LOCALLY GROWN TOBACCO

Hokitika Guardian, 10 July 1931, Page 7

LOCALLY GROWN TOBACCO

DEMAND INCREASING.

EFFECT OF REDUCTION IN WAGES.

CHRISTCHURCH, July 7. One of primary industries w New Zealand that is benefiting considerably as the result of the recent reduction in wages is that of tobacco growing. A representative of the tobacco trade stated yesterday that some lines of tobnco made from New Zealand grown leaf had increaed in demand by fully 100 per cent during the past year. Much of this increase in the demand he explained, was due to the higher duties imposed last year on imported tobacco, more particularly manufactured cigaretes. He remarked that It was early yet to say to what extent the reductions in wages had affected the sales of manufactured cigarettes, but there was direct evidence that a much larger number of people were now rolling their own cigarettes. “Since the duty on cigarettes was increased last year,” he said, “the sale of manufactured lines, both imported and local, have dropped fully 20 per cent. Several bands which formerly met with a good demand are now practically off the market and sales are largely restricted to a few well-adver-tised lines.”

THE COUPON SYSTEM, The introduction of the coupon system had not increased the total sales of cigarettes but had merely concentrated the demand on the lines with which coupons were given away, he said. It was quite obvious that the higher prices that had to be charged as a result of the increase in the duty had resulted in many people rolling their own cigarettes. ' This tendency had directly increased the sales of New Zealand-grown leaf and also of tobacco suitable for cigarettes which were manufactured in the Dominion from imported leaf.

With regard to the effect of the reductions in wages on the sale of cigarettes and tobaco the speaker said that it was not possible to give any reliable information. Because of the possibility of a further increase in the tariff this year many retail firms had ben buying heavy stocks so as to be in a strong position should the duties be raised. That sort of thing always happened when there was a suggestion of tariff increases, but personally he thought it unlikely that the duties would he raised this year.