KAURI GUM PRICES

Evening Post, Volume CXVIII, Issue 91, 15 October 1934, Page 11

KAURI GUM PRICES

STABILISATION SCHEME

Replies to a questionnaire submitted by tho Kauri Gum Association concerning the plan for price stabilisation in the industry, recently announced by tho Hon. J. A. Young, Acting Minister of Employment, wore received from tho Unemployment Board at a meeting of tho association iv Auckland on Friday, when tho point was made that tho Unemployment Board did not desire to interfere with the existing customs for buying and selling kauri gum, states the "New Zealand Herald."

The stabilisation plan involves the establishment of a store at Auckland by the board, and the payment for manually dug and treated gum chips at a basic rate of, at present, £18 a ton.

"Actually, the board does not wish to purchase any gum as long us the gumdiggcr can be assured of a reasonable price- in his district," stated the letter, "the price being based on that which the board has fixed for delivery in Auckland store. Therefore, it is not considered necessary to appoint any control committee."

In reply to a query as to what the board intended to do with, chips purchased at £18 a ton, it was advised that any action taken would depend entirely on the quality of chips purchased. In all probability, the refining plant at Henderson would be able to absorb any purchases made, but should there be an excess quantity for sale at any time, it was unlikely the board would dispose of that without consulting the association. There was no intention of fixing prices or purchasing other grades of gum. A proposal that tho board should protect the established brokers for commission in respect of gum purchased by the board, which would thereby be diverted from tho brokers' hands, could not be entertained, as it did not appear likely that chips would bo sold to the board except under exceptional circumstances. "Tho board will bo pleased to keep tho association informed of the position as it develops," the letter concluded, "and trusts to receive your co-opera-tion." Tho letter was received, tho association deciding to await further dovolopments before making any definite- policy announcement.

The president of the association, Mr. K. H. Mellvcen, said later that stocks of gum in store at Auckland wore tho lowest for years, mainly due to a decrease in production. He was of tho opinion that tho stabilisation plan had not as yet had a groat effect on the position. Altogether 2(58 tons of kauri gum were exported from Auckland last month, tho total value being £8062, an average of about £30 a ton. This compared with 349 tons, valued at £8313 in August, and 341 tons, valued at £7229, in July.