THE HEMP INDUSTRY.

Manawatu Herald, Volume LI, Issue 4463, 10 June 1930, Page 4

THE HEMP INDUSTRY.

WHY STATE SHOULD HELP. Auckland, June 6. A comprehensive review of the (lax industry in New Zealand and an outline of some of the reasons why it is suggested the Government should stabilise the industry were given by the president of the Northern Fiax millers 'Association (Mr. E. 11. Broad) at a meeting of the association to-day. It was stated that practically all mills were closed at present and would remain so until the market rates improved or some other means were devised to save the industry. Some concern is felt by members that the enforced closure of the mills will mean a severe attack to the excellent market that was being built up for the •New Zealand commodity. The production of fibre had steadily declined, said Mr. Broad, as the figures of exports from New Zealand over the last 32 years would show: —1897, 2709 tons, £30,674; 1907, 28,547 tons, £832,068; 1017, 23,516 tons, £1,197,396; 1927, 16,189 tons, £473,221; 1929, 13,252 tons, £337,908. Apart from business being unprofitable, leaf supplies had dwindled. The latter difficulty had been overcome by the growing of plants from seed. Plantations were now being laid down and the industry was well on its way through the transition stage. The cost of production had been increased during the past three years, both Government and local body taxes rising, while accident insurance had increased through an alteration in the law. Those extra costs had to be faced on the falling market and the miller could not in any way pass the burdens on. He depended entirely on the world’s parity for the price of his hemp, and the world’s parity of costs was indisputably lower than costs in New Zealand.

After showing' that in granting assistance to the industry the Government would be helping: its own departments, especially railways, Mr. Broad gave details of mills -which used the railways to rail their hemp, the freight on which was about; 21)/- a ton, to ports of export, principally Auckland and Wellington. Special facilities had been provided at the ports, and the absence of trade would he a great loss to them as to the labour employed on the waterfront. Tariffs were not sough! by the millers. It was believed that certain Governn.on departments had contracts with the makers of cordage for the supply of cordage from sisal which was not worth a penny piece more Ilian cordage made from New Zealand llnx. It was, however, whiter in colour, and therefore naturally became soiled more easily. WHY HELP SHOULD BE GIVEN.

The main points why it was considered important to stabilise the industry on the lines suggested by the association were that plant process and business could be and were being improved, that Government departments, the railways, shipping companies, and harbour hoards would be heavy losers if ihe industry ceased, that the industry was in a transition stage and when established could repay the stabilisation advances, which would bring into the country large sums of foreign money far in excess of the intrinsic value of the advances; that no Government could he attacked for carrying out the scheme because of its national importance and the benefits that would accrue to the Budgets, bankers, railways, shipowners, harbour boards, merchants, and traders; and finally, I hat it would consolidate another valuable national asset. At present a large number of men employed by mills was thrown out of work, l'f operations were stopped altogether the asset of the land, which in most eases was useful for no other purpose, and the buildings would be lost, and machinery and mills costing many thousands would be rendered worthless.

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