“LED UP GARDEN PATH”

Southland Times, Issue 24011, 29 December 1939, Page 4

“LED UP GARDEN PATH”

NEW INDUSTRY AT DUNEDIN IMPORT LICENCES REFUSED PROMOTER TO CONSULT LAWYER ABOUT ACTION (Special to The Times) ■ DUNEDIN, December 28. “Acting on exhortations by Ministers of the Crown to establish new industries and assured by the Department of Industries and Commerce that there would be no obstacles placed in our way, we spent nearly £lOOO in the preliminary work of forming a company with a capital of £25,000 to manufacture rubber plastic in Dunedin. We were told there would be no difficulty in establishing such an industry and that we would have no trouble in securing licences for importing raw materials. Then on Christmas Eve we received advice that we could not import the goods required and that the industry could not be started. But we are not leaving the matter to rest there. When the legal holidays are over we intend consulting a solicitor with a view to ascertaining what action we should take.” This statement was made this afternoon by Mr Neil McCrae, managing director of Neil Mcßae and Company Ltd., and promoter of a new company which bears the name of Dolfite (N.Z.) Limited.

Mr Mcßae expressed surprise and indignation at the remarks made by the Minister of Industries and Commerce (the Hon. D. G. Sullivan) at Christchurch in a review of the growth of industry in the Dominion. The Minister stated that a new industry had been established in Dunedin for the manufacture of rubber flooring and mats, but it seemed strange that a few days earlier permission to start such a business had been refused by the Government. Mr Mcßae said he had sent a prepaid telegram to Mr Sullivan asking him to name the new firm, but as l yet he had not received a reply.

“ALL PROPAGANDA” “It is all propaganda for the Government," he added, “and the Minister does not seem to be stating the position accurately. Unless, of course, it was not his department that has refused us permission. “When the Government first introduced its import restrictions we saw the possibility of beginning a new industry to manufacture rubber plastics,” Mr Mcßae said. “And we have it in writing from the Department of Industries and Commerce that such an industry was not a licensed one—that is, it could be established without a licence. We were told that there would be no difficulty in securing the necessary raw material.

“We read the encouraging words of the Prime Minister (the Rt. Hon. M. J. Savage) and his colleagues urging the businessmen of New Zealand to establish new industries, and acting on all this we took the preliminary steps in forming a new company and spent close on £lOOO securing manufacturing rights and in various other ways,” continued Mr Mcßae. “Everything was in order and we it our case to the Government and asked for the necessary import licences. In spite of letters, telegrams, telephone calls and personal visits we did not receive a definite answer until Christmas Eve when we got a complete refusal. Our industry is an economic one and would be of great benefit to the country. “I cannot understand why we have been refused permission to go ahead,” he added. “It seems we have been led up the garden path and I certainly do not intend to take it lying down and will consult my lawyer to see what further action we should take.”