LINEN FLAX

Evening Post, Volume CXXXVIII, Issue 76, 27 September 1944, Page 7

LINEN FLAX

GLOOMY OUTLOOK

SUPPLIES EXCEED DEMAND

The linen jlax position was not as bright as they would like, said the Minister of Industries and Commerce (Mr. Sullivan) in the House of Representatives last evening when the development of the industry was under discussion. Britain was not asking1 for more linen flax and supplies had exceeded the demand. Northern Ireland had produced very substantial quantities, so there was no pressure from Britain for New Zealand to increase the quantity.

Fifteen thousand acres would be planted this year and Britain would take what was produced, but it would not have worried Britain if the area had been less, continued the Minister.

As for the post-war position the fact he had referred to would make it fairly plain that the Dominion would have to rely on her own utilisation for a future market. The Government was planning a textile industry based on continuance of a number of the factories. At the moment it looked as if half or even more would have to be closed down, although the position would be investigated to the utmost and everything possible would be done to keep the industry moving and to preserve it to whatever extent was possible. , New Zealand, however, could not look to Britain for a postwar market. , ( Under the arrangement made Britain would meet practically the whole of the cost of producing linen flax supplied to her. So far as the capital was concerned that matter was held over by the United Kingdom for discussion after the war. LOSSES ON INDUSTRY. Losses on the industry so far amount to £96,000 in 1942, £158,000 in 1943, and £80,000 in 1944. With the gaining of experience in growing and processing as time went on they would be able to develop the project into an economic industry.

He emphasised that members should remember that the industry was established very quickly as a war effort and Britain was exceedingly grateful for the assistance New Zealand had been able to give. But the Dominion could not look forward to any overseas market for linen flax after the war..