FLAX MILLING IN NEW ZEALAND

Press, Volume LXXIV, Issue 22518, 28 September 1938, Page 15

FLAX MILLING IN NEW ZEALAND

“ Industry Virtually Moribund” COMMENT IN SUPREME COURT JUDGMENT [THE PRESS Special Servlce.l WELLINGTON, September 27. “Admittedly the flax industry is virtually moribund at the present time, and has been so for many years,” said Mr Justice Blair in a judgment delivered in the Supreme Court to-day. “The production of dressed flax is called one of New Zealand’s primary industries; but strictly speaking this is not an accurate term, inasmuch as some 60 per cent, of the value of the dressed fibre is represented by the labour cost in cutting, milling, and finishing the dressed fibre. “In the Foxton and Manawatu districts, where at one time numerous flax mills operated, there are only two mills now working, one of them being for a rope and twine-making mill, and the other for the recently-started industry for the manufacture of wool packs,” continued his Honour. “This latter industry is subject to very special Government assistance, and in order to ensure the use of its manufactures, regulations have been made requiring all sheep farmers to use a certain proportion of flax wool packs, instead of imported jute wool packs. Over and above this special assistance, any flax manufactured gets the benefit of a Government bounty of some £7 10s a t<vi in an endeavour to reestablish the industry; but, so far, with indifferent results. With few exceptions, flax mills in the Dominion are idle, and there was no evidence given of any revival of the industry. Operating costs and low prices have killed it.”

Had there been a market, it was obvious that many of the mills now closed down for want of a market and the high cost of labour would have been reopened. “The chart put in shows that in the year 1917, New Zealand-dressed fibre brought more than £SO a ton, and since that date the price has gradually fallen until, in 1936, it was worth only £lB 7s a ton,” said his Honour. “In 1938, there was a slight rise to £24 10s a ton, this figure being stated to be nominal. The quantity exported has fallen from 28,000 tons in 1917, to 5200 tons in 1937. Wages in New Zealand have greatly increased, which is another factor militating against the revival of the industry.”