Kauri Gum Industry. Deemed 'Uneconomic

Northern Advocate, 30 August 1948, Page 4

Kauri Gum Industry. Deemed 'Uneconomic

THE Minister of Industries ancl Commerce (Mr Nordmeyer) has refused to raise the minimum guaranteed price for kauri gum, and it is feared that Northland’s trade in this product wiU soon be e ™j e^' letter tQ Mr s> w> Smith, M.P. for Hobson, who asked for a raising of the price, the Minister states that exports o gum from Northland had steadily declined from 6000 tons m IJZI to ■just over 1000 tons in 1947, and suggests that the men engaged in the industry would be better employed in other occupations or locations.

Mr Nordmeyer gives three reasons for the decline in exports:: (a) Paint and varnish manufacturers have turned from kauri gum to low-priced synthetic resins and esters, also natural gum copal from the Belgian Congo, which has a good uniform quality and price. (b) Kauri gum chips are, used in the manufacture of linoleums, but the ratio of kauri gum to other ingredients is small. As some of these ingredients, such as linseed, are in short supply, the linoleum combine of Nairns, Barry, Ostler and Stains, which has factories in Scotland, England, Europe, Canada and Australia, has not placed orders. (c) Failure of the diggers to supply a quality product of uniform high grade test. “FARTHER EMBARRASSMENT” The Minister adds that diggers, as a whole, did not appear to appreciate the variance in grades of gum, even in colour, requested by overseas manufacturers.

“I have discussed the question of raising the minimum guaranteed price with the Internal Marketing Division, which is responsible for that price but it is of the opinion that no good purpose would be served by this process.

“It would probably be harmful, as it would tend to stimulate production and - cause further embarrassment in the accumulation of stocks for which there is no demand.

NO INTEREST “Leading paint manufacturers have been approached, and, from their replies, it is apparent that the position held in former years by kauri gum has been completely taken by synthetic resins and Congo copal. “These manufacturers display no interest whatever in kauri gum.” Investigations showed that, on a peace-time basis, the industry was not likely to recover the position it had 25 years ago. It had been a declining industry for many years. Since the primary reason for this was that manufacturers and users regarded the gum as being inferior and less attractive than other raw materials, the Minister did not feel that the Government could justify economic support, which could only be at a cost to the general public. Such support would not meet the problem of disposing of additional quantities of gum which would be dug up if there was a higher price guarantee. OTHER EMPLOYMENT

“It is realised that the. present position is a difficult one for those dependent on gum digging, and it is hoped that the adjustment to other occupations or locations can be achieved with a minimum of hardship,” Mr Nordmeyer continues.

“This is a question primarily for the Minister of Labour and Employment (Mr McLagan), and is closely related to the problem of securing gainful and useful employment for the Northland Maori population. “The Department of Labour and Employment has been giving close attention to this problem for some time, and has established a special committee upon which the various departments concerned are represented.” 1947 PRICES AT PEAK Mr S. I. Rawnsley, an Auckland kauri gum exporter, said in a letter to Mr Smith that the large quantity of low grade chips unsold this year might be the direct result of the unsatisfactory qualities exported during the previous year. Prices were at a peak in 1947, when a record had been established for medium and low grade chips. It would not be prudent to expect such values to continue, but many producers had incurred liabilities on that basis.