“HOT AND COLD.”

Stratford Evening Post, Volume IV, Issue 224, 2 September 1936, Page 6

“HOT AND COLD.”

MR. POISON’S CRITICISM

Whakatane Paper Mills Water Supply Bill

GOVERNMENT’S ATTITUDE

Press Association —nopyright. Wellington, September 1. After the statement made by the Minister of Industries and Commerce, the Hon. D. G. Sullivan, on the Whakatana Paper Mills Ltd. Water Supply Empowering Bill in the House of Representatives this afternoon Mr. E J. Howard tGovt., Christchurch South) moved that (he report of the committee be adopted. Mr, Howard said the matter was still in the hands of the Government to say whether the company should be allowed to proceed. The company could not then proceed further until the Health Department had given it a license. If there was gome special reason why the company should not proceed it could probably be ascertained between now and the time the license was applied for. Mr. C. H. Burnett (Govt., Tauranga) claimed that the references in Mr. J. S. Barton's report did not refer to that particular company, which had converted its, bonds into a fully paid share issue, but to future issues of afforestation bonds. He outlined the steps the company had already taken regarding the development and the establishment of a paper mill and, said that now the company- had gone to tremendous expense and was about to commence, operations Parliament was going too far in stepping in.

Mr. W. J. Poison (Opp., Stratford) said the matter had been thoroughly investigated, and he believed the Health Department had no objection to issuing a license. The matter had been thoroughly discussed by Parliament, and for some hidden reason someone had said the industry should not be allowed to proceed further. He allege there had been considerable mismanagement of State forests and much money had been wasted. The State Forestry Department was in no 'position'io throw stones at that company. Either the present or the past Government had assisted the company in the way of obtaining cheap carriage of coal. The Government should not blow hot and blow cold. Mr. J. Hodgens (Govt., Palmerston North), chairman of the Industries and Commerce Committee, said the recommendation of the committee was almost unanimous. It seemet. from the evidence that if the Bill was passed further capital would at once he raised. Mr. J. G. Coates (Opp., Kaipara) said the company should be allowed to proceed with the manufacture of boxes, wall board and such products, but should not embark on huge expenditure to manufacture newsprint uritil the Government was satisfied it had possibilities. The Hon. F. Langstone, Minister of Lands, said the Government wanted to | assist industries. The Forestry Depart- I raent wanted to be a source of information, and he was surprised at the imputations that had been made against the department. Mr. W. J, Broadfoot (Opp., Waitomo) agreed that the company should be allowed to proceed on the lines suggested by Mr. Coates. The company said it would welcome an investigation into its affairs.

Mr. C. R. Petrie (Govt., Hauraki) said there was nothing in the history of the company to inspire confidence in it and to enable one to form the opinion that it could carry on economically. Mr. S. G. Holland (Opp., Christchurch North) gaid the allegations against the company came from the Forestry Department, and he felt that further investigation was needed. If the Government v/puld make investigations he was not anxious to hold up thp Bill any longer. Mr. A. G. Hultqpist (Govt., Bay of Plenty) said he could see no reason why the company should be held up, Local bodies apd the people of Whakatane approved th«e Bill, and at a belated hopr it was referred to the Industries and Commerce Committee. ’The committee sat behind closed doors and the company did not to-day know what allegations were ipade agaipst it. Until better reasons were given the House the Bill should be allowed to proceed. The company wanted to take w r ater from the Whakatane River. Had it not wanted to do that the House would never have heard of the company. Mr. J. Robertson (Govt., Masterton) said the committee’s recommendation was the only one that could be made in view of the evidence. The report was adopted.