INVESTIGATION ?

Auckland Star, Volume LXVII, Issue 207, 2 September 1936, Page 10

INVESTIGATION ?

FORESTRY COMPANIES.

! RECOMMENDATION TO HOUSE. SUM INVESTED, £8,000,000. (Br Telegraph.—Parliamentary Reporter.) WELLINGTON, Tuesday. ' A recommendation by Mr. J. S. ; | Barton, S.M., chairman of the Bondholders' Commission, that there should ' be a thorough investigation into the operations of afforestation companies, was communicated to the House of ' Representatives to-day by the Minister of Industries and Commerce, Mr. Sullivan, while the affairs of the Whakatane Paper Mills, Limited,- were under discussion. The Minister said that in the event of a recommendation of the Industries arid Commerce Committe, that there be a further Investigation concerning the Whakatane Paper Mills, Limited, Empowering Bill, being decided upon by Parliament it was the intention of the Government to immediately appoint a tribunal to examine and report on the issues at the earliest possible moment. Mr. Barton Worried. The Minister said that Mr. Barton had waited upon him before he left New Zealand for a trip abroad and said he was worried about the operations of I afforestation companies. He urged a i thorough investigation into the activiI ties of the companies. Mr. Barton wrote subsequently saying that capital, probably exceeding £8.000,000, was invested lin afforestation companies and further capital was being sought within and without New Zealand. A large proportion of the £8,000,000 had come from abroad and the credit of New Zealand tended to be involved. Inquiries into certain aspects were being pressed for in Australia, and he thought it would be wise for the Government to anticipate a request from abroad. Officers of the Industries and Commerce Department, sakl Mr. Barton, held these I views strongly. Misleading Statements. The Minister said that Mr. Barton referred to sales in India of New Zealand afforestation bonds and said it was an urgent matter calling for legislation, as certain companies were actively pushing selling campaigns in the East based on wholly misleading statements and creating a special problem that was bound in his opinion to result in a demand for inquiry in the future. A remedy would then almost certainly oe impossible and he was anxious to prevent such practices. "Whakatane Taper Mills, Limited, was not referred to by Mr. Barton, as that company appears to have confined its sales to New Zealand and Australia," said Mr. Sullivan, "but inquiries have .reached the New Zealand. Government from overseas Governments, in response to representations from various citizens, concerning the activities of the afforestation companies of this country." Forestry Activities. After references to the Whakatane company the Minister said that it was highly desirable that there should be an independent investigation concerning the forestry activities and methods of afforestation companies to determine as far as possible what course it was desirable to follow in order to ensure the economic and commercial developments of the exotic forests of New Zealand.

"In the event of such investigation as recommended by the Industries and Commerce Committee being decided upon by Parliament," he added, "it if the intention of the Government to srive immediate effect to the recommendation and appoint a tribunal to examine an<l report on the issues mitted at the earliest possible moment."