THREE MILLS REOPEN

Evening Star, Issue 21005, 20 January 1932, Page 2

THREE MILLS REOPEN

FLAX MILLING REVIVAL AID FROM UNEMPLOYMENT BOARD [Pin Unitbd Psbis Asiocutios.] WELLINGTON, January 19. As a preliminary to the rehabilitation of the flax industry a move will be made during the coming week, when three flaxmills in Manawatu will be reopened. As a direct result of assistance from tho Unemployment Board full time employment will be given to about 100 married men who are at present engaged on relief works. 'The successful conclusion of the negotiations was announced to-day by the deputy chairman of tho board, Mr J. S. Jesscp. Lengthy negotiations have been carried out between the board, the millers, and the exporters, and as an outcome three mills will start upon fulfilling export orders. The rehabilitation of the flax industry has been engaging the attention of the board for a considerable time, and much thought has been devoted to the best means of assisting the flaxmillers, who have been particularly hard hit through the fall in prices overseas for hemp. It was recognised by the board that profitable employment c. uld be found in the industry for a large number of men, provided the millers were assisted over the present difficult period. The industry at one time employed between 4,000 and 5,000 men, but through the closing down of tho mills the scope for work was narrowed down until any chance of employment was most remote, The first Unemployment Board devoted some attention to the flax industry, but the present board has gone a step further, and it has been able to arrive at a workable basis of agreement after protracted investigation and negotiation. Tho board has been meeting the difference in the exchange over 5 per cent, between New Zealand and Australia, and by this means it has been assisting the flax industry to a considerable extent, in other _ directions tho board has also given assistance m connection with labour in swamps and tho mills, and tho outcome is that it has been possible to arrange for the reopening of three mills on full time. 11 is hoped that this will be but a' start in the revival of the flax-milling, and that tho activities in this direction will be extended in tho near future. Tho board has given very full consideration to the difficulties of tin industry, and the problems that must be faced in competing on the overseas market once again. It is, however, confidently hoped that by means of the assistance that will be given, exporters will be able to recapture valuable man kets. Experiments are being carried out with the object of reducing manufacturing costs in the flax-milling industry. The board has also given this question its attention, and it is hoped that as a result of these experiments it will be possible to reduce the processing costs.