TOBACCO INDUSTRY

New Zealand Herald, Volume LXXIII, Issue 22585, 25 November 1936, Page 9

TOBACCO INDUSTRY

RENEWAL OF GUARANTEE LICENSING OF GROWERS [by TKI.EGRArH —OWX CORRESPONDENT] WELLINGTON, Tuesday The Government has agreed to r®. new Inst season's guarantee of Is per lh. on tobacco exported during tho ]!).",(M937 season. It has also approved the Tobacco Board's recommendation that a minimum price of Is per lb. bo fixed for all leaf, purchased by manufacturers and exporters during tho current season ending March 31, 1937.

The Minister of Industries and Commerce, the Hon. I). G. Sullivan, said to-day that the regulations fixing this price had been issued. These would be a protection to growers against thii practice of buying up end-of-season leaf at very low unpayable prices. A meeting of the Tobacco Board had been held recently in Wellington and one of the matters considered was tlio granting of licences to growers to grow leaf during the current season. The board confirmed the principle of granting licences only to those growers who had bona fide contracts or arrangements with manufacturers or exporters for the growing of their leaf. Growers without contracts should therefore get in touch with manufacturers with the view to arranging such. Mr. Sullivan added that the board, however, had decided that this sc-scon a certain amount of latitude would bo allowed growers inasmuch as that licences would be granted even in cases where no contract or arrangement, had been made, but they would bo issued on the understanding that it' the growers grew leaf without such contract <3r arrangement they would do so at their own risk, insofar as ultimately being able to sell the lea), when harvested. The board also confirmed the principle that licences to grow should not be issued for 11 acreage and quantity in excess ot that; contracted for. , . "It should be noted." concluded the Minister, "that the board has fixed. November 80 as the latest date b.v which applications for licences to grmv this season may ka made. Licences will not-be issued in reaMCt of plications made after than care.