H.—44.

Brief resumes of the principal action which has been taken during the year in regard to the more important of the licensed industries are set out hereunder . Flax (Phormium Tenax). The Committee now consists of the following members : — Government Nominees : E. J. Fawcett (Chairman), Department of Agriculture , 11.I 1 . Johnson, Department of Industries and Commerce ; F. R. Callaghan, Department of Scientific and Industrial Research ; P. T. Robinson, Public Works Department, Moutoa. Representing Flax-millers: R. Macdonald, Waikuku; L. A. Niederer, Gorge Road; D. R. Ogilvy, Foxton. Representing Manufacturers: F. W. Vickerman, New Zealand Woolpack and lextues, Ltd., Foxton. Workers' Representative: H. H. Podmore, Foxton. Messrs. A. H. Long and B. B. Wood, millers' representatives, who resigned, were replaced by Messrs. Macdonald. and Ogilvy. Seven meetings of the Committee have been held during the year. In June, 1940, the Committee arranged for a conference at Invercargill between the Southland flaxmillers and representatives of the rope and twine manufacturers, with the result that arrangements were made for the local disposal at satisfactory prices of all high-grade fibre and most of the low-grade fibre produced in Southland. • , „ , , The acquisition of the Moutoa Estate, near Foxton, by the Government for development as a flax plantation was finalized in September, and throughout the year extensive development work was carried on under the supervision of the Public Works Department. A special Moutoa Development Committee, representative of the Flax Plan Industrial Committee, New Zealand Woolpack and Textiles, Ltd., and the Public Works, Agriculture, Scientific and Industrial Research, and Industries and Commerce Departments, has been set up to give direction to the work. The botanical investigations have been continued, but, as the area formerly occupied on the Moutoa Estate has now been fully planted, an additional area, in the Paiaki Block of the estate has been set aside for tne purpose. Sufficient space will be available for an extension of this work. Several new Sutton strippers are being installed in the stripping-mill at Foxton, acquired during the year by the Government, in order that the performance of these machines under commercial conditions may be tested. Experiments are being made with the aim of improving the flax-washers. Investigations of flax areas throughout the Dominion have been made, and a detailed survey of areas on the West Coast has been authorized with a view to the utilization of flax in these areas '' principal work in the development of the flax industry is now centred in Foxton, where the Government has extensive interests in the woolpack industry. Pharmacy. In addition to the normal activities of the Committee carried out during the year, a goodwill advertising campaign was undertaken. The campaign covered a period of six months. Its main purpose was to inform the public of the fact that a chemist's dispensing service forms only a minor proportion of his total turnover necessary to keep the pharmacy in operation, and that in order to maintain the dispensing and general emergency services, particularly in suburban and country places, public support is urged in respect of the business in general household drugs and medicines, toilet articles, and chemists' sundries. The campaign was found to be well worth while, and its resumption in the succeeding year is being, considered. , , , , , . . War services have created a considerable strain on pharmacy personnel, and there is a distinct shortage of staff for normal work apart from relieving work. Steps have been taken, in conjunction with the appropriate authorities, to ensure that further trained men are not accepted for service except in a capacity in which their training will be utilized. Since pharmacy was gazetted a licensed industry steady progress has been made m the elimination of redundant pharmacy units along the lines indicated in the pharmacy plan. With voluntary closures, amalgamations, and absorption of adjacent units, the number of units has been reduced by thirty-six, spread very evenly over the Dominion on a population basis. Two new licenses have been granted in previously undeveloped or unserviced areas. Sale of Motor-spirits. For the year ending 31st December, 1940, applications to the Bureau under the provisions of the Industrial Efficiency Motor-spirits Licensing Regulations totalled only 450, as compared with 700 received during 1939, 900 during 1938, and 1,800 in 1937. This falling-off is, of course, due to the restrictions in the consumption of motor-spirits imposed under the Emergency Regulations. It is significant that applications for transfers (193) account for 43 per cent, of the total applications. The average in previous years has been 23 per cent. Very few applications to open new reselling-points were received,, but applications to extend operations by reselling in drums amounted to 84. Fifty-three licenses were surrendered or revoked by the Bureau. Wholesale sales —that is, sales by importers to resellers and commercial users —dropped 20 per cent, on the 1939 total. The same percentage drop would apply substantially to retail sales taken as a whole, but the drop has not spread evenly over all sections of the country. From returns received there appears to be no doubt that legitimate resellers, as such, have suffered a far greater loss than the general average. This applies more especially to town districts. On the other hand, organizations dealing directly with the farming community seem to have fared very well. In some cases increases in sales have taken place. It will be safe to say, therefore, that city areas have suffered a far greater cut relatively than the country districts.

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