1960-1969: Birth of New Institutions and Concepts

1959

The new Director of AWTA, Dr J A Dixie establishes a condition testing facility in the Scott Henderson building at 9-13 Young St, Sydney.  The same building contains a private laboratory owned by C W Jarrett.  Dr Dixie purchases the equipment and employs Charlie Jarrett to manage the laboratory.

1960

At the request of Australian wool growers, the wool promotion levy is further increased to 6 shillings per bale .

The Australian Wool Bureau and the Wool Boards of New Zealand and South Africa adopt a plan to reorganise IWS and to expand its wool promotional activities. The chief features of this plan are:

• Reconstitution of the Secretariat to vest control in a Board of 7 members nominated by Australia, 3 by New Zealand and 3 by South Africa, thereby recognising the major contribution (62%) of Australian wool growers to IWS finances. All decisions to be made on a majority vote.
• Re-organisation of administration into 3 promotional zones - Europe, Asia and North America. Each zone is to be managed by a Regional Director reporting to the Managing Director.
• A substantial increase in expenditure on wool promotion and research over the next 5 years.

The South African Goverment passes the Wool Commission and Wool Amendment act, establishing the South African Wool Commission as a separate corporate body.

CSIRO completes its development of hand operated pressure coring equipment and publishes its guide for the manufacture and operation of this equipment.

1961

In response to wool grower concerns about wool prices the Australian Government establishes the Wool Marketing Committee of Enquiry, consisting of Sir Roslyn Philp, Mr M.C. Butterfield and Mr D.H. Merry. The terms of reference were:

• to enquire into the present systems of marketing and of promoting the sale of the Australian wool clip and matters relating thereto, and to report upon the efficacy of these systems;
• to report upon the merits of any other systems or of modifications of the present systems whcih may be advocated to the committee of enquiry or which the committee itself considers would be of long-term benefit to the wool growing industry and in the best interests of the nation

At the request of wool growers, the wool promotion levy is again increased, this time to 10 shillings per bale. This rate is to apply only to June 1962. The rate to apply thereafter will be reviewed by growers in March 1962.

Members of IWTO resolve that while price fluctuations are a disadvantage to many users of wool, they would prefer to suffer such a range of fluctuations as occurred during 1959-60 and 1960-61 rather than face uncertainty arising from the accumulation of stocks in the hands of a marketing authority.

1962

The Wool Marketing Committee of Enquiry presents its report. It concludes that:

• a reserve price scheme is inadvisable;
• an acquisition scheme is inadvisable;
• an equalisation or pooling scheme will not offer sufficient improvement over the auction system to warrant its general introduction;
• a grower owned cooperative buying organisation is unlikely to result in any substantive improvement to the existing marketing system;
• a system of central appraisement and sale of wool at auction raises possibilities for improving the existing system.
• wool prices may be influenced by research and promotion.

With regard to marketing the Enquiry concludes :

• There are not sufficient advantages in any alternative proposal at present to warrant its adoption in place of the existing auction system.
• In view of the possible growth of forces in the auction system that may disadvantageously affect competition, the industry should place itself in a position to move to some more appropriate means of marketing its product if and when this move appears desirable.
• There is no evidence that Futures Trading is destabilising prices in the physical market.
• There are a number of means by which the auction system can be improved, and options requiring examination including:
• Lifting the standard and uniformity of classing, improved techniques for bulk classing, including the scientific test for yield, more widespread adoption of interlotting and introducing central classing by district.
• Introducing and export standard
• Mitigating effects of weight changes by core-testing.
• Reducing jute contamination
• Optimising weight and size of bales.
• Compiling and publishing authoritative reports of price movements and other statistics.
• Wool selling regulations - lot splitting and lot size.
• The number of selling centres.
• Length of the selling season and distribution of types throughout the season.
• Handling costs, delivery, transport and shipping arrangements.

The Enquiry proposes the establishment of an Australian Wool Commission which will manage total financial resources of the industry allocated to marketing, promotion and research. It proposes a suggested structure for reorganisation of the industry.

It stresses the need for research and promotion to be integrated, but also for policies, including the allocation of funds between research and promotion, to be flexible to meet changing circumstances.

