FLAX INDUSTRY PLAN

Evening Star, Issue 22723, 10 August 1937, Page 2

FLAX INDUSTRY PLAN

AGREEMENT REACHED NO GOVERNMENTAL COERCION ■[Pee United , Press Association.] CHRISTCHURCH, August 9. The Minister of Industries and Commerce (Hon. D. G. Sullivan) announced to-day that the amended plan which had been worked out for the flax industry by the Bureau of Industry in conjunction with representatives of the industry had now been approved. A vote of the industry had resulted in approval being given to the plan, the first plan to be formulated under the Industrial Efficiency _ Act. An. industrial committee consisting of representatives of the various sections of the industry, the workers, and the. Bureau of Industry would now be set up to give effect to the provisions of the plan. Mr Sullivan said that he had great hopes that as a result of the plan coordinating the efforts of all the interests in the industry, including the Government itself, the flax industry would be revived on a sound basis, and would contribute to the prosperity of all those engaged in it and to the economic welfare of the country as a whole. The Efficiency Act was based On selfgovernment in the industry, plus coordination, and not upon governmental coercion as some prejudiced persons would have people believe. “ Steps will immediately he taken to bring the plan into operation,” Mr Sullivan said, “ and the flaxmillers and growers are generally pressing that early action should be taken in this respect, and are enthusiastic of the prospect of at last securing co-ordina-tion and organisation within the industry. The principal matters upon which unanimity was not reached in regard to the provisional plan were the proposed methods of marketing* of price fixation, and the setting up of a Government commercial mill. After several conferences with special committees amendments were made to the provisional plan, and these met with the general approval of the representatives of the interests directly concerned and of the Government. The principal feature of the plan is the setting up of an industrial committee under the Industrial Efficiency Act, 1936, such committee to be given by regulations the necessary powers to reorganise and control the industry in accordance with the other features of .the plan of rehabilitation. „, '

“ The main amendment to Die provisional plan,” continued Mr SulKvan. “ consists of the continuance of Government assistance to the industry by means of a subsidy on the fibre exported in lieu of the fixed price proposed in the first instance. The question of the establishment of an experimental commercial mill is to be referred for consideration to the Industrial Committee, and if established is to be operated under the supervision, of the Industrial Committee. The committee is to be responsible for the efficient organisation or the marketing of the fibre in the interests of the industry, including the provision of standards. This latter provision in regard to marketing will give freedom of action to the committee to select the most efficient marketing channels and methods.’’-