commencement of an
acquisition scheme the existing Commonwealth commitment to
meet * losses not covered by earlier surpluses shall not
apply for the future elimination of Section 25( 5) ( b)
of the Australian Wool Commission Act 1970).
The amount, method and timing of payment which may be
recommended by the Corporation to the Government for
approval shall be subject to and above.
A statutory requirement that the Corporation's policy
on holding stocks of wool ( and hence its pricing policy)
shall be determined in consultation with the Government.
Mf The Corporation may with tha approval of the Government
abolish the PAP scheme and recommend another scheme.
It is the desire of the Government to ensure the retention
in the marketing system of efficient commercial innovators where
consistent with the overall objectives of efficient marketing.
The Government has decided that for the year 1972/ 73 only
the deficiency payments shall be the same as for the present season
1971/ 72. The question of underwriting the industry by way of direct
subsidy or otherwise has been dealt with as an issue separate and
distinct from both market reform and acquisition.
Canberra June 1972.