AID FOR TOBACCO INDUSTRY

Press, Volume LXXIV, Issue 22371, 7 April 1938, Page 3

AID FOR TOBACCO INDUSTRY

GREATER PROTECTION SOUGHT -

DEPUTATIONS MEET BOARD Craxss associatiok telegram.) WELLINGTON. April 5. After a meeting of the Tobacco Board held in Nelson, the chairman of the board (Mr L. J. Schmitt) said to-day that at the meeting several matters of vital importance to the industry were discussed, including the prices to be paid by the manufacturers to the growers for the 1938 crop and the request for additional protection to manufacturers against imported manufactured tobacco and cigarettes. During the meeting two deputations waited on the board and made representations on these and other matters. The Minister for Industries and Commerce (the Hon. D. G. Sullivan) was also present during the hearing of these deputations. In reply to the deputations. the Minister promised that if it were found possible after a full investigation to do anything to assist the industry the Government would give very careful consideration to the matter. As a preliminary, the Minister said he would arrange for the Department of Industries and Commerce to make a thorough examination of the position on the manufacturing side.

The board decided to make representations to the Government urging the heed for granting to the tobaccogrowing industry such measure of assistance as might be found necessary by investigation to bridge any gap that might exist between the costs of production of the leaf and the price the manufacturer could economically afford to pay for it. It was decided to recommend to the Government that regulations passed under the Board of Trade Act fixing a minimum price of Is 2d per lb for leaf be extended to March 31, 1939. A resolution was passed saying that, to assist growers this season, the Government be asked to reduce the levy of id per lb to Id per lb on leaf of the 1938 harvest for local manufacture It was also decided that the levy be waived in respect of leaf exported in 1937 under' the Government guarantee, but that this should be without prejudice to the board’s right to impose a levy on leaf exported subsequently. It was: agreed that wher'e growers had separate contracts for export and for local manufacture, one warrant to sell, covering the aggregate quantity and acreage contracted for,, would be issued by the board, instead of two, as previously proposed. It was decided that £IOO be granted to the New Zealand Tobacco Growers’ Federation for preliminary expenses in the formation of the federation, and that £l5O a year be granted for the running expenses of the federation. The following were appointed to represent the board on the Tobacco Research Committee: Messrs J. F. Balck, lan Hamilton, and C. C. Nash. The board decided to co-operate with the Department of Agriculture and with the manufacturers in securing a suitable exhibit of leaf for display at the Glasgow Exhibition, to be held from May to October this year.