TOBACCO INDUSTRY

Hokitika Guardian, 30 October 1930, Page 8

TOBACCO INDUSTRY

PROSPECTS IN DOMINION. WELLINGTON, October 22. In the House of Representatives. Mr G. C. Black (Moteuka) pre.tilled the report of the committee on the tobacco industry. The report is an extremely lengthy document, and contains a large number of recommendations. in,/.tiding suggested amendments to the Tobacco Act and alterations in the duty oil imported tobacco. Other recommendations include the removal of the control of tobacco culture from the Division of Horticulture to the Department of Agriculture, and placing it under the supervision of a tobacco expert, to be appoiiued by the Government, and to be known gs the director of tobacco culture; the appointment of an advisory council, consisting of four representatives of tobacco growing districts, to 'assist the director, and the examination ,oi samples from abroad of tob«ceo leal, to enable a knowledge to be obtained of the quality of the leaf against which- the’ lodal grower, might be expected to compete on either the local ii- the export market.

It is further recommended that full advantage should be taken of the offer recently made by the Empire Marketing Board, and that research experiments should be undertaken without delay in respect to quality, aroma, combustibility, and other characteristics of the New Zealand tobacco leaf; that the export standard should be revised with a view of setting up a new standard of grades, more in conformity with world standards; chat periodical, tests he made of markets in the United Kingdom and Australia with 1 selected parcels of New Zealand leaf; that in view of published statements appearing jn several u'ospectuses of tobacco growing companies recently registered, the Companies Act should be amended in the direction of requiring the. consent of the permanent head of the. Department of State to the publication of any statement hv any officer of suc-n department; that the bond series of tobacco growing companies issued for public subsription should also ibe registered under the Companies Act, and, further, that the law should bb .amended to make this principle apply to the bond series issues by any con•ern registered under that Act; that the Government be urged to come to an early decision in respect to the recommendations of the committee to enable the tobacco growing and manufacturing industries to- be placed on n stable basis, especially in view of the, fact that certain of these recommendations relate to tariff mat-

The committee, m the course of its report, deals with the quality of the New Zealand loaf, and states': “Weighing up the expert and other evidence tendered before us, we are definitely of opinion that a New Zealand leaf has boon grown of a standard equal to any grade other than the best Virginian, and that suoli results have been obtained without the usual experiments, extended over a period, as have been carried out in all. other countries.”

; Mr W. E. Barnard (Napier) said the committee was of opinion, on the evidence adduced, that Nelson and district were best suited to tobacco growing, having an advantage owing to sheltered conditions. It was clear to the committee that the evils which had sprung up in the issue of bonds in connection with forestry companies had spread to the tobacco industry. Ah amendment of the Companies Act was needed, with a view to placing restrictions on offers to the public and to control highly speculative shares and bonds. Mr AY. J. Poison (Stratford) said the recommendations of the committee would help growers and encourage the local manufacturer of tobacco. Hie committee was satisfied there was not only a possibility of local expansion, but also of an export trade. After further discussion the report was referred to the Government for favourable consideration.