FLAX INDUSTRY

Evening Post, Volume CXXIII, Issue 55, 6 March 1937, Page 9

FLAX INDUSTRY

LONDON TRADE VIEW

GOVERNMENT POLICY

GAMBLERS' THROW ?

Wigglesworth and Co., fibre merchants, London (a member of which firm was recently in New Zealand) describes the New Zealand fibre production as in "a state of suspended-ani-mation." In their annual report on fibres of the world, Wigglesworth and Co. refer to the pending complete reorganisation of the New Zealand flax industry, "which has failed in recent years to respond to modern tendencies, having consequently lost ground." Reference is also made to the Government's interest in the industry, but, it is added, production is on so small a scale that the crop is readily absorbed in the New Zealand and Australian markets, only "a trifling export of lowgrade fibre taking place." Wigglesworth and Co. further remark that it does not appear to be sound policy to ship mainly' inferior material abroad. INCREASED BOUNTY. '.'The handsome bounty paid by- the Government, to producers has been increased," states the report, "the lower grades getting a reduced participation. Delay in fixing the bounty and uncertainty as. to the future policy of the Government have hindered development and reduced and delayed production.-' The benefit of the changes made may be felt in the coming year or later." .'"■.": > Reporting on^ fibre values m the United Kingdom for 1937 and 1936 at January 1, Wigglesworth and' Co. give comparative prices of sisal, Manila, Cebu, and New Zealand' fibres as follows:— . 1937. 1936. Per ton. Per ton. Fibre £ s. d. £ s. d. African sisal Xo. 1 ... .29 0 0 .28 10 0 Cefcu No: 2 25 15 0 19 10 0 Manila J2 « » ' 2. 0 0 . X.Z., fair grade 24 10 0 20 la 0 ~ A leading New Zealand merchant of •long experience in the New Zealand export trade in flax, when interviewed by "The Post" on the present position of the industry, remarked that: ; "There ia no industry in New Zealand,■_ with the possible exception of gold mining, that has appealed so eloquently to public credulity as flax. ' "A few years ago," he went on, "flaxplanting companies were springing up throughout the North Island. Large sums of money "were provided by the public to finance these ventures, but most of them proved to be complete failures. Company promoters confidently asserted that flax-bearing lands would produce five times the revenue that could be won if the same land were used for dairying. Figures were used in attempts to prove these statements; experts, inside and outside the Government service, heartily supported the propaganda. COMPETITIVE FIBRES. "But there is very little real romance associated with flax. During the past 25 years the industry has sustained a series of staggering blows. Prior to 1910, New Zealand flax had a definite place in the world's fibre markets. A sufficient quantity was then being produced to make it a market factor amongst overseas consumers. To a large extent the New Zealand'produc- ■ tkur was then indispensable. Flax acted as a brake on Manila hemp, and > -'i\' was -probably regarded ■'■as' quite as, ■important a unit as Mexican ' and: Java -sisal. From 1910 onwards, however, the production of sisal in Mexico, ' Java, and Tanganyika increased enormously. • These fibres, produced by coloured labour, not only became highly competitive with New Zealand hemp; but in the course of time they have now almost driven that fibre 'off the London, Continental, and American markets. "Between 1915 and 1920 a blight at- ' tacked growing flax in New Zealand, and vast areas were affected to the point of extermination. In the Mana: watu alone, not less than 15,000 acres of flax-bearing land reverted to dairy pasture 'as a result of the blight,' and this land will never grow flax again as a commercial crop. The reason for this state of affairs is simply a. matter of financial expediency. CAPITAL COST PROBLEM. "From the time flax is planted until it is ready for milling, five to seven years must elapse. No owner of land could afford to pay land tax, and, at the same time, leave a large sum of non-interest-bearing money dormant, particularly if the fate of flax as a private venture were threatened by State control of the industry. "There is a widespread belief that New Zealand flax can be put to better uses than conversion to binder twine and various types of cordage. Some persons claim that its potential virtues are incalculable, and this may not be an exaggerated claim. So- long as undressed fibre is reserved for its present ultimate uses, very little is to be gained by striving to produce a higher graded article than the trade knows at present. This may sound like heresy, but consumers of New Zealand fibre have stated repeatedly that they are quite satisfied with welldressed 'high-fair' grade. It adequately suits their purposes. Though they are always pleased to receive delivery of specially well-dresseed fibre of outstanding colour, they cannot pay more than a trifle above the standard grade, as there is no market for binder twine manufactured from higher grades of New. Zealand. This is obvious .enough; utility, not appearance, must necessarily be the dominating factor with an article such as binder twine. It is not likely that the consumers' attitude in this regard will be materially changed. FUNDAMENTAL PROBLEMS. "This simple fact brings home the necessity of discovering the real destiny of flax. This would indicate the desirability of intensive research work, partly in New Zealand, but chiefly in the United Kingdom. Leeds University suggests itself. The Government, in its desire to assist an industry that is capable of employing so much labour, quite clearly has the welfare of the Dominion at heart; but it is doubtful whether an 'expensive and elaborate' excursion into the manufacture and control side of the business is not a gambler's throw to save an industry that might well sustain itself, if fundamental problems are first fully recognised, and next resolutely grappled with."