CLOSING MILLS

New Zealand Herald, Volume LXXV, Issue 23160, 5 October 1938, Page 18

CLOSING MILLS

WHAKATANE DECISION ACTION CONDEMNED CRITICISM BY MINISTER ' - \ OBJECTION TO METHODS [BY TELEGRAPH—PHESB ASSOCIATION"] , DUNF.DIN, Tuesday "If this company imagines that-any action savouring of 'racketeering' is likely to influence the present Government, then it has made a. tremendous mistake," said the Minuter of Education, the Hon.'P. Fraser, when speaking in the Town Hall this evening on the report from Rotorua that construction on the Whakatane paper mills liacK been stopped until after the election and 155 men working at the mill were to, be paid off. The reason given in the Press Association message was that -the Government had failed to give a Satisfactory assurance that, in the event of its return at the election, it would not socialise the paper pulp industry. Mr. Fraser discussed the former disagreement between the directors of the company arid the Minister of Finance, the Hon. W. Nash, arid said this announcement appeared to be an attempt to force the Government into giving financial assistance, but added that the directors "may as well know now that it is a tremendous mistake." ~

. Hot First Time , Tho Minister! said lie had just read in the evening paper <1 messnge from which it appeared that the Whakatane pulp mills wore being closed down. lhis was not the first timo this had happened. In fact, it Mas becoming almost a habit for that company to close down when on awkward situation arose. "What I can read of this trouble so far reminds 1110 that some time ago representatives of this company waited upon the Minister of Finance to ask for financial assistance," he continued. "They were told by Mr. Nash that he could not agree to advance the money asked for because it would first be necessary to have a full inquiry made into the financial position and history and prospects of the company. Mr. Kasli decided that it would take some time to make the required investigation. . , "Apparently because the Minister was not prepared to spring forward with the money in both hands a number of men was put off. That was four or five months ago. Therefore J. km not surprised to "read of the repetition of that process, this time on the eve of the election, with the obvious intention? of forcing • the Government into giving financial assistance to the company. I' Company's Position "The Government is not going to do that sort of thing on the eve of the election or'any other time," Mr. Fraser emphasised. "It would be wrong for, any Government to give money to any concern' without first - making the fullest inquiry into tho affairs and prospects of that concern. I do not know the full details of the latest development, .but, I know that the Government would have beert prepared to make a minute inquiry into the position of this Company to find ' whether it is sound and comprises the begininipg of a valuable economic industry, but if the, company .imagines that any action savouring... of, racketeering is likely to influence - the - Government, then it has made a tremendous mistake, and the directors mighty as well know that" now." -- "" Go-operation Urged

' Mr. Fraser said the whole thing was utterly ridiculous/ The company would do much better' if it wanted assistance •J by co-operating with the Government, j It was to be deplored that any private concern or public body would do anything else on the eve of the election than its utmost" to keep men in employment. ir ' . • At a time such as this there was naturally a certain lack of full cohesion in departmental work, and there was nothing to be gained by creating awkward situations. He had no doubt' that something could be' done' to help the men who were losing their work at the Whakatane mills. .

NO UNEMPLOYMENT ' 'statement repeated CONDITIONS' OF WORKERS ' • [BT TELZGBAPH^—PBESS -ASSOCIATION] • ■ '>, WELLINGTON, Tuesday "There is no unemployment in New Zealand to-day so far as physically, fit men and women are concerned, and if you can tell me of anybpdy out of a job. and able to work I will place, them in employment under award wages in 24 hdurs," declared the Minister of the Hon. H. T. Armstrong, at a meeting held at a public works camp near Wellingtonto-night. Mr. Armstrong,/ who was well received, declared that the Labour Government had not brought about the ruin in New Zealand that was predicted when-the party wae returned to power. The Government had demonstrated that it was possible to bring about improvements in the conditions of the working people without ruining business. l ' . , During the past two years, Mr. Armstrong adde.fl, wages in New Zealand had increased by £13,000,000 each year and the incomes of otliter people had increased in like proportion.

NO SOCIALISATION HON. W. LEE MARTIN'S VIEW NOT LAND OR ANYTHING ELSE [lir TELEGRAPH —PRESS ASSOCIATION") NEW PLYMOUTH. Tuesday A further denial; that the . Labour Party intended to' socialise land wa> given by the Mjmster. of Agriculture, the Hon. W/ Leo Martin, in an address at Inglewood to-night. There were few interruptions, and' no questions were asked. A vote of confidence in the Government and the Prijne Minister, Mrv Savage, was carried. , The National Party, said the Minister, was trying to secure 1 votes by- reviving the bogey of socialism. "They say we are going to socialise land ancl everything else,- he added. "What a lot of humbug. During tho last two years wo gave over--/42 freehold titles. Does that seem like the action |of a Government out to socialise land?" £ There had never been a single,; suggestion that the Government; would socialise land or anything else. "I am a farmer,'' he continued. "Would I not be a fool if I supported a scheme to take land away from myself P What would any Government do with land if it had it? Who going to work the land? is it not far better for tho fax*mers to run their;own farms?" ' i The speaker maintained that Mr. C. A. M.P.. for Egmont, was the only man in New Zealand who had put forward. $ proposal to socialise land.