TOBACCO GROWING

Evening Post, Volume CXXII, Issue 16, 18 July 1936, Page 13

TOBACCO GROWING

A FIXED PRICE

BOARD'S RECOMMENDATION

Reference to the newly-formed Tobacco Board, and' its importance to the industry, were made by the Minister of Industries and Commerce (the Hon. D. G. Sullivan) at the opening of the new. bond store of Messrs. W. D. and H. O. Wills yesterday afternoon.

(Mr. Sullivan said that the establishment of the Tobacco Board, it was confidently' anticipated* would be of considerable value to the tobacco-growing industry and to New Zealand generally.

The Tobacco-growing Industry Act, 1935, was passed as the result of repeated requests by the industry ipr some legislative authority under which the industry could be controlled, and growing, production, manufacture, sales, and exports conducted on proper businesslike lines instead of under haphazard methods which had existed in many instances in the past. PRODUCTION OUTRUNS DEMAND. ' The industry had been in a more or less chaotic condition by reason of the fact that the production of leaf had borne no relation under existing conditions to demand or consumption. The fact that there had been overproduction in the industry had been well established. Production had proceeded more or less; haphazardly without any regard to market requirements, and in spite of the greatly-increased use of New Zealand-grown leaf by New Zealand tobacco manufacturers, production had outrun demand. :•• ; Growers had not known from time to time just what, quantity of leaf it has been necessary to produce, or how much within reasonable limits they were.likely to get for.it when it was produced. The surplus leaf produced over and above contracts and the resulting stocks of leaf on hand had represented a danger to the industry, and had prejudiced the position from the growers! point of view. :The primary object of the legislation -was to stabilise, the industry and to encourage and -gradually, develop the production and consumption of New Zealand-grown tobacco, so far as it was a reasonable economic proposition. It would be a function of the board not only to try to increase the use of New Zealand-grown tobacco within the Dominion itself, but also, in conjunction with theiDepartment of Industries and Commerce, to/endeavour to open up and develop markets for it overseas. SHIPMENT FOR OVERSEAS. .With.this end in view a trial shipment of tobacco was forwarded to the United Kingdom last year, and very favourable cdmmente were made as to the quality of the leaf supplied. This year it was proposed to send a larger .quantity,. and, ; as a result, much -valuable information would be obtained as to the qualify of leaf which suited the requirements of the English manufacturers. An endeavour would be made to have this quality, of tobacco grown in New Zealand-tor the export market. The activities of the Tobacco Board were'being financed by means of the fees collected "for licences to grow tobacco and warrants to purchase and sell i raw tobacco, and also by a levy of Jd per pound on all tobacco grown in the Dominion. It was proposed to expend this money to bring about as great an' improvement' in the industry as is possible,: and to this end it.was proposed to conduct research work into the problems of the cultivation'of the; tobacco leaf and its.manufacture into cigarettes • and, smoking ' tobacco. ■ It. was interesting to observe the • trend of the statistics for importations .of tobacco (manufactured and unmanufactured)' in each of the past three calendar years, .which were as fol-lows:—-1933, 2,873,2561b; 1934, 2,755.5121b" 1935, 2,646,7461b. • *

It would be noticed that importations were steadily decreasing. With full development of the industry in New Zealand there appeared to be no reason why New, Zealand raw tobacco should not further replace the imported tobacco: ,' ; --- ~ .-. ■~'. :•,.: -• -~- ■■- .

The importance of the tobacco-grow-ing industry as a,field for the absorption, of those members,of the community who unfortunately, had been displaced .from; their ordinary, employment would be.obvious. "As I have stated on previous occasions, I consider that the solution of the present unfortunate unemployment problem depends almost entirely upon-the development of present local industries and the development of new industries, and it is. the Government's intention to assist'in every Way possible our. local manufacturers to absorb more employees," said Mr. Sullivan.

A recommendation had been made to the Government by the Tobacco Board for the fixation of a minimum-price of tobacco of Is per pound; and this was now under consideration. ■• ■■•'■

"There is .one way ,in which the general smoker can assist to create employment—for-' his fellow-New Zealanders, and, as a consequence, improve the prosperity of everyone in this country, including himself, and that is .by smoking locally-produced, cigarettes and. tobacco," said. Mr.' Sullivan. "If the general smoker will follow this policy he will be lending material assistance to the Government and to the Tobacco Board in the solution of its problems, and I confidently anticipate the support of every loyal New Zealander in this matter."