THE FLAX INDUSTRY.

Otago Daily Times, Issue 21019, 7 May 1930, Page 19

THE FLAX INDUSTRY.

GOVERNMENT HELP SOUGHT. STABILISATION FUND SUGGESTED^- ' (Peb United: Press AayqciVnoN.) ■ , AUCKLAND, May 6. ‘.■“■The position la absolutely .desperate so fai' as the industry:, is: concerned. It is simply the force pf; ( circumstances which has brought yjt to ypy to-day.” The above- the New! ' Zealand/ flax - industry -was made' tfhen a large and influential-deputation' waitedthis morning upon theMinisterof Agri- " culture (Mr G.W.Fdrbes).' / 1 \ The Leader of the Opposition 1 (Mr VLG. Coates) said that up to March 3lj 1929, the total export of' bales of flax amounted to a valufe of £402,421: The ■ price of fair hemp had receded Irohr £25 ‘ a ton and- now stood at £2l 10 s. At tiines when New Zealand hemp was not “ available sisal was substituted, it whs vital to the New /Zealand industry to keep up a steady supply. At the present; time the prices quoted were below the, cost of- production. What • the deputation desired was that the Government, should introduce a stabilisation fund. to see the industry over the winter. Approximately \j-as necessary, and it. was considered a reasonable request. Hundreds of workers were employed in the industry, and they were prepared to make a sacrifice by taking-lower- wages. ". Mr E. L. Broad (president of the/ .Northern Elaxmillers’ Association) said. that the hemp industry" was in a deplor-! ; able condition. " • .Representatives were? present- from all the; mills He referred to the fact that the Common wealth Government had introduceda bounty on linen, fMx, and linseed. ; .Mr Forbes: Was. that not; tq establish; itr ■ - v v-;- "".u ■' Mr Broad said it was important that the industry should be kept alive. - The Government had already assisted 1 the iron industry, and the pig, fruit, and wheat-growing industries. - If assistance.; ‘ were , not given the flax industry; 17; mills id the Auckland district, . employing between 350 and 400 men,-would be* thrown out of work. Most of the men were married. In addition to .the meh directly employed, many others wouldbe affected. They had reduced the cost’ of production to the lowest minimum,* and wanted the Government to fix the minimum price for fair hemp at. £25 a) ton by a contribution of £4OOO. The) Government could stabilise the fund. If? the price of hemp exceeded £25, a ton) the millers would be prepared to refund an equivalent amount. ; Mr E. T. Frost said, in reply to theMinister, that the price of hemp was now.! at the lowest point since the war. If) the Government acceded t<\ the request £30,000 of exportable product could be accumulated in a few months. The quesf tiqn of men being out of work .was very, serious. If the Government had to find-, work for the men at 14s a day it would amount to far more than the* £4OOO. . The Minister asked what would be the' - position if the market did not come, back to normal after the winter. Mr Frost: The question would have! to be reconsidered.! ) Mr ' Forbes: Then the subsidy ■ might) be indefinite. , The Minister added that he. realised: . the importance of'the-industryand the' representative nature of the deputation.) Where unemployment was concerned ,the| question wqs important to 'all. He did; not want to 1 see any inorfi men out of work, and anything that would keep) ,- men employed would have serious con-? : sideration. A subsidy was a question? for the Minister of Finance. • Afc prc-‘ ; sent New Zealand was faced with wool? being below production price,, and there, was a serious-drop in other'primary, pro-1 ducts.. The question-had to be looked> at comprehensively. He did hot* think] that the .position , had : "been over-stated. ! Finally the Minister promised to eon- - suit the/Minister of Finaneec : '