FLAX WOOLSACKS

Press, Volume LXXVI, Issue 23191, 30 November 1940, Page 9

FLAX WOOLSACKS

tu I-ut edituh vr the hhkss. Sir,—Why is it th:* the Minister for Industries and Commerce repeatedly makes statements to the effect that the flax woolpack industry is a good thing for the country, when he must know that it will never be a success without huge Government subsidies. Every flax pack sold to date has been sold by merchants at a loss, which has been made up by the profit on the imported packs. Every year has seen an increase in the price of flax packs, in spite of a continual drop in the price of jute packs. This year merchants pay 6s ex ship for flax packs and sell them at 6s ex store. Jute packs can be landed at 3s 3d, although this season’s requirements, purchased nearly a year ago, cost on an average about 4s 6d. Most of next season’s importations, however, will be purchased at 3s 3d landed, or better, so no doubt the Government will reduce the price qf the locally-made packs to, say, ss. ai.cl make a big song about the saving to farmers, through the Government taking over the flax industry, when, if it had not interfered, the farmer would get his packs at about 4s. It makes cne smile when one reads of PJr Sullivan visualising the export of flax woolpacks to Australia. What a vision! Can any sane person imagine Australia purchasing packs from New Zealand at a landed cost there of 5s to 6s when they can get jute packs at 3s 3d, and possibly less. And if the Foxton company can produce packs at less than the price mentioned, it must be making substantial profits now, although this has never been evident from Its balance-sheets. No doubt with Increased production, rising costs, higher wages, etc,, it will be soon able to produce packs at 75 per cent, below the present cost, and so enable them to be landed in Australia at a profit for "ess than 3s 3d. It is quite apparent that it is still possible to fool some of the people all of the time, but Mr Sullivan is only fooling himself when he visualises the export of flax woolpacks to Australia. —Yours, etc., NOT FOOLED. Ashburton, November 29, 1940.