AUSTRALIA’S CEMENT SUPPLY

Grey River Argus, 11 September 1948, Page 5

AUSTRALIA’S CEMENT SUPPLY

FEDERAL OPPOSITION M.P. MAKES CHARGES AGAINST MINISTERS CANBERRA, Sept 10. Charging the Prime Minister, Mr J. B. Chiiley, with having personally allocated 1,189,110 dollars to Metropolitan Cement, Ltd., for the purchase of a cement-making plant in America when the company lacked the assets to balance against the dollars, Mr J. P. Abbott (Country Party) called for an inquiry by a High Court Judge, acting as a Royal Commission, into the flotation of Metropolitan Portland Cement Ltd. and Metropolitan Cement Ltd. Mr Abbott also made charges in the House of Representatives against the Minster of Post-War Reconstruction Mr J. J. Dedman, and the Minister of Trade and Customs, Senator B. Courtice. Mr Abbott said the matters he would raise must give rise to the deepest suspicion that Ministers had acted regardless of .their oath of office. He said he would charge the Prime Minister with having personally brought about the approval of the Capital Issues Board to the issue of 800,000 shares in Metropolitan Portland Cement Ltd and with having influenced the board to agree to writing up the shares of Metropolitan Cement Limited to very inflated values. Mr Abbott claimed that Mr Chiffley had misled Parliament, in his replies to questions, in giving information about cement production as an excuse for the allocation of dollars. In many of these matters Mr Dedman and Mr Courtice aided and abeted Mi’ Chifley. MISLEADING CLAIMED

He charged that Mr Chifley had misled the House about the capacity of Australia’s present cement-making •plant and the capacity of the plant for which tenders had been called. He quoted figures which he • claimed showed the capacity of the existing plant exceeded the record sales of last year by 421,000 tons and that, excluding Metropolitan Portland Cement Ltd., orders, plant to produce 310,000 tons year was on order. Metropolitan Portland Cement Ltd haid paid-up capital of £1,050,000 and had freight advantages from the New South Wales Government over other limestone consumers amounting to about £lOO,OOO yearly. Metropolitan Cement Ltd had a nominal capital of £200,000 and paid-up capital of £87,508, of which only £5OB had been in cash. Mr Dedman said that everything in the matter was above board and that there was no suggestion of bribery or corruption by any Commonwealth official or Minister. Mr Dedman said he could assure the House from a perusal of the Treasury documents, that there was little truth in Mr Abbott’s claims. It was the chairman of the Capital Issues Authority who hdd recommended the writing up of the shares. Prime Minister’s Surprise at Allegation (Rec. 9.55) CANBERRA, Sept. 10 When the Federal House of Representatives resumed to-day the Leadex of the Country Party, Mr Fadden, asked that the Government should appoint a Royal Commission to inquire into the matter of the allocation or over a million dollars in currency to the Metropolitan Portland Cement Coy., Limited to buy new plant in the United States. • The Prime Minister, Right Hon. J. B Chifley, flatly refused the demand. Mr Chifley at the same time offered to let the Leader of the Country Party, Mr Fadden,'and also the acting Opposition Leader, Mr Harrison, examine the complete file on the matter. . Mr Fadden said that he was not prepared to accept the repsonsibihty of a Royal Commissioner. Mr Chifley, in replying to demands, added that he was surprised at the allegations of malpractice that had been made. He said that if someone might represent some vested interest, it did not deny him the right of interviewing the Prime Minister, or the newespapers fox’ instance. Cement Coy. Unafraid Of Inquiry—-What About Combine ? (Received September 10, 10.40 p.ni.) SYDNEY, September 10. In Sydney to-day, the Chairman of Directors of the Metropolitan Portland Cement coy. Ltd., Mr. J. 1. Wilton, said, that his company would welcome a Royal Commission into the charges that were made in the Federal Parliament by Mr. Abbott. Mr. Wilton added that such an inquiry would be particularly welcome if it included an investigation into the operations of the cement combine and its secret fund. , He stated that the dollar allocation made to the Metropolitan Cement Coy. Limited to buy equipment in the United States had been eauivalent to four hundred thousand pounds Australian, of which half had been paid in cash.