LOW FLAX PRODUCTION.

New Zealand Herald, Volume LXVII, Issue 20725, 19 November 1930, Page 13

LOW FLAX PRODUCTION.

LOSS IN THE INDUSTRY. MANY WORKERS IDLE. CO-OPERATIVE PLAN PROPOSED. 'flic flaxinilling industry is at a low rbh in the Auckland district and few of (lin mills are operating. Millers point out that their inability to keep running is flue to the low market rates ruling for fibre, coupled with tho high cost of production. In tho Foxton district, where a large flax-milling industry has been carried on for years, the depression is being felt to such an extent that recently the flaxmillcrs and the flaxworkers at a. combined meeting decided to ask that the award covering the industry be suspended. There has been no move of this nature in tho Auckland district, but so many men have been thrown out of employment through the closing of tho mills that efforts arc said to bo in hand for the reopening of certain mills on a. co-oper-ative basis. Several mills in tho Auck land district are now being worked m this way and in one or two other instances the mill-owners and their men are contemplating a similar move. ft is reported that one mill has been handed over to the workers, who have formed a co-operative party and will pay the owner a small rental for the use of his plant. In other cases the owner, who has been as badly hit by the slump as his men, has joined with the workers and become one of the party. Somo idea of tho serious falling off in fibre production in the Auckland district may ho gained from tho latest returns compiled by the flax grader. Tho total output in tho district for last month was <l9O tons of hemp and 93 tons of tow, while tho total for October of last year was 5793 tons of hem]) and 1864 tons of tow. Equally striking are the figures for the season to date. For the seven months from April 1 to October 31 of this year tho Auckland district produced 5819 tons of hemp and 1565 tons «f tow, as against 15,732 tons of hemp and 5440 tons of tow for tho corresponding months of lastyear. In spite of this considerable drop the Auckland figures are better than (hose for other grading centres. An increase in tho market price for fibre would enable some of the mills to commence operations. The present price of £lB to £l9 a ton is too low to permit tho average mill employing labour to work, and it is estimated that an increase of about £5 a ton would bo required to set them in action. Earlier in tho season some of the mills started but had to close as the price level fell. Millers who have their own green leaf are said to be making a small profit at the market price and others who are working under the best conditions can produce fibre at about £2O a ton.

Royalties paid to owners of flax areas play an important part in the cost of production. Last season the royalty paid amounted to about 7s a ton. while in earlier and better years the royalty went as hight as 10s- From what can be learned many of the flax owners are now glad to take from 2s to 3s a ton royalties. Eight tons-of green flax go to the making of one ton of fibre. The most serious competitor of the NewZealand flax fibro is sisal hemp, which, at tho latest, market quotation, shows a demand at about £22 a ton. It is claimed that sisal is no better than New Zealand flax for many purposes.