THE HEMP INDUSTRY.

Manawatu Herald, Volume XXXVIII, Issue 1533, 8 April 1916, Page 2

THE HEMP INDUSTRY.

A GRAVE SITUATION. MILES MAY HAVE TO CLOSE. Lack of shipping space. The shortage of shipping space, especially for flax, was the subject on which a deputation representing the New Zealand Flaxmlllers’ Association and Hemp Sections of the Wellington, Auckland and Canterbury Chambers of Commerce, interviewed the Prime Minister (the Rt. Hon. W. F, Massey) at Wellington on Thursday, Mr W. H. Field, M.P., introduced the deputation. He said that the shortage of shipping space had become a very serious matter to the hemp industry, and flaxmillers and exporters had come to the Government for assistance. They knew . that Mr Massey had been very successful in his efforts to afford relief to other branches of industry, and hoped that their own branch would receive from him sympathetic consideration. Men engaged in the industry realised that unless some arrangement were made, the mills would have to close down. Mr A. E. Mabin said that the trade had come rather suddenly to a dead end. The loss of the Matatua and the Rangatira, and the recrudescence of the submarine campaign had produced a situation ot a very grave kind for the flax industry, so that it could not carry on any longer without relief. Some 26,000 bales of flax were now in store, and the mills were producing at the rale of 19,000 Bales per month. If the mills continued to work, the total in store would reach 83,000 bales by the end of June. The ships available in April and May would take scarcely any flax at all, and the amount lifted in June would not cover stocks now in store. The men interested in the matter had considered the situation, and had decided that unless the situation . changed materially they would have to doss down their mills at the end of the present month. The mill owners would give notice to their hands at once. This step would be a serious matter for the millers and exporters. It would mean a loss of .£IOO,OOO a month to New Zealand exports. The deputation wished to know whether the Government could not help by representing the needs of the situation to the Admiralty, or by other means. The necessities of the war had to come first, but it might be possible to rearrange matters on an improved footing. The millers and exporters were prepared to meet very heavy charges for insurance and freight. They could understand that difficulty was being experienced in shipping wool.

Mr Massey: We can see our way to get all the wool away.

, Mr Mabin : We think the wool sometimes gets a better show than the flax.

Mr Massey : The shipping companies prefer wool. That is well known. Mr Mabin said that if relief were not afforded, the mills would have to close down lor two months at least, .probably for a longer period.

Mr Alfred Seifert said that the exporters had said plainly that they could not continue to buy flax under present conditions. They would have to cancel their contracts. The millers in these circumstances were laced by the necessity of closing their mills, unless they could be assured of an outlet for their product. This would be a very serious matter, not only for the mill owners, but for a large body of workers. The stoppage of the mills in May and June was normal, and they could face it, but a stoppage after June would be a grave matter. He added that the industry was worth a great deal to New Zealand, and the millers hoped the Government would be able to assist them in some way. “We are face to face with a serious difficulty in connection with shipping space,” said the Prime Minister in reply. “The trouble has been accentuated by the loss, temporary or permanent, of the Matatua and the Rangalira. I think that the position is going to improve in a month or two, but I cannot be certain about that in these times of war. Eleven steamers are expected to come here in June lor loading, and the situation will then be relieved materially ; but in the meantime we aie going to have trouble. I am in almost daily communication with the Imperial authorities, and havs represented the needs ol the Dominion to them very fully, I can say this, that New Zealand has no reason to complain about the way the available shipping space has been allotted. The Dominion has been treated very well indeed. Several of our traders have been released at my request, after they had been commandeered for war service. Recently one big ship, which had been commandeered, was seat as an Imperial ship to load meat. The Imperial authorities are doing what they can in the face of exceptional conditions.” The difficulty with regard to flax was that it occupied more space in proportion to weight than any other article of export, and consequently the shipping companies were not anxious to take it when they could fill up with more profitable cargo. It was not only with flax and wool that trouble had arisen. The Government required a certain number of ships at present to carry coal to the Admiralty, and the Goverment had had no end of difficulty in getting coal ships. The Premier also referred to the shortage of

ships for other purposes. Cheese and butter were piling up in the stores, and he saw no prospect of getting the produce away for the next two months. He appreciated the flaxtnillers’ difficulty, and he realised the importance of maintaining the export trade. New Zealand lived on her exports, and flax had contributed in a high degree to the prosperity we had enjoyed. He would' ask the Imperial Board of Trade if they could supply a cargo ship to carry such commodities as flax, tallow, etc,, of which there were accumulations in stores. He did not know whether a ship could be supplied. The position was simply that the Imperial Government had commandeered about 30 per cent, of British shipping for its own purposes. It was not possible to get any ships at all now. Mr Field : Does the Imperial Government fully understand the difficulty we are in ? Mr Massey: They understand it thoroughly, and New Zealand has no reason to complain. They have done their very best for us. Certain details were discussed, publication of which is forbidden. . MILLS TO CLOSE DURING MAY AND JUNE.

The flaxmlllers have received advice from exporters that owing to the shortage of tonnage it is deemed necessary that the' mills should close down during May and June. • With this end in view the exporters have decided, in terms of a condition ot their contracts, not to receive hemp during May and June, and the position is that millers will have to cease sending hemp into store after the end of the current month. If any hemp is delivered after the end of this month it will be held at the miller’s risk, and will not be paid for under contract. As far as tow is concerned, the exporters ask that millers should arrange for the storage of same on their own account as from yesterday. The circular concludes with the statement that no steps will •be neglected by the exporters to find some solution of the difficulties and bring about a resumption of milling.