MILLERS DISCOURAGED

Otago Daily Times, Issue 26471, 27 May 1947, Page 7

MILLERS DISCOURAGED

PHORMIUM FLAX PRODUCTION ANNUAL MEETING OF DONAGHY’S The annual meeting of shareholders of Donaghy’s Rope and Twine Company, Ltd., held yesterday afternoon, was presided over by Mr J. H. Meek, chairman of directors. In moving the adoption of the report and balance sheet, the chairman made reference to the death of Mr Willi Fels, and stated that the board had filled the vacancy by appointing Mr H. F. Sincock, who had retired from the general managership on May 31, 1946, after 52 years in the service of the company. Continuing, he said that the extensions to the company's Auckland soft fibre plant and buildings had proceeded steadily during the year. The new building was almost completed, and some of the new plant had been received and installed, and would, it was hoped, be in full operation by the end of this year. Further plant was still to arrive to enable the soft fibre department to cope with the full normal requirements of New Zealand in shop twines, seaming twines, and kindred lines. It was fortunate that the new plant was ordered some considerable time ago, as deliveries to-day were from 24 to 30 months ahead, and prices very much advanced. Working Under High Pressure

During the war, the chairman said, the company’s hard fibre plant was working under very high pressure—often 24 hours a day. Obviously wear and tear was abnormal, and many worn parts had had! to be renewed. There was still much to be done in that direction, but it would be noticed in the balance sheet that provision had been made for these repairs and replacements. Every. endeavour was being made to improve working conditions in their factories, and a comprehensive scheme for staff amenities was being prepared. The demand for all the company’s products continued to be good; in fact, there was a difficulty in securing sufficient supplies of certain raw materials such as manila and sisal hemps and New Zealand phormium hemp. The shortage of wire for use in'wire hay balers, and the popularity of the new twine hay balers,, had given increased business, but this had reduced the raw material stocks. Normally no difficulty would be met in replenishment,‘but thfe present worldwide shortage of hard fibre hemps had meant a- struggle on their part to secure supplies. Even locally-produced phormium hemp'was'difficult to secure in sufficient quantities for the company’s nesls, owing to increased demand for woolpack manufacture to meet the shortage in imported jute paqks and to decreased output by the phormium flax millers. Lessened Output of New Zealand Flax

“ The supply position is, in my opinjon, aggravated by the strait-jacket of controls and bureaucracy,” Mr Meek said. “ For instance,'New Zealand flaxmillers have had their prices controlled to such an extent since 1939 that they have become discouraged and turned to other and more paying pursuits, resulting in a lessened output of New Zealand flax hemp. Prices have been improved since April 1 of this year, but this has come much too late to give the supplies we need to-day. Now fibre has to be imported, and in some instances at three times the price of our New Zealand hemp. After reviewing the balance sheet in detail, Mr Meek said that, unless anything unforeseen, happened, the company was assured of a busy period in tne coming year. It was unable to cope with the business offering, and could not meet the demand until the new plant had arrived and was installed.

The retiring directors, Mr R. Macdonald and Mr J. M. Stewart, were re-elected.