LABOUR LEGISLATION

Otago Daily Times, Issue 23203, 29 May 1937, Page 14

LABOUR LEGISLATION

EFFECT ON RURAL INDUSTRIES MR HAMILTON'S ALLEGATION REPLY BY MINISTER OF LANDS (Per United Press Association) WELLINGTON, May 28. Statements to the effect that a large sheep run and four sawmills in the South Island had been obliged to close down as the result of the Government's legislation, which were made by the Leader of the Opposition (Mr A. Hamilton) in an address at Levin on Wednesday, were replied to by the Minister of Lands (Mr F. Langstone) this evening.

"It is a matter of considerable surprise to me," said Mr Langstone. "that Mr Hamilton, who will no doubt claim to be fair and just in all his dealings, should endeavour for political purposes to injure the prestige of the Government by making statements which cannot be supported. In his recent address at Levin, Mr Hamilton stated that, according to a newspaper report, a result of the Labour Government's legislation a large sheep run and four sawmills in the South Island had closed down on account of higher operating costs. I can give both statements a categorical denial. The lease of the pastoral run in the South Island to which he refers is still current, and the sheep were sold, not because of the higher operating costs, but because of accumulated losses suffered over a number of years by those financing the licensee and of the desire of those interests to cut their losses while prices for sheep were ruling at a high figure. "Mr Hamilton is also flagrantly in error when he states that, on account of the higher operating costs, four sawmills in the South Island have ceased operations. In the first place, only two mills closed down, but the reason had nothing to do with operating costs, but to price arrangements for white pine delivered to the North Island for butter box purposes. The managers of the mills are not unwilling to continue at the price arranged, but they are prevented from doing so on account of the pressure from a committee of Westland sawmillers in an effort to bludgeon he Government into granting a higher price, notwithstanding the fact that, after fully considering the operating costs, a definite figure had been agreed upon. The white pine policy is one which transcends all questions of party politics, and the misguided efforts now being made to misrepresent the ttitude of the present Administration calls for the severest censure of those responsible. The present policy of white pine control was originated by Mr Hamilton's party, and has been continued by the Government in power since that time."