BOODLE'S WAYS

Maoriland Worker, Volume 13, Issue 31, 1 August 1923, Page 7

BOODLE'S WAYS

!>■ Gomnioiiwealth Woollen 1 Mis

Sacriliced to Line Fats' Pockets"",

The following is a report of the speech delivered by Labour member on a Labour motion of noconfidence in the Commonwealth House of Representatives:— "But we are of opinion that the Government is deserving of the severest censure for a grave breach of public trust in the sacrifice of the Commonwealth woollen mills at" Geelong." Mr. Scullin said: Circumstances of the sale of the woollen mills revealed the ugly fact that the Government represented the sordid interests of a financial clique against the rights of the Australian people. The Fisher Government had made provision for the establishment of the mills in 1910 because of the "grave difficulties of getting supplies of material pf good quality and at reasonable prices for the arnvy and navy. The site of the mills was presented by the Geelon'g Harbour Trust, and the Victorian Government as a gift from the people of Victoria to. he Commonwealth. The Geelong Harbour Trust had made a protest against the sale, stating that if it had known the mills were to be handed over to a private firm it would not have made the gift of land. It asked for compensation. In April, 1916, the operations had starter!, and since that day the '" total profits of the mills amounted to £190,000.

FLINDERS STREET INFLUENCE.

1 There was a proposal to extend the I mills, but when Flinders Lane secured representation in the Cabinet, nothing was done. Shortly after tho. mills were put up for sale. What mandate had the Government to sell? Were they sold because they .were producing tweed at-a low cost and actually competing against Flinders Lane, which was getting from 15/- to £lo_ the tweed put out by other Australian factories? He had obtained an expert valuation of the mills and the-figure arrived at for everything as a going concern was £400,000 without the land, yet the business was Bold for £ 155,000. Mr. Blakeley: What a tasty little morsel for private enterprise! f Mr. Scullin said the mill made a profit in the last two years of £ 103.----000 after supplying 30 to 40 per cent, of its output to the Feder.-l Departments at cost price. HIDING TRUE TA_E.#'i:lO».. One fact that had net been diseiosed. by the Government v/as .thai some time ago the Cabinet eausc-jd an Independent valuation 'of the property to be made. The valuation was mado by a reputable Melbourne firm and the value their accredited representative put upon the concern was £267,150. The Government paid-100----guineas - for ; this valuation, but carefully kept the figures in . the background. Another fact was that;ihe;: terms of the tender were that onethird deposit should be paid on completion of the contract. It would as? tonish the people to know that the deposit actually paid, instead of being •erji.GOO, was only £15,5*90, one-tenth of the contract price.. ;; If the Gov"erhment was justified in seizing-, the people's property and; selling it to. private individuals purchas-_ firs' valuation, then the' Labour Party When it got back would ue justified in mills oh. the same varuatioh # they were sold. But actually *H was a forced sale, forced by Flinders Lane. There were other aspects associated with the deal which, were opehy not only to criticism, but to , . ..., GRAVE SUSPICJION,; The sale was. .'carried .put ;by sinister methods- The Minister who had charge of the matter, Mr. Greene; actually consulted with one of the buyers while the..deal pending, and Ibid him the;, highest -tender. Mr. Greene went to, Mr. Guth£ie,, l who was ';a ; member •of syndicate, and sjippofted- the. Government, and told highest tender -received was,• £130^Q^; r ; asked Guthrie for advice, and; Guthrie .asked him not to accept the tender, but to call for fresh tenders. This advice was adopted. Guthrie was in the syndicate which finally became the purchaser. The soldiers at Jormed a company and started a mill and they were doing well, and proposed to extend their operations They therefore suggested to the Gov ernment that they should float a company of returned soldiers with a capital of £25,000 to take over the Government mills- hut they could not pay

the.money, foj: -the deposit, and asked for terms, offering their own mill aGeelong as security. .. This offer was rejected.,., ~, : -->., ~-.■ ....>-■-..,.■,• . ; WORKING THE ORACLE. The decision was that the xash do posit, must be,.one-rthird of the ...p'mjchase money. When fresh . tenders •syere called the highest, one was sign-. £d. ; by Mr., James Dyer for £150,000. Mr. Dyer asked for ,ah alteration of the terms, and-instead of paying one* third deposit that the Government should accept one-fifth. On the filu was a minute by the Prime Minister giving* authority to negotiate with Mr. Dyer, and instructions to cndeayoui to obtain an increase. If that could not be obtained to accept his terms. By private arrangement with Dyer and,the syndicate, he represented, tho Government accepted the deposit of one-tenth, the balance.to be paid in .10 (not five) years; at the rate of 5J per, cent, instead Ofv 6'-per cent. ,-...--. , • The most serious point was thai the Government did not make the alteration to the tender known to the other tenderers'. Ex-soldiers would have had no difficulty in taking dyer the miliß bnthe hew terms. If the Government had laid the proposition open it might have obtained 30 ien--derers instead of three.. . c i;.;.*/ '" Alex; Russel, a clerk in the Prime Minister's o|Qce, was a son,of Phillip Russell, a wealthy squatter, and member of the syndicate which bought the mills. The Government, said it would not compete with private.' enterprise, yet in the speech it announced its intention.to carry on the Commonwealth ships.