PROPOSED STATE PAPER MILL

Press, Volume LXXXIV, Issue 25607, 23 September 1948, Page 4

PROPOSED STATE PAPER MILL

MR SHEAT FEARS EFFECT ON' NEWSPAPERS (P.A.) WELLINGTON, Sept. 22. If all newspapers in New Zealand were made to depend for newsprint on a State-owned mill, the country would haye arrived by an indirect method at the goal the Labour Party had long in view: State control of the newspaper press, said Mr W. A. Sheat (Opposition, Patea) in the House of Representatives to-day. Mr Sheat was discussing a reply given by the Commissioner of State Forests (Mr C. F. Skinner) to a question. Mr Skinner said the Government did not intend to introduce this session special legislation for establishing a State paper mill. A prominent North American consulting firm which had designed and built a number of the most modern sulphate-pulp mills in the pine forests of southern United States, had been engaged to report on the engineering and economic possibilities of a pulp and paper mill at Murupara, on the Rangitaiki river, in the Bay of Plenty district. Unless the company's report, which was due next month, showed the scheme to be both feasible and attractive, the Government would not proceed with it. To assist the company in making its engineering and cost estimates, arrangements had been made for quotations to be used for a British paper mill and steam and power plant equipment. While it had been necessary to arrange for the use of Swedish quotations for pulp mill equipment, supplementary quotations for such of this pulp mill equipment as could be manufactured under, licence in New Zealand. Australia, or Great Britain were being secured. If the Government did decide that the project would proceed, the extent to which any dollar funds would be used would no doubt be decided in, consultation with the British Government.

Mr Sheat said the reply indicated that the Government had already taken certain definite steps towards extending State enterprise. How much further were such Socialistic ventures to be pursued? Was it proposed to manufacture newsprint, thereby establishing State control over the supply of newsprint in this country? That was the danger in the proposal to spend £10.000.000 of taxpayers’ money on a State paper mill. The Government would presumably refuse licences for imports of newsprint, giving a monopoly to the State. This would establish State control of the press.