KAURI GUM INDUSTRY

New Zealand Herald, Volume LI, Issue 15750, 27 October 1914, Page 5

KAURI GUM INDUSTRY

GOVERNMENT'S BILL.

ADVANCES TO DIGGERS.

GENERAL APPROVAL.

[by telegraph— correspondent]

Wellington-, Monday. The Government's Kauri Gum Industry Amendment Bill passed its second reading in the House this evening after members on both sides of the House had expressed their approval of it.

The Prime Minister, in moving the second reading of the Bill, said that the Government was asking Parliament to appropriate a sum of £50,000 for the purpose of making advances to diggers on their gum in cases in which they are unable to sell it as a result of the dislocation of the market caused by the war. It was proposed to make advances up to 50 per cent., but it would probably not be necessary to advance move than 35 per cent. The gum would be insured and stored until it could be sold to advantage. The gum market had improved a great deal since the outbreak of war, but, of course, it would probably not get back to normal until the war came to an end. In the past a great deal of the gum was exported to Germany, where it was used in the manufacture of linoleum and varnish. In addition to the cessation of the export to Germany the demand in Great Britain had fallen, but the demand from America was keeping up. The officer appointed by the Government to take charge of the gum industry took a very optimistic view of the present position of the industry. In addition to making advances on gum the Government proposed to put men to work some of the gum lands. The Crown would not lose anything by what was proposed, and it would do a great deal to provide work for men who would otherwise be unemployed. Sir Joseph Ward, who supported the Bill, said that he had been informed in AucKland that the market had unproved a gieat deal, and that, in fact, the deman« for certain giaaes of good gum was greater than the supply. He had been informed that the gum officer appointed by the Government had not made any in- j quiries from the gum merchants. He thought that the officer should have visited tile merchants, as there was always two sides to every question. " j Mr. Coates (Kaipara) asked the Prime Minister to amend the Bill by providing that the 50 per cent, advance should be 1 bastd on the value of the gum at the out-1 break of the war. The price might fall coiis.uerably, and if the advance were based on the low price it might not be j iiirhcient. As to the merchants, he did \ not think there was any need to bother about them. This was the first time that the Government had taken such an in- •. terest in the diggers, who would get a •fair run" if the Bill were passed. The measure would do a great deal to improve the position of the industry. It might, in time to come ( be necessary to go further by nationalising the industry. Mr. Myers (Auckland East), in supporting the Bill, said that he believed that the gum industry was gradually recovering its position. He thought that the Government should keep itself in touch with the merchants as, if the latter ceased to make purchases, the price would be reduced to such an extent as to make it unprofitable to the diggers. Mr. McDonald (Bay of Plenty) said that he doubted whether the advance should be increased. The gum dug in the North of Auckland last year was valued at over £430,000, which sufficiently, illustrated the magnitude of the industry. There was no doubt that the Government was doing the right thing. Mr. Harris (Waitemata) said that the Bill would confer a great benefit on the gum industry. He,had letters from gumdiggers and others expressing appreciation of the action of the Government. He doubted, however, whether the Government should go as far as suggested by Mr. Coates' in advancing 50 per cent, of the value of gum at the outbreak of the war, as the prices were then very high. Mr. Massey, in replying, said that in view of the improvement in the market it might not be necessary for the Government to do very much under the Bill. He proposed that when the Bill was in Com mittee to move an amendment to the effect that in estimating the value of gum I for the purposes of the Act, the price I current on July 1 last be taken as the standard of calculation.