FLAXMILLS INDUSTRIAL DISPUTE.

Manawatu Herald, Volume XLIX, Issue 3858, 16 October 1928, Page 2

FLAXMILLS INDUSTRIAL DISPUTE.

- INSPECTION OF MILLERS BOOKS. CANNOT OPERATE AT PROFIT. WITHOUT APPRECIABLE' REDUCTION. The following is the statement by Rt. Hon. the Prime- Minister upon results of accountancy Investigation carried out by the Department of Industries and Commerce in connection Avith the recent flaxmilling dispute:— “The parties at the Conference on the 29th August agreed that an investigation should be made by the Department of Industries and Commerce of the accounts of flaxmillers, and that at a subsequent meeting I should express in general’ terms my opinion as to the justification or otherAA'ise of the. employers’ request for a reduction in Avages to a level ten per cent, beloiv award rates. It .was contended by the mill-owners that having regard to existing market prices for hemp they could not in general operate at a profit if the award rates Avere maintained. “It was further agreed that the investigation should cover at least three mills AA'hioh Avere named. “FolloAving the terms of that agreement, an investigation has duly been made of the accounts of these three mills, and in addition, by agreement of the millers, the books of tAVO further companies were covered. This had the effect of broadening the basis of the enquiry and should be more satisfactory to all parties insofar as it tends to avoid the risk of a decision being based on insufficient eA T idence. I may mention that the five firms referred to Avere responsible last year for the production of approximately forty per cent, of the hemp produced in the' Wellington Province. “I have carefully considered the report submitted to me by the Department and am satisfied that the investigation has been carried out with care and impartiality. “The general tenor of the discussion at the Conference on the 29th August Avas such that I do not consider myself free to traverse in any detail the matter contained the Departmental report. “While the financial results of the five mills vary considerably I can say Avith conviction that during the past trading year the profits have, speaking generally, been relatively low. “I am further satisfied that Avitliout an appreciable, reduction in costs of manufacture, present day prices for hemp will not in the main ailoAV of operation at a profit. “A reduction of 10 per cent, in wages beloAV award rates Avill not result in manufacturers generally making- more than a comparatively sinall profit. “I regret to have to report that the industry is in this position but the facts do not ailoAV of any other conclusion.”