TheMANAWATU DAILY Times MONDAY, OCTOBER 19, 1936. Rehabilitation of Flax Industry

Manawatu Times, Volume 61, Issue 247, 19 October 1936, Page 6

TheMA NAWATU DAILY Times MONDAY, OCTOBER 19, 1936. Rehabilitation of Flax Industry

The flax industry—New Zealand’s oldest industry is of particular interest to residents of the Manawatu. For thirty years past, this district has been the principal producing area. The district owes much of its early prosperity and development to flax.

At one time a thriving industry, providing a substantial export return and considerable employment, the business has of late years been through most difficult times, len jcais ago some 1200 men were engaged in flaxmilling in the Manawatu. To-day there are approximately 200 so engaged.

The cause of the decline is twofold. Firstly, there came a disease known as “Yellow Leaf” that destroyed large aieas of flax. The greater cause, however, was the loss of market due to an invention. The chief fibre consumption arose from the manufacture of binder-twine, to harvest the world s ceieals. But the “heading” machine that stripped the grain directly from the field without reaping and stooking, eliminated the necessity for twine. The result was a disastrous blow to the world’s fibre trade and consumption shrank to half its former level.

The Government of the day has announced plans for the rehabilitation of the flax industry. In doing so it is following the precedent of Governments of this country for seventy years past. It, however, may be truly stated that the industry owes little to Government assistance for its development. In proportion to value of output, it is doubtful if any other industry in New Zealand has spent nearly as much upon research and experiment as have those engaged in flaxmilling.

Research initiated fourteen years ago has determined that there are many varieties of flax and some of these possess very superior qualities.

With the loss of the binder-twine trade, new uses must be found for our fibre if output is to be expanded. Two possibilities present themselves, paper manufacture and textiles. A start has already been made with textile usage at the Foxton woolpack factory. Paper tests have been made on numerous occasions during the past fifteen years and the value of New Zealand fibre is recognised by paper experts.

In view of the knowledge of these possibilities it might well be asked why the industry has not made greater expansion. The answer to this lies in one word—costs. The fibres with which the New Zealand product competes are produced by coloured labour, in Mexico, the Philippines, East Africa and the Dutch East Indies. Whether it will be possible to compete with those overseas producers who have a wage rate of Is to 2s a day whilst New Zealand millers must pay 16s to 20s per day is a grave question.

Wages costs raised 15 per cent, and values down 25 per cent, compared with a decade ago, would appear to have sounded the deathknell of the industry. It is difficult to vision research alone saving it for the future. Only by continuous subsidy would its future seem assured. To what extent can, oi would, the country stand to this policy?

The question is one that confronts every producer whose goods have their valu§ determined upon the world market. The drastic raising of internal costs without a rising exchange rate

must create difficulties.