THE HEMP INDUSTRY

Manawatu Herald, Volume LI, Issue 4489, 9 August 1930, Page 2

THE HEMP INDUSTRY

FLAXMILLERS’ losses. HELP REQUESTED. MINISTER SYMPATHETIC. The unsatisfactory condition of 11 1 o 11 ax mil I it)" industry was pointed out bv a deputation which wait - ed upon 'the Minister of Industries and Commerce, Hon. P. A. de a Perrclle, and the Minister of La--1)onr, Hon. S. 0. Smith, on Thursday. A request was made that the Government should assist the industry diming- its present difficulties |,V granting a sliding scale ol: subsidies on wages in order to ensure a |no lit able return to the millers. Mr. Perrclle said he sympathised with the industry in its troubles ainl lie promised to refer the. question to Cabinet. The deputation was introduced by Mr. -I. Liuklnler, M.P., for Ala-n.iw.-ntn, who said the request, to he made was on behalf *»f- the New Zealand Klnxmillers’ Association, the N'orthern Millers' Association, the South Island Millers' Association, and the New Zealand flaxworkers' L'nion.

The principal spokesman, Mr. H. Gieig, mentioned that Max was (lie lirst product exported from New Zealand. f rom .1909 to I Mg!) Ihe value of hemp exported reached a total of over £12,1)00.00(1, Iml, ow- ! in«;■ In the recent world-wide slump in the value of eommndities, it was n,iw impossible for tin* industry to be carried on except at a heavy loss. The New Zealand Flaxmillers’ Association had been engaged tor some time in formulating a scheme which would have the effect of tiding over the period of depression. There were probably 70,000 to SO,00(1 acres of land in the Dominion carrying crops of self-planted Max, and within the last two or three years over 10,000 acres had been cultivated and planted.

PROSPECTS UNFIT,PILLED. Much of the land was unsuitable for any other purpose. Were it not for the unexpected fall in prices the prospects ahead of the industry would have been very bright. It was essential that a steady supply of hemp should he available to the trade, hut if manufacture were stopped for a season it would lie difficult to restore it on the market. There was ample raw material available to continue production at the same rate as last season, when 12,000 tons of hemp were milled. Even at the low price, of £2O a ton, that would represent an addition of £240,000 to the value, of'exports and, payments direct to the workers i imaued about the mills of £IBO,000, besides being helpful to coal miners, transport workers and

1 4hers. It was estimated that 1500 men were employed about the mills.

GOVERNMENT HELP. Tt was requested that- the Government should give help by way of c sliding scale of subsidy on wages, the amount, of subsidy being suflieient to make the return to the miller equal 'to £25 a ton, f.o.b. For instance, if hemp were, selling at £25 a ton no subsidy should he paid; if selling at £2-1, a subsidy equal to £1 a ton on production should lie given, and so mi. ft was suggested that the wages subsidy he paid to the individual tlaxmillers monthly on the actual amount of hemp graded as shown by tin* olli • eial hemp grading- returns for the previous' month. In addition, it; was suggested that a committee, consisting of an officer of the Department of Industries and Commerce, and one representative each of tin* hemp merchants and flaxmillers, should he set- up to <le- ! ermine i lie market price each month.

S])(*;iking <m behalf of the mer--1 hauls, Mr. 1,. (■ ohlliuch said it was not. desired that tlir Government should protect tlir profits of the industry liy giving a subsidy. Even itli a subsidy to ensure a return of ,t:2o. I lie mills would nol be

workiuy al a profit. Mr. I’. T. lioliiiisou, on helialf of i lie employees in the industrv, pointed out that the (iovernmenf bad from lime to lime subsidised other industries. If the (iovernnnuil did not subsidise this imlnsli.v, it would be iim'ssarv for the (biverninent lo provide relief work I" 1 ' ilie nieu in the industrv. As nmidi ol that class of work was non-productive, Mr. Robinson sug-

gested it would be a wiser course lo subsidise the industry. There " i'l'e about ‘Atltl men out of work in ike I'oxton 1 1 istriel at present, lie ''l. while there was also unein ploymenl al Shannon.

A M.ATTER OF POLICY,

'Replying on behalf ol' himself •■'i'll Mr. Smith, Mr. I’rrrellc said lie regret led to lira! the industry "as unable to command better pri - |es 'for its produet. lie realised t li<* importance of the iViptcsl and lie sympathised with ii. However, as a matter of policy was involved, il would necessarily lmve lo be placed before Cabinet. He Would .put the full facts ol Hie ease lielore Cabinet, and lie I bought it likely Iha I tile request would be reasonably met if al all possible. That all depended, of course, on whether the money could be found. He hoped In be able to place before Cabinet shortly some of his own views with regard to the fostering id' industry.