FLAX INDUSTRY

Dominion, Volume 23, Issue 6, 2 October 1929, Page 13

FLAX INDUSTRY

EFFECT OF SUPER LAND TAX “MIGHT HAVE TO GO OUT” An assurance that its representations would be carefully inquired into given to a deputation from the New Zealand Faxmillers’ Federation which approached the Prime Minister (Right Hon. Sir Joseph Ward) yesterday with regard to the super land tax proposals. The deputation was introduced by. Mr. J. Linklater (Manawatu), who explained that the flaxmilling industry for its success depended upon the cultivation of large areas of land which would be affected by the super tax to such an extent that the industry might have to go out. Mr. Linklater said that last year the sum of £45,000 was paid in wages to employees in the flax industry, and should the industry be seriously affected many men would be thrown on the labour market.

The chief spokesman was Mr. A. L. Seifert, who reiterated Mr. Linklater s remarks, and said that the industry was not at all profitable at present, as prices were low, and New Zealand hemp was in competition with that produced by coloured labour in the Philippines. Yucatan, Java, and West Africa. . New Zealand hemp had no preference in any market in the world, and cordage manufacturers would take competitive goods if the New Zealand quality and price did not suit them. He also stressed the point that a large number of flax-planting companies had been floated recently. The public had subscribed for shares for these companies in all parts of New Zealand, and did so in good faith, believing that no excessive taxation load would be placed on the industry. Each flax-planting company had bought a considerable area of land, as it was necessary to do so from the point of view of economy. It took a flax plantation four years to mature, and if the super tax were applied the cost of planting would be considerably increased. The industry deserved to flourish, and it was hoped that nothing would be done to prevent it prospering. The Prime Minister said that although he was not familiar with the special conditions of the industry the deputation’s request would receive very careful consideration.