LINEN FLAX

Wanganui Chronicle, Volume 89, Issue 228, 26 September 1945, Page 3

LINEN FLAX

THE N.Z. INDUSTRY PLANS FOR THE FUTURE NEW CORPORATION TO BE SET IP BY GOVERNMENT. (P.A.) Parliament Bldgs., Sept. 24 '1 he Government's plans for the full ure of the linen-llax industry were {announced in the House of Representatives to-night by the Minister of In* dustries and Commerce, Mr. Sullivan, curing consideration of the Estimates, when the vote for linen-flax ,f?velopment 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 fibre. It was arranged that the British Ministry of Supply would meet all production costs of linen, fibre during wartime. Implementing that undertaking, Britain had already paid £lB5 000 towards production costs, but it did not allow a sum of £106,343 for depreciation of plant and factories until March 31 last. That sum would have to be considered with capital charges, concerning which settlement was still 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 wias concerned it had been decided that seven of the present IS factories would be retained to build up a textile industry for spinning and weaving coarse and fine threads. Mr. Sullivan said a corporation would be set up and 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 Government-owned factories. All would be appointed by the Government and the corporation would be financed by the Minister of Finance.

Mr. W. S. Goosman (Opp., Waikato): Where will he get the money? Mr. W. J. Polson (Opp., Stratford): That’s what they need the Bank of New Zealand for.

Mr. Sullivan said the industrial processes subsequent tc the processing of flax would be carried on by two firms, one of which would produce and spin 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 p. small but substantial textile industry for utilisation of our linen-flax,” concluded the Minister.