FLAX INDUSTRY

Timaru Herald, Volume CLVIII, Issue 23314, 25 September 1945, Page 4

FLAX INDUSTRY

Plans For The Fut ure Official Announcement (N.Z.P.A.) WELLINGTON, Sept. 24. The Government’s plans for the future of the linen flax industry were announced in the House of Representatives to-night by the Minister of Industries and Commerce (the Hon. D. G. Sullivan), during consideration of the Estimates when the vote for linen flax development was under discussion. Mr Sullivan said this industry was a wartime one established at the request of the British Government to replace Britain’s normal source of supply of linen fibre, ft was arranged that the British Ministry of Supply would meet all the production costs of linen fibre during wartime. Implementing that undertaking, Britain had already paid £185,000 toward production costs, but did not allow the sum of £106,343 for depreciation of plant and factories until March 31 last. That sum would have to be considered with the capital charges concerning which a settlement was still indefinite, although the British Ministry of Supply had said it preferred to leave the matter to us. As far as the future of linen flax in New Zealand was concerned, it had been decided that seven of the present 18 factories would be retained to build up a textile industry for spinning and weaving coarse and fine threads. A corporation would be set up managed by two representatives of the Government, two of 'the growers, two of the manufacturers and two of the workers. They would be responsible for the processing of flax in the seven Govern-ment-owned factories. All would be appointed by the Government and the corporation would be financed by the Minister of Finance.

Provision of Finance Mr W. S. Goosman (National, Waikato): Where will he get the money? Mr W. J. Polson (National, Stratford) : That’s what they need the Bank of New Zealand for. Mr Sullivan said thatathe industrial processes subsequent to the processing of flax would be carried on by two firms, one of which would spin the finer types of threads and the other coarse threads. One of these firms was spending some tens of thousands of pounds on the project. “We hope we will be able to develop a small but substantial textile industry for the utilisation of our linen flax,” concluded the Minister. Mr Sullivan’s statement was made after inquiries on the subject by Mr R G. Gerard and Mr J. Acland. It was extremely important to the farmers of ’Mid-Canterbury, said Mr Acland. to know what the future plans were because it was a suitable crop that could be worked in with their system of farming. Costs would have to be watched. The industry had involved about £750,000 in capital expenditure and there had been losses on growing and processing. He asked the Minister if Britain would pay part of the losses experienced in operating the industry in the last five years.

Election of Directors Mr Gerard, referring to the proposal that members of the corporation representing various interests would be appointed by the Government, suggested that it would be better if the growers and workers’ directors were elected. He had 'great hopes that the industry, which had done a great job during the war, would be established on economic lines, because It would be ideal for a country town. The Minister agreed that a marvellous job had been done with the production of linen flax entirely without precedent to guide those concerned. Farmers were entitled to great credit for producing an entirely new crop in their experience, and New Zealand craftsmen showed great capacity in constructing the machinery necessary for processing. He assured the House that the new industry would most certainly be conducted as an economic one. Private enterprise would grow flax, a Government factory would prepare it, and private enterprise would carry out spinning. . The Rev. Clyde Carr (Government, Timaru): Does the Minister plan to weave as well as spin? Mr Sullivan: Not at present. In the meantime' we will confine ourselves to spinning.