H.—44.

The employment position of the industry for 1934 is the most favourable for the past four years. The value added by manufacture, which is a reliable indication of the net trading result, declined by £50,161, due to the cost of materials used, which increased by £103,435. An increase in turnover is reported by Auckland factories, but managers of these factories point out that the increased price of pigs combined with keen competition will result in small margins of profit being obtained during the current year. Bricks, Pipes, Tiles, and Pottery Making. Official statistics, year ended 31st March — 1932. 1933. 1934. Establishments (number) .... 50 44 43 Employees (number) .. .. .. 563 405 467 Wages paid.. * £102,694 £74,167 £82,664 Value of output .. .. .. £253,356 £180,785 £212,263 Value added by manufacture .. .. £233,969 £168,548 £197,984 The improvement in the building trade has created a most optimistic tone. While the 1934 figures show an improvement under each heading compared with 1933, the figures are considerably under the figures for 1931. For comparison purposes the relative figures are set out hereunder : — 1931. 1934. Employees .. .. .. .. . • 946 467 Wages paid £213,895 £82,664 Value of output .. .. .. .. £564,489 £212,263 "Added "value £537,775 £197,984 Flax-milling. Official statistics, year ended 31st March — 1932. 1933. 1934. Establishments (number) .. .. 17 20 23 Employees (number) .. .. . . 135 213 258 Wages paid .. .. .. .. £13,198 £27,349 £35,456 Value of output .. .. .. £33,878 £54,658 £74,291 Value added by manufacture .. .. £24,399 £38,591 £58,383 jßope and Twine Making. Official statistics, year ended 31st March — 1932. 1933. 1934, Establishments (number) .... 6 5 6 Employees (number) . . . . .. 205 214 228 Wages paid .. .. .. .. £35,304 £34,684 £34,828 Value of output £121,732 £144,502 £130,903 Value added by manufacture .. .. £64,831 £72,654 £69,362 The flax industry continues to show a slight progressive improvement during the past four years. The figures for 1934 show a relative substantial improvement over the 1933 period, but when compared with statistics of a few years earlier the position is far from satisfactory. Exports of hemp and tow in each of the past eight calendar years were as follows : — Calendar Year. Tons. £ 1927 .. .. .. .. .. 19,600 535,526 1928 .. .. .. .. .. 15,683 394,450 1929 .. .. .. .. .. 14,720 379,942 1930 .. .. .. .. .. 9,4-93 221,923 1931 .. .. .. .. •• 2,398 38,407 1932 .. .. .. .. .. 3,850 47,312 1933 .. .. .. .. 4,402 47,632 1934 .. .. .. .. ..4,173 52,018 The reports of rope and twine manufacturers for the current year are distinctly favourable, but competition from imported manilla binder twine is having a disturbing effect on the market. The manufacture of wool-packs from Phormium tenax is now passing the experimental stages, and, while the packs of 1934 did not receive favourable reception from the wool interests at Bradford, it appears quite certain that no objection will be taken to the general use of packs of the quality of the sample packs of 1935 recently displayed to the British Wool Buyers' Association. Further improvements are now being made to the pack which will remove all possible doubt of their suitability as woolcontainers. Clothing. Official statistics, year ended 31st March— 1932. 1933. 1934. Establishments (number) . . 244 254 249 Employees (number) .. .. 7,155 7,616 7,877 Wages paid £784,668 £807,206 £831,871 Value of output .. .. £2,153,467 £2,400,599 £2,631,182 Value added by manufacture .. £1,109,276 £1,188,153 £1,264,304 Imports, calendar years — Apparel and ready-made clothing (including fur clothing) .. £926,152 £941,466 £1,030,584 Reports from Auckland manufacturers indicate better conditions than those of 1934. Most factories report a fair amount of overtime being worked. The import value of apparel and ready-made clothing (imported in 1934) shows an increase of £89,118, while the increase in value from local mills, as shown above, was £230,583.

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