Depression in Flax

Sun (Auckland), Volume IV, Issue 1048, 12 August 1930, Page 8

Depression in Flax

INDUSTRY NEEDS ASSISTANCE THE flax-growers of New Zealand are confronted with the serious problem of reviving a stagnant industry io i' former prosperity. Trade depression has affected flax as severely as any other New Zealand export. The early and more romantic days of the flax swamps elevated the industry to the position of one of the most colourful in the Dominion. Today, the flax industry is in the welter of the prosaic productions of modern times.

Old hands of flax-enriched swamps can tell romantic stories of the camps of the “flaxies,” to use the colloquial description of the men employed in this industry.

One remembers the story of Carl, a Dane in a Southern camp, who slashed a foot deeply with his flax-knife aed, helpless, was trapped for almost a day and a night in the heart of a j swamp. He was found by his camp fellows in a high fever, but his first conscious question was for a cigarette. There are many tales of brawls and auarrels in the hard life of the camps, rivalling the best stories of the gumfields or the gold claims. Today there is little romance in flax. Prosperity has ebbed from the 1 industry. The value of New Zeahland's most useful plant was appreci--1 ated by the first settlers when they | observed the multitude of uses given j by the Maoris to flax. Commerce j descended upon flax within a short space of years following the arrival j of Europeans in New Zealand. ! Yet, only the other day, a deputation representing the employers and the employees of the flax milling inj dustry asked the Minister of Industries and Commerce, the Hon. P. A de la Perrelle, for a subsidy on wages to enable the mills to continue to j operate. The deputation was introduced by Mr. J. Linkiater, who, as I member of Parliament (for Manawatu, i has an intensive knowledge of the industry. Mr. Linklater explained how the depression on the markets of the world had affected the flax industry. Flax, he mentioned, was the first product exported from New Zealand. If j the industry failed. 1,500 workers I would be unemployed. [ The hemp exports last year wera valued at £240.000. The greatest exi port since 1900 has been £1,400,000 in ! 1018, and the values in 1917 and 1910 were, respectively, £1,230,000 and £1.070,000. Since then the declines i have been rapid, with a period of recovery after 1922, but last year's export was the lowest in value since 1909. While these declines in value have taken place, the areas of land occupied by flax have increased. In 1920 the total flax area throughout the Dominion was 49,867 acres, which declined to 39,456 acres in 1923. Ily 1927 the area had grown to 69,420 acres and, in 1929, it was 62,700 acres. In 1929 more than 70 per cent, of the area in flax was in the land districts of Auckland, with 17,372 acres, Wellington. 14,907 acres, and Westland,

13,366 acres. At the census of factory production in 1927-28, 70 flax mills were shown to be in operation, but it is significant that the number of employees has increased since them In recent years, the companies have been compelled, in their efforts to regulate production for the markets of the world, to restrict the areas to be cut.

In the past, the flax industry has been of great value to New Zealand, and it is now the contention of the producers that they are entitled to be assisted in maintaining the industry during a time of severe depression. In the past 20 years, the value of hemp exported from New Zealand has been more than £12,000,(500. Apart from the fall in prices, which has made the industry scarcely profitable, the prospects are satisfactory. There is sufficient raw material in New Zealand to continue production at a rate similar to that of last season.

One important statement made to Mr. De la Perrelle was that the industry is paying a greater average proportion in wages than any other industry. Unless assistance is given, many millers will be forced into liquidation, and a large export sum will be lost to the Dominion.

Unemployment among flax employees is already apparent in the Manawatu district, where the huge Makerua Swamp occupies an important place as a field for the industry. In the vicinity of Foxton, there are about 200 men out of employment, and there is unemployment at Shannon,'the centre of the Horowhenua fields. Mr. De la Perrelle intends to place the representations of the employers and the employees before Cabinet. The industry wants a sliding subsidy on wages, sufficient when added to the present market price to make the returns to the millers equal to £25 a ton, f.o.b. At present, the average price a ton is stated to be little more than £2l. A committee, consisting of an officer of the Industries and Commerce Department, as chairman, and representatives of the hemp merchants and the flax millers, is suggested to determine each month the subsidy to be paid on the prices ruling. . Mr. De la Perrelle considers the amount of assistance likely to be given will be a question of policy. There will have to be consideration by Cabinet of the amount of money available to assist the industry in the manner suggested. KANGI-O-TU.