LOWEST SINCE WAR

Taranaki Daily News, 8 May 1930, Page 20

LOWEST SINCE WAR

,-.JTEVV ZEALAND HEMP PRICES. “The position is absolutely desperate as far ae the industry is concerned. It is simply force of circumstances which has brought us to .you to-day.” This statement concerning the New Zealand flax industry was made when a large, deputation at Auckland waited upon the Hon. G. W. Forbes, Minister of Agriculture. - ... . The Loader of the Opposition (the Right Hou. J. G. Coates) said that up to°'March 31, 4929, the total export of bales of flax amounted to £4'02.421. The price of fair hemp had receded fiom £25. a 'ton. and now stood at £2l 10s. At times, when New Zealand hemp was not available, sisal was substituted. It was 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 for the Government to introduce a stabilisation fund to see the industry over the ■winter. Approximately £4OOO was necessary, and it was considered a reasonable request. Hundreds of workers were employed in tho industry, and they were ‘prepared- to make a sacrifice by taking lower wages. Mr. E.‘ L. Broad, president of the Northern Flaxmillers’ Association, «aid

the hemp industry was in a deplorable condition. Representatives were present from all the mills concerned. He referred to the fact that the Cornmonmealth Government had introduced a bounty on ' linen flax and' linseed. Mr. Forbes: Was that to establish it?

Mr. Broad said that it was important that the industry should be kept alive. Tiro Government had already • assisted the iron industry, and the pig, fruit, and wheat-growing industries. If assistance were not given the flax industry 17 mills in the Auckland dis- ' ■trict, employing between 350 and 400 men, would be thrown out of work. A Most of the men were married. In addition to the men directly employed, many others would be affected. They had reduced the cost of production to ■the lowest minimum, and wanted the Government to fix a 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 the Minister, that the price of hemp was now at the lowest point since the war. If tho Government acceded to the rei quest, £30,000 of an exportable product ■ could be accuipulated in a few months. The question of men being out of work waa very serious. If the Government had to find work for the men at 14s a day it would amount to far more than £4OOO. The Minister asked what would be the position if the market did not come back to normal after the winter. Mr. Frost: Thei) the question would have to be reconsidered. Mr. Forbes: Then a subsidy might be indefinite, • The Minister said he realised the importance of tho industry and the-repre-sentative nature of the deputation. Where unemployment was concerned, the question was important to all. fie did not want to see- any more men out of work. Anything that would keep men employed would have serious consideration. Tho subsidy was a ques- , tion for the Minister of Finance. At present New Zealand was faced with wool being below production price, and there was a serious drop in other primary products. The question had to be looked at comprehensively. He did not. think that the position had been overstated. Finally . the Minister promised to consult the Minister of Finance,