FLAX INDUSTRY

Hokitika Guardian, 10 May 1930, Page 3

FLAX INDUSTRY

REQUEST FUR ASSISTANCE.

lIEMi» i\OT REALISING; cost,

AUCKLAND, May 6

‘"I le position is absolutely desperate io far as the industry is concerned. It is simply force of circumstances which lias brought us to you to-day.” The above statement concerning the Zealand flax industry, was made

when a large and infl tie tidal (ieputiuion waited this morning upon the Hon. G. AV. Forbes, a 3 .Minister 'for Agriculture. \ The Leader of the Opposition (the Hon. J. G. Coates) said-thdt up t-i March 31st, 192.9, the to'hi export of flax amounted to £402,421. The price of fair hemp had" receded from '£2s a ton, and now• stood 10s. At times when New Zealand hemp wa.s not available, sisal. ;ivaSi. substituted. It was vital to the New Zealand industry to keep up a steady supply.

At the present time the prices quoted

were below the cost *of production. What the deputrtf ku desired was For the Government to, introduce a stabilisation fund to see the industry o,vev the winter. Approximately £4OOO was

necessary, and it. was considered a reasonable request. Hundreds of work- ! ers were employed in the industry, and they were prepared to make a sacrifice by taking lower wages. 1 Mr lE. L. Broad. niesident of the Northern Flaxmillers’ Association, said the hemp industry was in a deplorable condition. Representatives were present from all the mills' concerned. He referred to the fact that the Commonwealth, Government Had introduced a b'ounty on linen, flax, apd linseed. Mr Forbes: Was that, not to establish it? ' f Mr Bro°d seto i+, : w"?' important that the industry should be kept alive. The Government harl already assisted -the iron’ pig, fruit, and wheat growing industries. If assistance were not given the flax industry 17 mills in the Auckland district,, employing between 350 and. 400 men, would be closed down. Most of the men were married. In addition to the men ’ directly employed manv Others would be affected; They had reduced the cost of production to the lowest minimum, and wanted the Government to fix a minimum price for fair hemp at £25 a ton. By a contribution of £4OOO, the Government rn”V> stabilise the fund. If the price of hemp exceeded £25 a ton the millers would be prepared to refund an equivalent amount. Mr E. T. Frost said, in reply to the Minister that 'he of hemp was now at, the lowest point since the war. If the Government acceded to the request £30,009 of exportable product could be accumulated in a few months. The question of men being out of work was very serious. If the Government had to find work for the men at 14s a day it -would amount to far more than £4OOO. The Minister asked what would be. the position if the market did not come back to normal after the winter.

Mr Frost: Then the question would have to be reconsidered.

Mr Forbes: Then the subsidy might be indefinite.

The Minister said he realised the importance of the industry, and the, representative natures of the deputation. Where unemployment was concernqd the question wfts important to' all. He did not want to see any tnore men out of work. Ahvthing that would keep the men employed would have serious consideration. A subsidy was a question for the Minister of Finance. At present New Zealand was faced with wool being below production price, and there was a serious drop in other primary products. The question had.to he looked at comprehensively. He did not think that the position had been overstated. He would consult the Minister for Finance in the matter.