HUNDREDS IDLE

New Zealand Herald, Volume LXXV, Issue 23029, 5 May 1938, Page 14

HUNDREDS IDLE

FLAX INDUSTRY GOVERNMENT INACTION ANXIETY AMONG GROWERS MOST MILLS CLOSED DOWN [by TELEGRAPH —OWN correspondent] •WELLINGTON, Wednesday "The continued inactivity of the Government, in spite of oft-repeated statements of determination to rehabilitate the New Zealand flax industry, is causing great concern and anxiety to flaxmillers throughout the Dominion,' said a prominent miller in an interview. "With the fall in the price of hard fibres, New Zealand millers have been unable profitably to operate on the export market with the subsidy now available. In consequence stocks of hemp have piled up in New Zealand stores, and markets which previously used our flax have looked elsewhere for hard fibre supplies. "Meantime, pending a clearance, all flaxmills, with a few exceptions, have closed, throwing out of employment many hundreds of adult workers. "Unless llaxmillers are assisted to maintain contact with their overseas customers during the present low-price period, the export market will most probably be lost f<?r all time, "Additional to the loss of the export market, unless mills are speedily enabled to reopen, will be the probable loss of the new promising flax textile industry. This industry will, if adequately encouraged, require in the near future at least 5000 tons of fibre per annum and will give employment directly and indirectly to anything up to 1000 people. It is little wonder, therefore, that those directly connected with the Dominion's oldest industry should feel gravely concerned over the present stagnant position."