It concludes there are advantages in having the complete co-ordination of promotion programmes in the hands of one organisation - namely the International Wool Secretariat.

(see Summary of Conclusions and Recommendations)

The Wool Industry Act 1962 establishes the Australian Wool Board. with the following functions.

• to promote the use of wool and wool products in Australia and other countries;
• to inquire into, and from time to time report to the Australian Wool Industry Conference upon, methods of marketing wool and any other matters connected with the marketing of wool;
• provision of testing services for wool and wool products (this is administered through a subsidiary body retaining the name Australian Wool Testing Authority);
• administration of wool research;
• investigating all aspects of wool marketing on a continuing basis;
• maintenance and administration of wool stores; and
• such other functions as are conferred on the Board by thie Act or, being functions conducive to the achievement of an object of this Act, as approved by the Minister (eg wool statistical services, registration of wool classers).

The objects of the Act are:

• to promote the export from Australia of wool and wool products;
• to promote trade and commerce in wool and wool products among the States, between States and Territories and within the Territories;
• to encourage the production, and the use, of wool and wool products in the Territories; and
• to ensure the availability, when a state of war, or danger of war, exists, of wool stores for use for the purposes of the defence of the Commonwealth, and this Act shall be construed and administered accordingly.

Commonwealth enactment of the Wool Industry Act 1962 establishes the Australian Wool Board (AWB). The Board’s functions include provision of testing services for wool and wool products (to be administered through a statutory authority retaining the name Australian Wool Testing Authority).

AWTA relocates its Melbourne Laboratory to Munster Terrace in North Melbourne.

1963

On the 1st May the Australian Wool Board formally replaces the Australian Wool Bureau . To allow an orderly change-over organisational changes are staggered over a period of 8 months, with completion on 1st January 1963 when the Board took over the functions of the Wool Research Committee.

In accordance with Part III of the Wool Industry Act 1962, AWTA was reconstituted as a body corporate responsible to the AWB.

AWTA's Western Australian laboratory is relocated to AWB’s Store 3.

Regular wool selling auctions commence in Albury, Western Australia, and Portland, Victoria. There are now 14 wool selling centres in Australia.

1964

The continuous investigation into all aspects of wool marketing in Australia becomes the responsibility of Australian Wool Board's Wool Marketing Committee. As a result of this committee's investigations the Wool Board recommends to the Australian Wool Industry Conference the establishment of a Reserve Prices Plan within the Australian wool auction system. This plan is adopted in principle by the Conference whose Executive negotiates the final details and places the matter before the Commonwealth Government. The Government examines the plan and promises financial support for it in the event of its approval by wool growers at referendum.

Legislation is passed changing the financing of promotion and research from a flat charge per bale to a percentage deduction form gross proceeds of wool sold. The levy rate is fixed annually, with a maximum rate of 2%, with the aim of collecting $13M from wool growers for promotion annually (compared to $5M under the old scheme) and $1M for research. The Commonwealth Government submits $1 for every $1 collected from growers. Most of the extra promotion funds are passed on to the International Wool Secretariat which also receives increases in contributions from New Zealand and South Africa.

(Sir) William Vines, Managing Director of IWS, presents The Woolmark programme to the Cologne meeting of IWTO.

The Woolmark programme has two purposes. The first is to position wool products at the top end of the textile market, thereby commanding higher margins for the producer, for the processors at every level, and for the garment makers and retailers. The second purpose is to ensure that products bearing the Woolmark label are made from pure new wool and manufactured to the highest quality standards, thereby ensuring that consumers are not disappointed with their purchases and therefore will buy woolmarked wool goods again and again. The Woolmark is also intended to protect honest manufacturers against the dishonest few who otherwise come into the programme with inferior goods and thus denigrate the mark.

IWTO initially rejects the programme. It is considered by the delegates as being likely to inhibit freedom of choice of fibres by spinners and weavers, particularly in their use of blends. Very few delegates believe it can succeed.

