Wool Board changes levy to a flat rate

The Wool Board has announced changes to the industry levy to apply from July 1, from a calculation of a percentage of the wool's value to a flat 7c/kg.

The flat rate will apply to the greasy weight of shorn wool and the actual production weight of slipe wools.

Wool Board chairman Bruce Munro said it was appropriate to set levies according to the value of wool when they were used to fund targeted marketing programmes, with higher value wools receiving greater promotional support.

But now the levies only fund research, technology transfer, training and other "industry good" programmes, it was appropriate to change to a more straightforward, flat rate across all wool categories.

"It is an anachronism that fine wool growers and other producers of high value wools have in effect been paying higher levies per sheep than other producers," he said.

Mr Munro said the changes would cut the levy income received, with a substantial drop in merino and mid micron levies, but the overall effect for the crossbred wools the make up most of the clip would be neutral.

SheepCo chairman Mike Petersen said his company, which would continue some aspects of the Wool board's work after board deregulation, fully supported the move to a flat levy.

"It is helpful that the board paves the way for this change now," he said.

The current levy, calculated as a percentage of value, in effect penalised the production of quality and high value wools.

"A cents-per-kilogram levy is more equitable and transparent as it generates broadly the same levy from each sheep," he said.

"This better matches the industry good benefits that are delivered from levies."

Wool growers would be consulted on the range of activities to be undertaken and the levy that would be paid after deregulation.

"Our extensive consultation programme is indicating farmers want to see some further changes," he said.

"These will be reflected in the proposals that will go to growers when they vote on future levies."