Export Market Lost by Flax Industry

Manawatu Times, Volume 64, Issue 108, 10 May 1939, Page 8

Export Market Lost by Flax Industry

Chief Customer Now Textile Manufacturing Plant OVERSEAS COMPETITION TO BLAME The fact that the flax industry had lost its export market and practically the only demand for fibre in the Wellington province was to meet the requirements of the textile industry established at Foxton was put forward by the representatives of the employers in the Conciliation Council, which met in Palmerston North yesterday to consider the framing of an award to cover the men employed in flaxmills in the Wellington Industrial District. The reason given was the impossibility of competing with sisal and manilla hemp owing to the relatively higher cost of production of the New Zealand article. The export market had vanished despite a subsidy of £7 10s a ton, said Mr. F. W. Vickerman, one of the assessors for the employers. It was dwindling and likely to dwindle. The reason was the excellence of the manilla output and the same applied to sisal, which was a very white and very uniform fibre. The industry was now dependent on the local textile trade, which was belfig developed at Foxton. Practically the only customer of the flaxmillers to-day was the textile trade. A certain amount was going into parcel twine and the manufacture of ropes. There had been recently certain changes made in the conditions and certain companies in New Zealand were contemplating steps which would lead to an increase in the usage of certain forms of fibre. Running to Capacity To-day the textile trade was making three-eighths of the total wool packs required in New Zealand. The mill was cunning at about 74 per cent, efficiency and to make the total requirements would mean installing additional plant at a cost of £60,000 or £70,000. It could not with its present machinery make a yard more of cloth than it had contracted for. One machine was working 73 hours a week and 1700 to 1800 tons of fibre would be used.

What the textile concern was to pay was already fixed to allow for the present costs. The proceedings were embarrassing to the people who were responsible for the future of the woolpack industry. It had demonstrated that it could weave fitfre just as successfully as those who handled sisal and other fibre. The whole dispute depended on the manufacture of textiles, the loom efficiency of which was equal to that in Calcutta, where softer fibre was used. The mill was really just a big experimental station. Are Wages Sufficient?

Mr. M. J. Reardon (Conciliation Commissioner): Is this not a consideration to get at whether the men in the industry are getting a living wage? Mr. Cornwell (workers' advocate): They are not getting a living wage. There is no comparison with any other worker throughout the country. Mr. Vickerman: There is no compulsion on them to stop. Mr. Cornwell stated that, though it was possible, as Mr. Vickerman had stated, that the export trade had been lost, it was strange that there had been a steady increase in the quantity exported. In 1932, 3375 tons had been exported to a value of £42,488; 1933, 3828 tons, £42,770; 1934, 3591 tons, £47,501; 1935, 3661 tons, £53,968; 193$ 5707 tons, £106,940; 1937, 5093 tons, £127,284. Mr. Vickerman remarked that last year ’a grading had only been about onethird of the previous year and the grading figures could be reckoned to be slightly in excess of the export figurea That had been obtained only by the aid of the £7 108 a ton subsidy. Mr. Cornwell: The market must have been lost last year. Mr. Vickerman: Yes. No Dividends Paid Mr. Podmore (a workers' assessor): You have to remember what has gone to the textile factory. Mr. Vickerman stated that if it had not gone to the factory it would not have gone overseas. The grading for last year had been onlyabout 2200 tons. The millers were the only channel through which the funds were distributed and they would be happy to dispense more if it was available. As far as the textile factory was concerned its total purchase last year from the millers amounted to £27,961 11s 4d for 1589 tons of tow and long fibre. Replying to Mr. Reardon, Mr. Wood (employers' assessor) said that Ross Rough and Co. had never paid a dividend nor had the directors received any remuneration. The industry was only a skeleton of what it used to be. They did at the present time have a local market but if the price was forced up that would be forced out. Sisal had completely captured the markets to which the export fibre had formerly gone. They could not compete with that article as to cost. The few mills that were now running were kept going solely by the Government subsidy and that would cease on June 30. They had been promised a five-year plan but the Government was sadly disappointing them. Mr. Reardon: What amount would be required to produce all the wool-packs for the Dominion* Mr. Vickerman: About 4000 tons. Rise in Costs He explained that that only referred to the wool-packs and did not allow for such things as floor covers and mats and various other articles which it might be possilbe to make in the future. Given the funds required and machinery of finer gauge, they could do their part. They had to get the cost down. He did not say bring it down by taking it out of the worker's hide, but costs had to be reduced somehow. When he had first gone to Foxton the cost per man hour had been lOd and to-day it was 20d. That being the case, said Mr. Cornwell, it looked as if the best solution was for the Government to take over the land and grow the flax itself and pay the men a reasonable wage. Mr. Vickerman said it did not matter

to them. He was prepared to help in any way he could. Mr. Podraore said that the workers had always been compelled to fight for any wage increase. As Tong as 35 years ago they were getting 7s a day and fibre was bringing £6O a ton. Now there was a restriction on sisal and he thought this should provide a definite opportunity for the New Zealand fibre. Mr. Reardon thought that with the restriction things should be different this year. Mr. Vickerman: I can tell you that we are going to lose £6OOO this year. At that stage the matter was left and the council proceeded to discuss the conditions of the proposed award.