PAPER INDUSTRY DECONTROLLED

Press, Volume XCIX, Issue 29250, 7 July 1960, Page 12

PAPER INDUSTRY DECONTROLLED

No Bar Now To Pulp Mill In Canterbury (from Our Parliamentary Reporter) WELLINGTON, July 6 The Government tomorrow will end the licensing of industry in New Zealand. An* nouncing this surprise move to the House of Representatives tonight, the Minister of Industries and Commerce (Mr Holloway) said notices gazetted tomorrow would abolish “the last physical restrictions on industry in this country.” Only three industries are still licensed—-motor-tyre production, pulp and paper and allied manufacture, and the conversion of paua shell into jewellery. . Mr Holloway’s announcement removes the last barrier to the establishment of a pulp and paper industry in Canterbury and the decision to start a £6 million pulp and paper industry there is in the hands of the company Which originally proposed the project—New Zealand Forest Products, Ltd. Forest Products’ Chairman, Sir David Henry, conceived the idea of utilising the thinnings and non-millable cuttings from Canterbury’s State and private plantations for the establishment of a new enterprise which Would be non-competitive with the newsprintproducing Tasman Pulp and Paper Company. Mr Holloway’s announcement also leaves the way open for another pulp and paper project in Nelson. This project based on the timber holdings of H. Baigent and Sons, Ltd., was considered in some quarters to be highly competitive with the Canterbury proposal.

The Government’s decision means that from those organisations instrumental in establishing a pulp and paper industry there will now be no need to await the completion of the survey of South Island timber resources now being undertaken by the New Zealand Forest Service. Forest service officers, notably the Director of Forests (Mr A. R. Entrican), opposed the Canterbury project, and, indeed, any other in the South Island until the continuity of supply in the South Island could be guaranteed without complete reliance on State plantations and without in-, terference to sawmillers., Mr Holloway said that some interests in the pulp and paper trade might object, others had signified they were already In favour. The Government had decided that this industry was now capable of looking after itself. The move should better the export potential. Motor-tyre production was largely concentrated with three big firms. There was no reason why there should not now be competition with smaller units.

Paua shell conversion into jewellery - had been instituted mainly to protect returned ser-

vicemen engaged in this trade. There was no further need for its continuance.

“It is no job for the Government,” said Mr Holloway, “to continue licensing to protect .industry when the effect is to restrict other units Which could be productive. “This Government cannot be accused 'of fostering controls which hamper industry. In recnt years there has been more industrial development than ever before in the history Of this country. I believe there is a need for an even greater tempo over the next 10 years.”

Mr Holloway i ecalled that licensing of industry had been instituted after the depression to protect small investors and create confidence in those offering capital. ' Mr Holloway argued a cause for rail freight concessions to encourage industrial diversification. “There is a possibility of Using rail-freight concessions for transport of goods to consumer markets, especially since the Government owns the railways.” he said. Freight concessions could make all the difference in the siting of an industry in, say. Auckland or New Plymouth. “This would lose the railways nothing. They would gain because of the extra haulage.”