My daughter recently crocheted a baby's shawl with a well known brand of
baby wool but when she wet it to stretch it, the dye came out.

She pinned it out and dried it, but because it is circular, there are joins in the yarn.

I said next time use a cone, and I found a Perth stockist of WA coned wool!!!

I am doing Fair Isle knitting again, and till now have used Bendigo wool, but they do not have 4ply, only 2ply doubled

This place does. I am now looking into prices for both of us as she likes pure wool and willing to pay for it. It's Called Bilby Yarns and is in Booragoon. There's another stockist of cones, mostly British mills as far as I can see, in Highgate. I used to machine knit as well, but not for years.