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annual report of the Department it was intilnated that Messrs. Cadbury and Fry proposed to erect a factory in the Dominion for the manufacture of their products. It has now been announced that an amalgamation of R. Hudson and Co., Ltd., of Dunedin, with the English House has been effected. The parties in the amalgamation are to be congratulated on the step taken, indicative as it is of a world movement for the combination of producing - units in industry as opposed to uneconomic competition. Furniture and Cabinet Making. Official statistics, year ended 31st March : — 1927. 1928. 1929. Establishments (number) .. .. 3-37 343 331 Employees (number) .. .. 2,751 2,708 2,675 Wages paid .. .. .. £538,386 £522,923 £515,566 Value of output .. .. .. £1,413,054 £1,318,957 £1,342,948 Value added by manufacture .. £783,414 £752,261 £756,285 The value of output shows a slight recovery of £24,000, and value added by manufacture increased by £5,000, compared with the 1928 figures. The report on the current year shows that the present position will be maintained with a slight increase in production figures. Ham and Bacon Factories. Official statistics, year ended 31st March: — 1927. 1928. 1929. Establishments (number) .. .. 44 41 45 Employees (number) .. .. 401 394 374 Wages paid .. .. .. £93,378 £98,739 £90,539 Value of output .. .. .. £1,164,180 £1,041,910 £989,672 Value added by manufacture .. £240,289 £334,475 £298,049 Cost of materials used .. .. £923,891 £707,435 £691,623 The statistics for the year ended 31st March, 1929, for this industry depict an all-round decrease in practically all phases of the industry as compared with the previous year. There is, however, no occasion for alarm at this state of affairs, as the majority of factory-proprietors reported that business during the current year was steady. Bricks, Pipes, Tiles, and Pottery Making. Official statistics, year ended 31st March : — 1927. 1928. 1929. Establishments (number) .. .. 73 71 67 Employees (number) .. .. .. 1,316 1,300 1,233 Wages paid .. .. .. .. £303,561 £295,848 £278,965 Value of output .. .. .. £697,477 £680,220 £666,450 Value added by manufacture .. .. £666,096 £650,999 £640,916 Reports from the various centres of the Dominion point to a decrease in production for the current year. This is due to a decrease in building activity. In the Otago District, however, there is a demand for the better-class brick dwellings, and reports from that district are in consequence brighter than those from other districts. Flax-milling. Official statistics, year ended 31st March : — 1927. 1928. 1929. Establishments (number) .. .. 73 70 60 Employees (number) .. .. .. 1,193 1,020 879 Wages paid .. .. .. .. £233,897 £181,304 £145,348 Value of output .. .. .. £495,784 £402,421 £329,340 Value added by manufacture .. .. £369,465 £310,116 £259,856 Ro'pe and Twine Making. Official statistics, year ended 31st March : — 1927. 1928. 1929. Establishments (number) .... 7 7 8 Employees (number) .. .. .. 228 225 218 Wages paid .. .. .. .. £45,151 £45,680 £41,834 Value of output .. .. .. £227,562 £214,344 £187,730 Value added by manufacture .. .. £100,198 £98,660 £81,519 Figures for the flax-milling industry continue to show a substantial decline when compared with those of 1928. The industry has drifted to a very unsatisfactory position, owing to a fall in prices ruling on the London market. The export figures for fibre and tow also show a succession of decreases as shown by the undermentioned figures :— Year. Tons. £ 1926 .. .. •• •• 20,798 589,603 1927 .. .. •• 19,600 535,526 1928 .. ■■ ■■ •• 15,683 394,450 1929 .. .. •• •• 14,720 379,942

5—H. 44.