TOBACCCO GROWING

Nelson Evening Mail, Volume LXXI, 30 March 1938, Page 5

TOBACCCO GROWING

UNSATISFACTORY POSITION REPRESENTATIONS TO THE MINISTER At a meeting of the Tobacco Growers’ Federation consideration was given to problems affecting the industry at the present time. After an investigation lasting from 10 a.m. to 10 p.m. it was decided to meet the Tobacco Board, and place the growers’ case before that body for action. A deputation consisting of Messrs F. A. Hamilton. R. Stevens, K. J. Holyoake M.P., M. H. Thorn and the secretary, Mr N. J. Lewis, was appointed to wait upon the Board. The Federation was fortunate in being able to meet the Minister of Industries and Commerce, the Hon. D. G. Sullivan, with the Board, and at a conference on the 26th March at Nelson, the whole question was thoroughly j examined. The Minister gave full con-! sideration to the case presented to him and understood that immediate action ■ would be taken to see whether the | scheme proposed by the Federation : could be brought into effect. Requests were made that the levy on leaf be reduced or temporarily abolish-' ed. A special request was made in regard to the remission of the levy on last season’s exported leaf. It was also j asked that the cost of licenses and warrants be reviewed, in order to have the fees reduced to cost. Special reference was made to warrants in cases where leaf was being grown both for export and local sale, the Federation stating that there should be no double charge. Objection was taken to th? Board’s proposal arbitrarily to divide leaf pro rata to export and local sale W’here the crop is not sufficient for both contracts. Liberty of action for the grower was claimed, particularly in view of unsatisfactory export prices. The main submission in the Federation’s case concerned the present position of the industry, leading to the necessity of the grower receiving a higher price. Doubt was expressed r.s to expansion of exporting leaf, as returns had fallen, and attention was directed to the cost of production. After Governmental investigation, this had been fixed at a figure in excess of what the manufacturer said he could pay, and the gap between price received and cost, plus a reasonable re- ! turn to the grower, had to be bridg-! After a survey of conditions leading ! to this state of affairs, the object of! the submission was said to be to suggest ways by which the manufacturer could i be placed in a position to pay the price required. The companies were faced with increasing competition from imports until the point had been reached where it was very difficult for them to hold their output of New Zealand leaf. Figures were quoted showing in three years increases of cigarettes imported of 128 8 per cent., while of the increase in the consumption of cut tobacco for that period. New Zealand leaf could claim only 12 per cent. Under these unsatisfactory conditions it was obvious that the production of leaf would decrease. The remedies proposed were tariff

j alterations giving further protection i against foreign tobacco, excise remission, or a combination of the two methods. Stressing particularly the effect of excise reduction, the Federation gave its opinion that this was the easiest and most effective method of meeting the situation. A subsidy was not contemplated if the position could otherwise be rectified. Finally, it was urgently asked that the Board deal with the question on a broad basis, and not make a temporary • arrangement for this season, which would leave the main question an an- , nual problem. The Board was requestied to give its reply immediately in view i °t the approach of the growing season. A general discussion of the case was taken and it is expected that decisions will be made in time to cover the new ! buying season.