TOBACCO INDUSTRY

Evening Post, Volume CXX, Issue 125, 22 November 1935, Page 12

TOBACCO INDUSTRY

REGULATIONS REVISED

PROPOSED NEW CONTROL

Regulations relating to the manufacture of tobacco are consolidated and brought up to date in a schedule published in this week's Gazette. No vital changes have been made, the amendments being almost entirely of a machinery nature.

It will probably be early in the New Year before the board which is to be appointed under the Tobacco Growing Industry Act of last session is announced. In view of the fact that growers have their crops in and contracts made, there is no urgency about the matter, and the new conditions will not become fully operative until next season. The object of the new measure, which was asked for by all sections of the industry, is to exerc'se some control with the idea of bringing production into closer relationship with demand and consumption.

Up to the present uncontrolled production has given rise to many difficulties that have been handicapping the industry. Prior to the passing of the Act the custom for growers was to grow on contract at a minimum price, which was later to be a basis for negotiation between producer and manufacturer. A number of the smaller manufacturers, however, did not enter into contracts, and bought their requirements at much lower prices by reason of there being surplus production, a "Post" reporter was informed today. This has been one of the main problems affecting both growers and manufacturers, because those who honoured their contracts have paid, say. Is Gd a lb, while others have been able to obtain supplies at Gd a lb. The new legislation is a safeguard against this. It provides for the setting up of a board consisting of four growers' representatives and four manufacturers' representatives, together with a Government representative, who will act as chairman. Those growers who grow tobacco for sale will require to be licensed, but this does not apply to individuals who grow leaf simply for their own use. Warrants will have to be taken out by commercial growers and manufacturers, and in this way it is hoped to encourage the making of contracts between growers and manufacturers. This should do away wilh indiscriminate production and consequent surpluses at ,111 c end of the season, The new board will also be empowered to try and promote the sale of New Zealandgrown tobacco both here and overseas.