NEW ZEALAND TOBACCO

Evening Star, Issue 22526, 19 December 1936, Page 24

NEW ZEALAND TOBACCO

SALES IN BRITISH MARKET •f ______ PROSPECTS OF SUBSTANTIAL PRICE INCREASE [Per United Press Association.] WELLINGTON, December 18. There is a prospect of a substantial increase in the British prices for N£w Zealand tobacco leaf this season. The Minister of Labour (the Hon. H. T. Armstrong) said this evening that ad)vice had) been received from the High Commissioner (Mr W. J. Jordan) to the effect that a recent shipment of Nelson-gro,wn tobacco leaf had arrived in good condition and there were excellent prospects of its disposal at prices 50 per cent, better than those obtained 1 for the first trial shipment sent to London last year. “ The Government fully realises the importance of building up an export trade in New Zealand: leaf, and for the past two seasons has guaranteed to growers through ray department and out of the Employment Promotion Fund a return of Is per lb in respect of leaf accepted for export,” said Mr Armstrong. “ Last year 66,0001 bof leaf from the Nelson district was shipped to London and soldi through the High Commissioner for New Zealand, realising a net return of a little over Is 4d per lb. “It is very pleasing to hear that there is every prospect of obtaining a better price in respect of leaf shipped this year, and it would) appear that growers can now look forward with a certain degree of confidence to the building up of a profitable market in the United Kingdom for the disposal of their surplus • leaf. Unfortunately, owing to damage of part of the crops by hail and on account of other reasons, only 79,0001 b of leaf were shipped this year, but with a continuation of the Government guarantee for a further season it is anticipated that next year it will be possible to ship a considerably greater quantity of leaf than has been sent during the past two seasons.”-