FLAX-MILLING INDUSTRY.

Otago Witness, Issue 3996, 14 October 1930, Page 63

FLAX-MILLING INDUSTRY.

FURTHER PLEA FOR SUBSIDY. WELLINGTON, October 9.

A renewed plea to the Government to give assistance to the flax-milling industry was made to the Acting Prime Minister (Mr E. A. Ransom) and the Minister of Labour (Mr F. G. Smith) this afternoon by a deputation representing the Foxton Flax Workers’ Union, supported by other bodies and institutions. The Acting Prime Minister said the Government could not undertake to grant a subsidy without going fully into the question, and he undertook to have the matter placed before Cabinet. Introducing the deputation, Mr J. Linklater (Manawatu) said that owing to the low price of hemp in the markets of the world all the mills were closed, and consequently unemployment was widespread. Many of the men out of work were married, and there was a large amount of distress among them. If the Government gave the industry a subsidy the mills would, be able to start immediately. The Minister of Labour said the Government recognised the seriousness of the position, and sympathised with those who were suffering. So far as the unemployment fund was concerned, nothing could be done until the unemployment board had been appointed, and that necessarily took time. However, there would be no delay, in that matter. He pointed out that a clause had been inserted in the Bill providing for the sum* of £lOO,OOO to be placed at the board’s disposal in anticipation of the fund, which would be raised by levy. That had been done almost entirely as the result of representations in connection with the flaxmilling industry. Mr Ransom expressed surprise at learning of the distress in the Foxton district. He suggested that employers and employees should get together and ascertain whether they could agree on a basis for the commencing of operations at a lower standard of wage if the Government subsidised the industry. He admitted that their request had an advantage in that it was in the direction of assisting an industry which was productive, and the nature of the assistance would be compensated for in the sale of the product, and thus the money spent in the subsidy would not be lost to the country. The Minister stated that once the subsidy had been granted it was liable to be regarded as a fixed charge on the Government, on which the industry was liable to lean.