Government Guarantee For Flax Industry

Chronicle (Levin), 6 May 1948, Page 3

Government Guarantee For Flax Industry

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.DUNEDIN, May 5. .The Cjpv.ernmenf . ('.has deeided to gugrknf e'e .fpr 10, yeaiys. the p'urchiise of .tlie" tbt'al /■aiinual ( .pfpduetipn ' of t phormiuni. teiiu?f-tflbre at:.prices' to' be iixed ffo'pj "time.'t.p tim'e. • • 'j ' ; ' ( . . . Aiuip(upc;ing .,thiso; this'.- morniilg ' the, Ajinistei' of j Iiiilustries '.'4^4 Gpmnierce/ (IVfr. Nprdihlbye]:) haid that thik guarau'.. tPe Vould'lgive tlie grovv'e'rs and iiiillers' of phprniiuin tenax an "as.^urrance" that the.future of tlie (flax.miliing industi'y way iiow ori a flx'm baslis, and that longterm- plan's eould be "made with tli'o . knowledge that stab'le; priees and eonditibns Would continue. - ' The present supplies of green leai are insufticie'nt ,to meet the' Dominion 's needs for the manufacture of woolpacks, ropes, binder, and baiing twiue, and so on," said Mr. Nordmeyer, "and is phormluin is not an annual crop, but tequires between iive and six years from he date o'f planting to ' the stage when a return is available, millers and growers have been reluctant to establish tlie idditional areas required to hieet the present and future needs. With the guarantee now given by the Government and the recently-establislied guaranteed price structure,. the millers are assured of priees :whieh Will allow theni to- pay the royalty ■ to ,the growers of the griien leaf compiring .'jpavo'u'rably with 'tlie -ro-' toru obtadhaBle fof sheep .'grazing,' 'and ;tMs.shonl(T'Iaffdi,l suffiOieht encoo'hig'ement tog- ensure nthe ' dfevelopinient qr* preservatioji "'of Rareas "'-suitable forphormium tehax: 'growing. ' ' -