MURUPARA PULP SCHEME

Press, Volume XC, Issue 27408, 22 July 1954, Page 12

MURUPARA PULP SCHEME

MR HOLLAND OPENS DEBATE

EARNINGS OF £7,500,000 A YEAR EXPECTED

(New Zealand Press Association) WELLINGTON, July 21. The Murupapa pulp and paper project would earn £7,500,000 a year, said the Prime Minister (Mr Holland) tonight, opening a debate in the House of Representatives on this £28,000,000 enterprise built around some hundreds of thousands of acres of exotic forest. The project, he said, would save dollar expenditure at the rate of 16,000,000 a year.

The Prime Minister said the first five years’ output had already been sold at a price to return interest, amortisation payments, and profit. In this State-private enterprise venture Sir James Fletcher and his associates had put £700,000 and the Government £1,006,000, and the Government had also advanced money required by the company at a charge of 4 per cent., said Mr Holland. It had done this, he said, because the Government wanted the enterprise established so that when shares were sold they would sell at market value. “I think it is no secret to say we shall be able to sell these shares at a premium even before they are ready for issue,” he said.

Australian and New Zealand newspaper interest had decided not to come in with capital, Mr Holland said. Already amazing progress had been made, and by this time next year the plant would reach a certain stage of production. It was an industry that could compete with the world. The cost of the plant would reach £150,000.000. Government works would cost £13,000,000, and the yearly power consumption would be equal to onefifth of the output of Maraetai power station, continued Mr Holland. “This country is. just leaping ahead, and this industry is destined to bring prosperity to the land,” said Mr Holland. The Deputy-Leader of the Opposition (Mr C. F. Skinner) said the project would become one of the greatest industries in the country, and he predicted there would eventually be more than one integrated plant established. The Minister of Forests (Mr E. B. Corbett) said the firm estimate of cost was £28,000,000, and he did not think this figure would be exceeded. He said that shortage of labour wouldmean that the sawmill would not be operating till about the same time the newsprint production was under wav—late next year. The Leader of the Opposition (Mr Nash) criticised the Government decision to borrow from Britain and particularly from the United States to help to finance the project. He believed the country held surplus reserves that would have made borrowing unnecessary. The Minister of Works (Mr W. S. Goosman) said that the use of geothermal steam to provide power for the industry would make it unique. Tests that had been made at Kawerau showed them to be comparable with the tests of similar bores at Walrakei. Mr Goosman said .he would not be surprised if other industries allied to the pulp an 4 papermaking project became established at Kawerau to take advantage of the geothermal steam supplies. The debate will be continued tomorrow afternoon.