IWS then makes a series of unilateral deals with key manufacturers at the highest quality level in each of a number of countries. They become the first licensees. When others see that such prestigious firms are taking up the woolmark, they too become ready to sign agreements. Over the next 25 years licensees increase to 50,000 and the Woolmark ranks with such famous marks as Shell and Mercedes in terms of consumer recognition and understanding.

The AWB makes a unilateral decision to conduct a detailed examination of AWTA’s operations and, pending completion of that study, it decides that all Personnel/Pay matters, payment of accounts and financial reporting will be handled by relevant staff at the AWB.  The conduct of this investigation is perceived as a breach of the intent of terms agreed prior to reconstitution and the Director of the Authority, Dr J A Dixie and the Chairman, Mr W H Lempriere both resign. Mr I F McLaren becomes Chairman and Mr J F P James is seconded from CSIRO as Acting Director.

1965

The Commonwealth Government enacts legislation (Wool Reserve Prices Plan Referendum Act 1965) to facilitate a referendum of wool growers on the Reserve Prices Plan. In accordance with the Act the Minister for Primary Industry authorises the publication of a document outlining the principles of the plan (Reserve Prices Plan for Wool 1965). A statement outlining arguments in favour of the plan is produced by the Executive Committee of the Australian Wool Conference (Arguments in Favour of the Reserve Prices Plan for Wool). Various Graziers and Pastoralist associations jointly produce a statement outlining arguments against the plan (Arguments Against the Reserve Prices Plan for Wool).

The referendum of wool growers closes on 9th December and rejects the Reserve Prices Plan by a small majority (against: 59235, for: 51388, informal: 303). The Wool Marketing Committee continues to pursue its investigation of marketing matters in co-operation with appropriate organisations within the wool industry.

When the findings of the AWB examination of AWTA are reported to the Members of both AWB and the Authority, they immediately accept a key recommendation that the Authority's senior management structure must be broadened to provide specialist wool and textile technologist support for the Director position. Mr C M Scott is appointed Acting Chairmen, replacing Mr I F McLaren and Dr J G Campbell is appointed Director.

Mr L J Yeo is appointed to the Board of the Authority and Mr D J Ward is employed as Wool Supervisor.

The AWB attempts to introduce a Reserve Price Plan, based on a subjective appraisal system similar to that utilised in World War II.  In a referendum of wool growers this proposal is defeated.

AWTA’s Fremantle laboratory expands into AWB’s Store 1.

Following a request from the AWB to provide testing services to support The Woolmark brand, AWTA Textiles Testing is established as a separate Division at 1 Stawell St, North Melbourne.  This laboratory provides the first facilities for measuring mean fibre diameter by projection microscope and by airflow.

1966

The Australian Wool Board decides that special committees, representative of interested sections of the industry, could contribute to the examination of important marginal issues..

Two "Ad Hoc" committees are established, one to consider the private selling of wool and the other to examine aspects ofon-bale lots, bulk classing and clip preparation.

Mr L J Yeo assumes the role of Chairmen of AWTA and Mr D J Ward is appointed as Director, beginning a partnership that will continue for 26 years.

AWTA’s Sydney laboratory relocates to a former restaurant across the road in 10-14 Young St, Sydney.  The restaurant’s kitchen becomes the wet area of the laboratory.

1967

The Amended Wool Industry Act 1967 increases the Government's contributions by $3M-$4M annually to help finance additional expenditure on research. Following recommendations by the Australian Wool Industry Conference the Minister for Primary Industry divides the grower's levy and the Government Subsidy between Promotion and Research.

The reports from the two "Ad Hoc" committees are considered by the Australian Wool Board and the Wool Marketing Committee and recommendations placed before the Wool Industry Conference. 

The Australian Wool Board meets with organisations representing wool buyers, wool selling brokers and trading banks to explain the recommendations presented to the Wool Industry Conference.

1967

The Wool Industry Conference, after a series of 4 meetings, accepts the Australian Wool Board's proposal that a non-statutory Australian Wool Marketing Corporation Pty Ltd be established. It authorises the Board to enter into detailed discussions and planning for the marketing proposals.

1968

The AWB continues its investigation into marketing, and the non-statutory Australian Wool Marketing Corporation Pty Ltd is established.