Stabilising Flax

Sun (Auckland), Volume IV, Issue 964, 6 May 1930, Page 10

Stabilising Flax

N.Z. INDUSTRY THREATENED Appeal to Government UNLESS some assistance is forthcoming most of the flax mills throughout New Zealand will have to close down shortly.” This information was conveyed to the Hon. G. W. Forbes, acting-Leader of the Government, by a representativereputation of flaxmillers this morning. A request for a grant of £4,000 to establish a stability fund was made. A suggestion was? also made that the establishment of new industries for the manufacture of corn sack and other articles now imported into the Dominion would help eonsiderablv.

The deputation, which was intro duced by the Rt. Hon. J. G. Coates was also supported by Mr, A. M Samuel, M.P., Mr. W. J. Jordan, M.P. Mr. W. Lee Martin, M.P., and Mr. A W. Hall, M.P.

have obtained a reduction from our Power Board in order to help us out, and some of our men have come along and offered to take less wages as long as they could be kept in work. “Some of these men have worked for me for 13 years. They are good fellows, and I would sooner try any way out than see them compelled to come into Auckland and register as unemployed.” The speaker considered that such a grant would enable the millers to stabilise the price at £25 for fair-grade hemp. At any time that a price above that rate was received they would undertake to pay the difference into tlie fund. He said that they were not holding out a threat, but the simple fact of the matter was that if assistance was not forthcoming the mills would have to close down. Mr. E. T. Frost, secretary of the association, said that the men’s wages had been cut down as low as possible. The present wage, he said, was the lowest since the war. In reply to the Minister, he stated that it was expected that the position would improve in September. Mr. D. R. Ogilvy, of Foxton, an executive member of the New Zealand Flaxmillers’ Association, said lie recently had to put 50 men off. If all the mills closed, 500 men would be affected in the Manawatu district. FRESH OUTLETS Two ways in which the industry might be re-established were suggested by Mr. T. Walsh, of Paeroa. One was by improving the machinery, and the other was by seeking a fresh outlet for the product. He mentioned that the flaxmillers subsidised the Department of Scientific Research, and he suggested that the Department be asked to investigate if there was any way of cornsacks and other hessian goods, which were imported into the country, _being manufactured from New Zealand hemp, in the country. Messrs. Samuel, Jordan, Lee Martin and Hall all spoke strongly in favour of the request, not only for the cake of preventing further unemployment, but for the protection of an industry. The Minister stated that the deputation was a very representative one, and the views expressed were such that any Government would give them the fullest consideration. In the first place, unemployment was involved, and that in itself was sufficiently serious to concern all in the country. The request for a subsidy, however, was one that principally concerned the Minister of Finance. When prices were falling, a country’s finance was also affected.

Mr. Coates explained that the value ol' the exports of flax and tow last year teas £402,420. Lately the price of fair-grade hemp had receded from £25 a ton to £2l 10s (maximum quotation). Ii was exported principally to the United States, London and Canada. The maintenance of a regular supply of material was also a difficulty that faced the millers, said Mr. Coates, and hemp therefore did not always go into tile market regularly. On this occasion a substitute called sisal was used. To prevent this substitute working in, it was advisable to maintain as regular a supply of hemp as possible. At the present time the mills were unable to produce hemp of a suitable grade at the price offering, and unless the position was improved, many of the New Zealand mills would have to close down. In addition to the creating of further unemployment, an important industry was threatened. These, he considered, made the request one of the greatest importance, and he was quite sure the Minister would appreciate the seriousness of the position. It was in the winter months that the industry faced its most serious difficulties, said Mr. Coates, and the proposal was that the Government make a grant of £4,000 toward the establishment of a stabilisation fund, to enable tlie industry to keep going, and their bands employed ore*- that period. WILL LOSE THE TRADE. Mr. B. L. Broad, president of the Northern Flaxmillers’ Association, said the deputation included representatives of all the New Zealand mills, as the request they were making was essentially a national one. Apart altogether from the fact that closing down would create further unemployment, it was of the greatest importance that the mills should be kept open in order that the mills would be in a position to meet the demand when it next arose, said Mr. Broad. Closing down now would mean that the merchants would lose their big overseas connections, and it would practically mean the loss of an industry to the country. He referred to the fact that, in the past, Governments in New Zealand had assisted the iron industry, pigraising, and fruit and wheatgrowing industries, it would not be establishing a precedent if the request was granted. “The position in Auckland would be [hat 17 mills would have to close down, and that from 350 to 400 men, mostly married men with children, would be thrown out of work. In addition a large number of men concerned in the handling of the product would also be affected. “We have done all we could io reduce our costs,” said Mr. Broad. “I

The Department of Agriculture was keenly interested in the flax industry, said the Minister, and so was he. He would have much pleasure in taking the question up with the Minister of Finance, after which it would have to be considered by Cabinet, which was meeting in a few days’ time. The caso for the industry had been very fairly presented, and he assured the deputation that it would receive full and serious consideration.