42

L—9.

H. GEEIG.

Again, the particular property I refer to has for the last two years contributed in wages over £5 per acre annually. I" think I am safe in suggesting that that amount per acre is equal to seven or eight times xvhat xvould be paid out by land used for mixed farming. At the present time it is quite impossible to produce fibre at a price which allows any profit to the miller or grower of the flax—in fact, the present rates shoxv a loss of at least £5 per ton. Some twelve months ago a union of the employees in the flax-milling industry xvas formed, not because there xvas any dispute betxveen the millers and their employees, but I think largely as a result of organizers and agitators going amongst the men and persuading them that they did have some grievances. In any case a union was formed, and an award of the Arbitration Court obtained. With due respect to the Arbitration Court (I think they gave the matter their very fullest consideration), xve find that in some cases the rates xx-ere fixed very high, and the position we wish to point out to you is this : that there are thousands of acres of flax in this Dominion which are ready for harvesting, and there are also many men out of xx'ork and clamouring for employment. Under the award of the Arbitration Court the men are practically debarred from getting employment at a rate they xvould gladly accept, and the employer is likexvise debarred from employing them, xxhile the revenue of the country at the same time is suffering very largely. We submit that this goes to show the inexpediency of fixing an award governing the cost in an industry where the price of the product is controlled bj' outside factors. Another point I xvould like to make is that under existing conditions our industry must be almost wiped out for the time being. During the last fexv years we have been gaining a good foothold on the xvorld's markets. Whereas seven years ago our fibre xvas xvorth from £5 to £7 less than manila, it is now w r orth £5 more; but if the industry is stopped noxv it is likely to suffer very considerably. We think, after considering all the circumstances, that in the meantime, while the conditions are so bad, might be relieved from the effect of the Arbitration Court axvard. And in asking this xx r e consider xve are doing so not only in the interests of the millers themselves, but for the benefit of the workers. As the Arbitration Court's axvard now stands we cannot ask the men to work for us. Men xvorking in the flax-milling industry are practically unskilled xvorkers, and there are other channels in which they can accept employment xvhen the conditions of the flax-milling industry are not so good as in other industries. We simply ask that xve shall be alloxved to employ the workers engaged in the industry, and so prevent them being throxvn absolutely out of employment. I think that is all I have to say. 4. You think, then, that the axvard of the Court has really paralysed the industry? —No; it has been paralysed by the action of outside markets. We claim that the flax industry is different from that of others in the country, inasmuch as large areas of country lands are affected by it, and practically no part of our produce is consumed in the colony. We have no means of regulating the selling-value of the article xve are producing. 5. What you really ask is that poxver should be given to suspend an nxvard xxhen a certain set of conditions can be proved to exist?— Yes, that is so. 6. Mr. Poole.] You cannot see your xvay out of the difficulty without the suspension of the Court's axvard?—l do not know that the suspension of the axvard xvould have the effect of putting the industry on a payable basis —in fact, I am sure it xvould not; but wdiat xve ask is that men xxho are walking about the country out of xvork should have the right to take employment, and xve should have a right to give it. 7. Do you think the maintenance of the product on a foreign market makes it necessary to keep the industry going?—l think it is essential. 8. And if it is not maintained it xvill affect the Dominion generally?—lt xvill affect those who have vested interests in the industry, it will affect the xvorkers, and it xvill largely affect the revenue of the Dominion. The revenue xvould probably be affected to the extent of anything from half a million to a million a year. 9. Is there a,v.y likelihood of a near recovery in the price of flax?—We are hoping that the loxv price of fibres generally will have its effect on the production of manila, which fibre actually controls the price of Nexv Zealand hemp. 10. Mr. Bollard.] Do I understand that in consequence of the low price of flax in foreign markets, and in order that the workers may get a chance to be employed, you ask that the award of the Arbitration Court should be reviexved xvith a viexv of fixing the wages at a lower rate? —I do not think it is necessary that we should work under an award. I think we ought to be removed from the operation of the Act. 11. The Chairman.] You want to be exempted altogether?— Yes. 12. Mr. Bollard.] What do the workers say to that?— The workers at the present time are out of employment, and are likely to remain so. I think xxhat xve ask is as much in their interests as in the interests of the millers. 13. Mr. Arnold.] What is the term of your award?— Two years, and it has been running since the commencement of July last year. 14. The Chairman.] It is about half-way through?— Yes. 15. Mr. Arnold.] Of course you ask that this legislative power given to the Court should be made general in its application?— Certainly, as concerning industries in which the price of the product cannot be governed by the cost of production. 16. So that the Court shall have power gix'en to it to reviexv its awards for the purpose of altering the rates or exempting certain industries? —I contend that the artificial fixing of the cost of production xvhere the selling-price of the product cannot be regulated is xvrong in principle. 17. Would you have machinery set up so that the Court would be compelled to consider or reviexv an award on the application of either party?—l would confine myself to the suggestion that the flax industry should be removed from the operation of the Act altogether.