THE FLAX INDUSTRY.

New Zealand Herald, Volume LVI, Issue 17242, 19 August 1919, Page 8

THE FLAX INDUSTRY.

<& SERIOUS OUTLOOK REPORTED. * HIGH STEAMER FREIGHTS. PROSPECTS FOR FUTURE. " The serious effects on the flaxmilling industry, brought about by the maintenance of high steamer freights on hemp, were discussed yesterday by the secretary of the Northern Elaxmillers' Association, Mr. J. A. Duncan. " The maintenance of high steamer freights on hemp has seriously affected the flaxmilling industry in the Auckland Province," said Mr. Duncan, " and has also curtailed production throughout the Dominion. This state of affairs has existed for oyer four years, as the first increase in rates took place soon after the outbreak of war." The effect was slow, said Mr. Duncan, but about six months ago the position became serious, and .fiaxmiilers were forced to unite in the hope of arriving at a satisfactory settlement* with the steamship companies. Early in March an extraordinary situation confronted millers on abcount of the increase in outward shipping rates. In October, 1918, the freight was increased to £20 a ton for hemp, and £32 a ton for tow, as against a -pre-war, rate of £3 ss, and tho millers found export an unprofitable proposition The Northern Association communicated with the Minister for Lands, the Hon. D. H. Guthrie, aekiuufor hi s assistance. The Minister replied that representations had already been mad© to the Imperial Government, through the High Commissioner. Nothing further wag done and by March last the majority of the mills in the Auckland district had closed, only tares of the Waikato mills remaining open. As a consequence several hundred men were thrown out of work. At this time the market price for hemp was £oO a ton," said Mr. Duncan, " but after paying the freight and other charges ' the millers received a return of only £30 a ton." It was considered, he said, that ' a decrease of £5 a ton on the freight rates was necessary. The hemp and tow was being then stored without hope of sale. a About 10 days ago the manager of a flaxmilliug company in the Waikato stated that, the industry was.in danger of dying out owing to the increased freights, high land values, and greater cost of labour. In his district 170 acres of flax country were being converted into dairying land. At that tame over 400 tons of uninsured hemp were lying at Morrinsville. Mr. P. Henry, president of the Northern Association, maintained that the industry was tottering to a fall unless the Government realised the gravity of the position. "The flax industry has always been one of ups and down," said Mr. Duncan, "It was in the lowest depths of depression at the time of the census of 1896, when only 52 mills were inj operation in the colony, employing 647 hands." During the next twenty years the number Of mills fluctuated from" 101 to 50, and in 1916 there were 76 mills in operation. In the latter year freight restrictions and higher freight rates were current, and the anxiety which is so keen at present wasfirst felt. In 1913 28,092 tons of phormium fibre and tow were exported, in 1914 23,928 tons, in 1915 26,685 tons, and in 1916 32,252. of a value of £797,602, £492,230, £«d.0,059, and £1,078.632 respectively. In 1917 only 26,016 tons were exported, but the price realised was £1.232,608, of which £574,592 was on account of exports to' Great Britain. For the year ended March 31, 1918. the value of the flax export was £1,298,872. At the pre-war price of 1913 the same quantity would have realised only £614,146. The report of the Empire Flaxgrowing Committee, issued recently, recommended the continuance of the efforts to develop flaxgrowing within the Empire. The report stated:—"lnformation has been received pointing to the conclusion that flax can be grown successfully in Australia on a large scale if the economic conditions are such that the crop is likelv to offer sufficient inducement, but pending further information, it defers references in connection with Australia. The same thing applies to New Zealand." Mr. Duncap said he considered the " economic conditions'' referred to were mainly the freights. Britain did not confine her purchase of -flax during the war to the Dominions alone. The American product was popular at Home during the war period on account of its cheapness, and the American freight rates were much lower than on British lines. In addition, said Mr. Duncan, New Zealand exporters especially have been met with the competition of manila and other similar products from the Philippines, and sisal from Mexico. Large supplies were also drawn from East Africa, and this was am. obstacle to the New Zealand producer. The prospects of reviving the industry would be bad if the freights were not lowered, said Mr. Duncan. There was "no doubt that the uresent system was prohibitive and unfair. A redeeming feature was the granting of licenses by America for the importation of New Zealand hemp without limit as to quantity, but this was hardly enough, , as ; freight rates were prohibitive. The flax trade had been for years a staple industry, and was threatened with dissolution if proper aid were not given it.