THE FLAXMILLING INDUSTRY.

Manawatu Herald, Volume XLIX, Issue 3822, 24 July 1928, Page 2

THE FLAXMILLING INDUSTRY.

A BAD YEAR, The annual meeting of the Northern Flaxmillers’ Association held in Auckland last week,* the chairman, Mr. E. L. Broad, Tauranga, said the past year has been one of the worst the flaxmilling industry had passed through. The market fell steadily, the drop in prices amounting to £6 a ton, and there appeared to be no sign of an immediate improvement. While prices fell costs remained high. The Government had intimated that no subsidy could be granted when the price of hemp fell below £25 a ton. Mr. W. Ferris, chief fibre expert of the Department of Agriculture, had been appointed to travel round the mills and assist millers to improve the grades, and a phormium committee was set up to work in conjunction with the Department of Industries and Commerce.

Acting on a suggestion put forward by the association that work for the unemployed could be found on flax lands, the Government had commenced planting on a 500acres block in the Hauraki Plains, and it was understood the extension of the scheme was under consideration. As a result of the'society’s efforts, naturally-planted flax had been exempted from taxation.

The following officers were elected: —-President: Mr. E. L. Broad, Tauranga; vice-president: Mr. F. Douglafl, Mercer; secretary: Mr. E. T. Frost, Tuakau.

MILLS UNABLE TO CARRY ON,

Owing to the low prices ruling for fibre, the opening of the flaxmills in the Manawatu has been delayed indefinitely, but, should the men agree to accept lower than the Arbitration Court wages, the mills will start up almost immediately. Questioned regarding the position, Mr. H. A. Seifert, president of the New Zealand Flaxmillers’ Association, stated that hemp prices were at present lower than they had been since 1922, and that, owing to the Arbitration Court award last year, wages paid were higher than at any time since the boom years of the war period. On the previous occasion when prices were as low as they now were, the minimum wage for a three-year period was 13s per day, and in November, 1924, the millers voluntarily gave an increase of Is per day, owing to the improved price then being realised for fibre.

During the past year the market had steadily declined, and there was no prospect of improvement before the new year. Most millers were unable to operate on present prices and present costs except at a loss. To enable them to carry on they had approached the union asking for a reduction in wages, and the matter was at present under discussion and an early settlemen was expected. “In the event of the union deciding to agree to lower wages,” concluded Mr. Seifert, “the mills will be re-opened almost immediately.”

CONFERENCE BETWEEN MILLERS AND EMPLOYEES.

A conference between representatives of the Flaxmillers’ Association and Union officials was held at Shannon yesterday. The position was reviewed and both parties submitted proposals which will be considered and a further meeting held at a later date, when it is hoped that a compromise will be agreed upon.