Fixed Kauri Gum Price to Check Decline in Industry

Northern Advocate, 10 January 1939, Page 7

Fixed Kauri Gum Price to Check Decline in Industry

[Special to “Northern Advocate ”] AUCKLAND, This Day. QN HIS RETURN TO AUCKLAND FROM WHANGAREI AND THE FAR NORTH YESTERDAY, THE MINISTER OF INDUSTRIES AND COMMERCE, THE HON. D. G. SULLIVAN, ANNOUNCED THE INSTITUTION OF A GUARANTEED PRICE SYSTEM FOR KAURI GUM. Mr Sullivan said that the Internal Marketing Department had assumed control over the marketing of kauri gum, and had fixed minimum prices for the various grades below which the brokers might not buy. Following are the minimum buying prices which have been decided upon as a result of an agreement by the diggers and the merchants, with the Internal Marketing Department acting as arbitrator: —

► Chips, 60 per cent, gum content, 22/a cwt., Auckland; 65 per cent., 26/-; 70 per cent, 81/-; 75 per cent., 34/-; salt or clay cleaned, not less than 80 per cent.- gum content, 38/- a cwt., Auckland; nubs, 42/- to 50/- a cwt; chalk, 36/- to 45/- a cwt.; B2’s, over half-inch sieve, free from chalk, 56/to 60/-; B3’s, 40/- to 50/-. These prices are stated to follow very closely the current market prices. Department as Buyer. If merchants and pickers cannot agree, the internal Marketing Department is now authorised to buy the gum. By this means, it is stated, the gumdiggers will receive an income at least as large as they would earn on public works, the employment io which they would gravitate if not receiving an adequate livelihood from digging. Mr Sullivan said that in recent years the kauri gum industry had been declining. The falling-off in supplies, faulty marketing methods, and more particularly the development in the production of synthetic gums, had gradually brought about a condition whereby employment in New Zealand in the digging of gum had fallen from 6000 In 1913 to a few hundreds at the present time.

In 1913, New Zealand’s kauri gum exports were valued at £549,106; last year the value was £96,161. Turning to> Substitutes.

Although prices for kauri gum had recently been relatively good, 'Mr Sullivan stated, the Government’s inquiries had shown that varnish and linoleum manufacturers were gradually turning to substitutes. It was clear therefore that existing methods of marketing 'and utilisation would not bring about a position where any great numbers could be employed in the industry.

The most promising development was considered to lie in a process, the patents of which were held by the Goovernment, whereby the gum could be refined to a standard.

An officer of his department, Mr J. Hosking, had been sent to England for the purpose of going fully into the question whether this process could be used on a commercial scale for marketing kauri gum. -■ ,