Whakatane Paper Mills Halt

Northern Advocate, 4 October 1938, Page 8

Whakatane Paper Mills Halt

f Special to ”Nortnern Advocate.’“l WHAKATANE, This Day.

The managing director of the Whakatane Paper Mills announced yesterday that he was stopping construction until after the election. The whole of the gang at the mills, numbering 156, arc being paid off today. The managing director, Mr H. A. Horrocks, said that an assurance that the industry would not be socialised had been asked for, together with a loan of £20,000 for wages, as evidence of the Labour Party’s good faith. He said that matters had been brought to a head through the Australian shareholders flatly refusing to pay their calls until the elections are decided.

Waiting for the Election

Mr Horrocks stated that until late yesterday afternoon he had every reason to anticipate that the Government would grant both requirements, but as those had not materialised, he had decided to conserve the company's assets by avoiding further capital expenditure in the meantime, and io review the position after the election results were known. Mr Horrocks added that the company could call on over £50,000 of share capital in Australia, but he was not prepared to advise the Australian board to invest their funds in the Dominion until the present unsatisfactory position had been determined.