DENIAL GIVEN

Poverty Bay Herald, Volume LXIV, Issue 19337, 29 May 1937, Page 5

DENIAL GIVEN

MR. HAMILTON'S VERSIONS CLOSURE OF SHEEP RUN PATE OF SAWMILLS MINISTER'S EXPLANATION (Per Press Association.) WELLINGTON, this day. . Statements to the effect that a large sheep run ami four sawmills in the South Island had been obliged to close down as a result of the Government's legislation, which were made by the leader of tne Opposition, the Hon. A. Hamilton, in an address at Levin on Wednesday, were replied to by the Minister of Lands, the Hon. F. Langstone, last evening.

"It is a matter of considerable surprise to me," said Mr. Langstone, "that Mr. Hamilton, who will, not doubt, claim to be fair and just in all his dealings, should endeavour tor 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, according to a newspaper report, that as a result,ot tue Labour Government's legisaltion, a large sheep run and four sawmills ui the South Island had closod down on account of higher operating costs.

"I can give both statements a categorical denial. The lease of a pastoral run in the South Island to which he refers is still current and the sheep were sold not because of higher operating costs, but because of the accumulated losses suffered over a number of years by those financing the licensee, and of the desire of those interested to «ut their losses, while prices for sheep were ruling at a high figure.- ■ , Two Mills Closed "Mr. Hamilton is also flagrantly in error when he states that on account of higher operating costs four sawmills in tne South Island, have ceased operations. In the first place only two mills hare closed -down, but the reason had nothing to do with the operating costs, but to the 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 pressure from the committee of the Westiand sawmillers, in an effort to bludgeon the Government into granting a* higher price, notwithstanding the- fact that after fully considering operating costs, a definite figure had been agreed Upon.

"The white piue policy is one which transcends all questions of party politics, and the> misguided effort* now being made to misrepresent the attiture 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 „bv . ,the Government, m power since that time."