H.— 44

The number of tung-oil trees that have been grown to maturity in the Auckland District are too few on which to base a confident opinion of the future prospects of the industry. The experimental plantings of these trees in numerous localities already made by the Department of Agriculture and the State Forest Service should serve as an effective guide as to the localities, if any, which are commercially suitable for the purpose of the proposed industry. Angora-rabbit Wool and Chinchilla-fur Industry. Some two years ago the prospects of this industry looked so promising that large numbers of these rabbits were imported from the leading English breeders, and hundreds of persons, mostly of small means, purchased rabbits at very high prices. Unfortunately the importation of these rabbits was coincident with the development of the world-wide financial crisis attendant with the collapse in prices of most commodities. The fur industry was one of the first to experience a disastrous fall in prices, and chinchilla furs have in consequence been saleable only at prices around those ruling for the common wild rabbits. The buying of Angora-rabbit wool by British firms ceased for nearly twelve months, leaving our rabbit-breeders without a market for their wool or for their rapidly increasing stock. Towards the end of 1929 the Commonwealth of Australia removed the embargo on the entry of industrial rabbits, and this Department promptly advised breeders that this market was available to them, and upwards of two thousand rabbits were exported to Australia during 1930. This afforded breeders some badly needed financial relief. During 1930 English firms renewed the buying of Angora-rabbit wool, and breeders are now availing themselves of this market. The best quotations are as follows : First-grade wool, 30s. per pound ; second-grade wool, 255. per pound ; third-grade wool, 9s. to 15s. per pound ; fourth-grade wool, ss. to Bs. per pound. Growers, however, are in the hands of the buyers in England, as the wool is graded by the buyer, and payment made entirely on the latter's gradings. There appears to be need of organization amongst the growers to receive and grade their product at a central depot in the Dominion, and to arrange payment on the basis of the grades established here. The utilization of Angora-rabbit wool in combination with high-count merino wool is receiving attention at Bradford, and it is stated that 13 per cent, of Angora wool has been incorporated in merino wool for the spinning of yarns, and, moreover, that fabrics woven from these yarns have a very distinctive character and are likely to have a special " fashion " appeal. A demand for dress goods and hosiery containing considerable percentages of Angora-rabbit wool would greatly benefit producers of this wool in the Dominion. The right foundation stock is everywhere available, and production could in a very short time meet very heavy demands. Deer-skins. Due to the Government's decision to keep the deer herds in New Zealand definitely under control, fairly substantial quantities of skins have become available for sale by the Internal Affairs Department and the State Forest Service. In co-operation with these Departments the Department of Industries and Commerce has been endeavouring, through the New Zealand Trade Commissioners in Canada, the United States, and Australia, to explore the requirements of these overseas markets for this class of hide. Sample skins have been forwarded to the New Zealand Trade Commissioner in Australia for distribution among tanneries for experimental purposes. Inquiries that have resulted indicate the possibility of an increased export trade to Australia. An exporter in the South Island recently placed a parcel with one of the leading tanneries in Melbourne. The District Officers of the Department in New Zealand have also been successful in arousing interest in this line, and definite inquiries have resulted. It may not be generally known that excellent-quality gloves, upper leathers for men's and women's shoes, leather coats, &c., are being made from deer-skins by New Zealand factories. Cement. The question of prices for cement charged by the New Zealand manufacturers has been the subject of discussion by local bodies, farmers' unions, and others. During the debate in the House of Representatives on the Customs Acts Amendment Act, 1930, the Right Hon. the Prime Minister approved of an investigation being carried out by this Department. The investigation is the subject of a special report which will be submitted to the Hon. the Minister of Industries and Commerce at an early date. Price op Motor-spirit. Acting on instructions received from the Right Hon. the Prime Minister, the Department has been inquiring into the cost of landing motor-spirit in New Zealand and the cost of distribution to users. Preliminary inquiries have been made from the major oil companies and also from a number of other importers of motor-spirit. It would appear from the information received that the cost involved in distribution, owing to the extensive service provided, is exceptionally high, and the spread between the landed cost and the ultimate price paid by the user appears to be one of the most unsatisfactory features of the trade. Further information is being obtained, and it is proposed to submit a report during the present session of Parliament,

4—H. 44.

19