PAPER MILLS PLAN

New Zealand Herald, Volume LXXIII, Issue 22431, 29 May 1936, Page 13

PAPER MILLS PLAN

CRITICISM IN HOUSE REPLY BY COMPANY SURPRISE AT COMMENTS FULL EVIDENCE OFFERED In connection with the discussion in the House of Representatives on Wednesday upon the Whakatane Paper Mills, Limited, Water Supply Empowering Bill, the New Zealand secretary of the company, Air. E. B. Brown, made the following statement yesterday:— " It conies as a surprise to those interested in the bill to learn of the opposition and criticism expressed at its third reading, as, although the bill has been advertised, no opposition from the parties interested or likely to bo affected thereby has been forthcoming up to the present juncture; rather, the parties concerned have expressed themselves as being in sj'mpathy with the objects of the bill. " The private bill before the House is intended to confer upon the company statutory authority to draw water (for use in the manufacturing processes of its proposed pulp and paper mills) from the Whakatane River at a point not less than one and a-half chains below the Whakatane Borough's intake. In addition, the company seeks statutory power to lay a pipe-line from the point of intake to its mill site, approximately three miles nearer the mouth of the river. Authorities fully Consulted " The bill also provides that plans of the proposed pipe-line upon any public road must be approved by the local authority before any work is commenced, and the work when commenced is to be under the supervision of the local authority. The company, prior to to the bill being referred to the Committee of Selection, had secured all essential easements over private property through which the pipe-line must pass. ~ _

"It may not be generally known that all Government departments which may be interested in any way in a private bill are entitled to appear before the Committee of Selection on the bill and to make their representations in support of or against the bill. The company, in the present instance, took steps to confer with the departments interested, also the local bodies concerned, with the result that tho bill, when introduced the House, and, at its. second referred to the Committee of Selection, .actually incorporated the requirements of tho departments concerned.

Offer to Committee

" The company's solicitor appeared before the Committee of Selection, and on behalf of the company, offered to submit evidence of the company's financial ability to carry out its proposals relating to the immediate establish-, ment of the woodpulping and paper and board-making industries. The chairman of the committee intimated, however, that such evidence would be unnecessary. " The company has already given evidence before the Commission of Inquiry, presided over by Mr. J. S. Barton, S.M., into company methods, 'and has also supplied information regarding its proposals to the Bureau of Industry.

" The company is quite prepared to place before the Industries and Commerce Committee of the House evidence of its financial position and its ability to carry out its present proposals, which envisage the expenditure of £350,000 on the first section of its mills (£70,000 in building's and £280,000 in equipment). " The managing director, Mr. H. A. Horrocks, and the company's engineer, Mr. L. A. DeGuere, are at present abroad for the express purpose of finalising the equipment contracts, and these • contracts can be let immediately the matters at present before the Government are approved. The establishment of the industry at Whakatane will provide employment for approximately 300 employees."