LINEN THREAD

Press, Volume LXXXI, Issue 24740, 4 December 1945, Page 4

LINEN THREAD

MANUFACTURE IN SOUTH ISLAND BIG BRITISH COMPANY'S PLANS t , An o °P tion °n a site in the South island for a factory which will manufacture linen thread and twine, has been secured ,by Mr J. D. Barbour, a r Linen Thread Company, of Glasgow, who is now in Cnristchurch. This company, which has a capital of £3,850,000, is the larsest manufacturer of linen threads and twines in the world, and has been granted a licence'by the Government to manufacture these products from New Zealand linen flax. The company proposes to install the most modern ine r v and plant for the purpose. Mr Barbour, who flew out ‘ from England last month, said he was visiting New Zealand to settle the quesof supply, manufacture, and distribution, so as to be able to convey to his co-directors a report which would enable .them to take the necessary important decisions. "In a recent speech in the\House of Representatives the Minister* of Industries and Commerce (the Hon. D G. Sullivan) expressed the view that the contemplated New Zealand textile factories would be able to compete with overseas companies,” said Mr Barbour. “This, of course, is quite' necessary if the factories are to operate successfully in the domestic market which is somewhat limited. Naturally, the enterprise contemplated by my company necessitates the expenditure of a large sum of money on the most modern machinery and plant “My co-directors, therefore, must be assured that decisions taken regarding proximity of the source of raw supply climatic conditions, transport facilities and availability of labour are such as will enable them to give their valued customers, whom they have served from the_ earliest days of established industry in this Dominion, the quality of article which they have supplied to them in the past ,at prices which will compare favourably with what they, have been accustomed to pay. In this connexion I have already inspected a number of districts, and I have secured an option on a site which gives promise of fulfllling all the necessary conditions. . \ ■ "It is my company’s intention, in falling into line with the economic policy of the New Zealand Government. not to let down the company’s own customers,” said Mr Barbour. “My company is determined, therefore, to supply to its customers articles of such a quality as will not affect detrimentally the local industries dependent noon them.”

quent increases to £435.000 in 1943 ’ £497,000 in 1944, and £543,000 in 1945! There had been Opposition statements ■that because of taxation companies had been unable to put money into reserve. There was no evidence to support such There was no question' that companies were paying dividends., as good as those paid eight >ca_rs ago. while they had increased their reserves in many cases. Mr Nash said the member for Waikato had expressed something akin to arger at the Government's action in using sterling funds to reduce our overseas debt yef Opposition members also complained that we had too much sterling exchange, and they also knew we could not buy more goods than we were buying. Mr Poison: We are not satisfied that you could not import more poods Answering a question by Mr Mackley as to what taxation was to remain Mr Nash pointed out that Mr W. Sullivan had said that if provision conr°rnmi» future taxation were not in tbis_ bill it would be in a later one. “It is not In this bill, so we must wait for a later one,” said Mr Nash. The bill was put through the committee stages and passed.