H.—44.

•Jam-making, Fruit-canning, dc. Reports from the South indicate that a satisfactory year has been experienced. In the North, however, the season has only been moderately good. This fact, and reduced pulp and fruit imports, have caused slightly reduced production. The stone-fruit season in Otago was poor this year o.wing to the disastrous frost in September, which affected the apricot crop considerably. Biscuits and Confectionery. Manufacturers have in general experienced good trading conditions throughout the year. During the last few months biscuit-manufacturers have been engaged in production of large orders for Army requirements, this necessitating the extension of working-hours to meet the demand. Malt-extract,. With an assured market under the continued protection of the Import Control Regulations, domestic manufacturers have experienced a successful year. Matches. Production has been gradually stepped up during the year, and the establishment of an additional unit is under consideration to cope with the demand for these lines. Soap, Candles, and Starch. The output of general household lines—viz., bar soap, soap-powders, and abrasive soaps —has been steady, whilst there has been an increased demand for toilet soaps and allied toilet preparations. Both starch and candles continue to turn over moderately well ; the latter showing a slight decline. Cosmetics. There has been a continued growth in both the number of units engaged in this nidustry and in the output of existing plants. Most of the previously imported lines are now made here or replaced by domestic substitutes. Gut-manufacture. An increased output of strings is reported. Various types and grades of gut are manufactured for racquets, &c., and for musical-instrument strings. Furniture and Cabinet Making. Conditions for the year were satisfactory, although some falling off in retail sales was reported towards the end of the year. A shortage occurred in supplies of items such as moquettes, springs, and hardware, with decreasing supplies of Japanese oak, increasing quantities of Australian plywoods and local timbers are being used. Boat-building. Some firms report good business and increased turnover in commercial boats, while one firm formerly specializing in pleasure craft reports a considerable recession owing mainly to import restrictions on engines for such purposes. Considerable difficulty has been experienced in maintaining staff owing to enlistments and the keen demand for skilled craftsmen in all wood-working industries. The building of trawlers for defence purposes is causing increased activities in the larger yards. Brush and Broom Making. Active trading conditions have been experienced, most units reporting a continued growth in turnover. Difficulties in the supply of raw materials —bristles and wire—have become apparent, however. Where possible horse-hair is now being used as a substitute for the former. Canvas and Tent Manufacture. Manufacturers generally report satisfactory conditions. Although the demand for sails has diminished, tents and covers have been in good demand, especially the former. Army needs gave an impetus to this industry, and civilian requirements have been well maintained. One domestic firm which embarked on the manufacture of gaberdine raincoats at the end of 1939 reports that production of these garments has been maintained, with the strong demand experienced. Rope and Twine. Output has been maintained at the maximum level obtainable from present plant, and considerable overtime has been worked. From the South it is reported that manufacturers are able to cope with all trade offering in hard-fibre lines, but there is doubt of their ability to cope with Dominion requirements of soft fibres (counter and seaming twines and similar lines). Prospects are good. Carton and Cardboard-box Manufacture. Reports indicate that factories have been working to capacity and conditions have necessitated considerable overtime. Increased quantities of Whakatane board and corrugated board have been used in production. A special feature has been the growth of new industries requiring modern packing, and domestic factories have obtained excellent results equivalent to overseas production. The current shortage of tinplate has resulted in additional demand for cardboard containers,

2—H. 44.

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