PLAN FOR FLAX INDUSTRY

Press, Volume LXXIII, Issue 22167, 10 August 1937, Page 5

PLAN FOR FLAX INDUSTRY

Approval Given ByMillers SELF-GOVERNMENT AS BASIS “I have pleasure in announcing that the plan prepared by the Bureaq of Industry for the rehabilitation of the New Zealand flax industry has received the decided approval of the industry,” said the Minister for Industries and Commerce, the Hon. D. G. Sullivan, in a statement issued yesterday. “Steps will immediately be taken to bring the plan into operation and flaxmillers and growers are generally pressing that early action should be taken in this respect and are enthusiastic of the prospect of at last securing co-ordination and organisation within the industry.” In March of this year, the Minister said, he gave public notice of the material provisions of a provisional plan of reorganisation which had been prepared by the Bureau of Industry under the terms of the Industrial Efficiency Act. and a general meeting was then called of all persons engaged in the industry to discuss the plan. Agreement was not reached at that meeting cn certain essential features of the proposed plan, and committees, representative of all sections of the industry, were elected to discuss those matters with the Bureau of Industry with a view to evolving a plan which would meet with general approval for adoption under the Industrial Efficiency Act. Marketing and Prices “The principal matters upon which unanimity was not reached in the provisional plan,” said the Minister, "were the proposed methods of marketing, of price fixation, and the setting up of a Government commercial mill. After several conferences with the special committees, amendments, were made to the provisional plan which met with the general approval of the representatives of the inte'rests directly concerned and of the Government, The principal feature of the plan is. the setting up of an Industrial Committee under the Industrial ‘ Efficiency Act, 1936, such committee to be given by regulations, the necessary powers to reorganise and control the industry,in accordance with the other features of the plan of rehabilitation. “The main amendment to the provisional plan consists of a continuance of Government assistance to the industry by means of a subsidy bn fibre exported in lieu of the fixed price proppsed in the first instance. The establishment of an experimental commercial mill will be referred for the consideration of the Industrial Committee and, if established, will be operated under the supervision of the Industrial Committee. 'The marketing of fibre will be under the supervision of the ‘ Industrial f Committee, which shall be responsible for the efficient organisation of marketing in the interests of i the industry, including the provision of standards. This latter provision will. give freedom of action to the committee to select the most efficient marketing channels and methods. • • Referred to Growers “After approval to the final plan -was given by the special committees of millers and growers, the Bureau of Industry forwarded copies of the material provisions of thq final plan to all millers and growers, together With a voting form, and explanatory memorandum. The bureau also arranged with the representatives of the industry for the holding of meetings in Auckland, Foxton, Wellington, and Invercargill, in order that members of the bureau might explain and discuss the plan with the -industry. These meetings were most successful. The voting papers have now been returned,” said the Minister, “and I am gratified - to announce that the industry has definitely approved of the plan. The act requires that regulations bringing a plan into operation must be supported by a majority of persons engaged in the industry as principals. A number of voting papers were 'Naturally not returned, but even then 75 per cent, of the principals engaged in the industry voted in favour of the plan. “I am particularly pleased that the provisions of the Industrial Efficiency Act providing for the issue, in the- first instance, of a provisional plan, and for discussion and co-operation with any. industry concerned in the preparation and adoption of an industrial plan, have.resulted in a comprehensive plan of reorganisation being evolved which meets' with the approval of both the Government and the substantial majority of flaxmillers and growers. Work of 1 “The plan virtually gives selfgovernment to the industry through the medium of the Industrial Committee, which will be appointed as representative of the industry to carry out the provisions of the plan. The special committees of millers and growers have made recommendations on the constitution of the Industrial Committee to be set up. and .at present I am considering the nominations made to me for the personnel of this committee. The committee will consist of a certain number of representatives of flaxmillers and growers, merchants, manufacturers of flax products, workers and the Government. The committee will give attention to problems of research, the organisation of marketing, the establishment of an experimental commercial mill, and the fostering of the industry in every way ,as elaborated in the plan itself. I am confident that, as a result of the action which has now been taken, and with the co-operation of the industry generally, which has been indicated in the voting, the reorganisation and rehabilitation of the industry will be secured which, as has been stated by the representatives, of the industry, is vitally and urgently,; necessary if the New Zealand flax* industry is to survive and provide ""that great measure of employment which it .used to do.”