WORK CEASES.

Ashburton Guardian, Volume 58, Issue 303, 4 October 1938, Page 5

WORK CEASES.

CONSTRUCTION OF MILLS. FEAR OF SOCIALISATION. ASSURANCES NOT GIVEN. (Per Press Association.) ROTORUA, This Day. Owing to the failure, it is stated, of the Government to give satisfactory assurance that in the event of its,.'return at the election it will not socialise the paper pulp,lndustry)": construction of the Whakat.ane papervipills has been stopped until after the election. The whole of the gang at the paper mill, numbering 155, is being paid off to-day. Mr H. Horricks (managing director) said that an assurance had been asked for, together with, a loan of £20,000 for wages, as evidence of the 'Labour Party’s good faith. Matters had. been brought to a head, said Mr Homcks r through Australian shareholders ' flatly refusing to pay their calls until the elections were decided, many indicating that if the Labour Party, .were Returned they feared it would...confisea&o the assets.- Mr Horricks said that until late yesterday hfterhodix' he had reason to anticipate: ;shat,sie, G overnment would grant both requirements. As these had not materialised he decided- to conserve the assets' by avoiding further capital expenditure in the meantime and to review the position after the election. • ;/ “If tlio Government is sincere in its attitude that it will not socialiso the industry and is prepared to encourage the industry,” said Mr Horricks, “then the door is still open for it to comply with the company’s requests.”