CLOSING OF MILLS.

Auckland Star, Volume LXVIII, Issue 126, 29 May 1937, Page 7

CLOSING OF MILLS.

minister surprised.

REPLY TO HON. A. HAMILTON.

explanation of position.

(By Telegraph.—rress Association.) WELLINGTON, this day. Statements to the effect that a large sheep run and four sawmills in the South Island had been obliged to close, down as a result of the Government's legislation, which were made by the Leader of the Opposition, the Hon. Adaan Hamilton, in an address at Levin on Wednesday, were replied to by the Minister of Lands, the Hon. F. Eiangstone, last evening. "It is a matter of considerable surprise to me," said Mr. Langstonei, "that Mr. Hamilton, who will no doubt claim to be fair and just in all his dealings, should endeavour, for political purposes, to injure the prestige of the Government by making statements which cannot be supported. In his recent address at Levin Mr. Hamilton stated, according to a newspaper report, that as a result of the Labour Government's legislation a large sheep run and four sawmills in the South Island had closed down on account of the higher operating costs. I can give both statements a categorical denial. The lease of the pastoral run in the South Island to which he refers is etill current, and the sheep were sold not because of the higher operating costs, but because of the accumulating, losses sustained over a number of years by those financing the licensee, and of the desire of those interests to cut their losses while the prices for sheep were ruling at a high figure. Mr. Hamilton is also flagrantly in error when he states that, on account of the higher operating costs, four sawmills in the South Island have ceased operations. In the first place, only two mills have closed down, but the reason had nothing to do with operating costs,! but to price arrangements for white pine delivered to the North Island for butter box purposes. The managers of the mills are not unwilling to continue at the price arranged, but they are prevented from doing so on account of pressure from a committee of Westland sawmillers in an effort to bhidgeon the Government iato granting a higher price, notwithstanding the fact that after fully considering the operating costs a definite figure had been agreed upon. The white pine poligr is one which transcends all questions .of party politics, and the misguided efforts now being made to misrepresent the attitude of the present Administration calls for the severest census© of those responsible. The present policy of white pine control was originate* by Mr. Hamilton's party, and has been <»ntinned by the Government in pearer since that time."