NEW PAPER MILL

Timaru Herald, Volume CXLII, Issue 20512, 2 September 1936, Page 12

NEW PAPER MILL

ESTABLISHMENT HELD UP MATTER DISCUSSED IN HOUSE By Telegraph—Press Association WELLINGTON, September 1 The matter- of the Whakatane Paper Mills Ltd. Water Supply Empowering Bill was further considered in the House to-day when Mr E. J. Howard moved that the 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 some special reason why the company should not proceed, it could probably be ascertained between now and the time a license was applied for. The Hon. D. G. Sullivan read a statement containing the recommendations of Mr J. S. Barton (reported elsewhere). Mr C. H. Burnett (Lab., Tauranga), claimed that references in Mr 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 establishment of a paper mill and said that now that the company had gone to tremendous expense and was about to commence operations. Parliament was going too far in stepping in at that stage. “ Some Hidden Reason ” Mr W. J. Polson (Nat., Stratford), said the matter had been thoroughly investigated and he believed the Health Department had no objection to issuing a license. Tire matter had been thoroughly discussed by Parliament, and for some hidden reason someone had said that the industry should not be allowed to proceed. He alleged that there had been considerable mismanagement of the State forests and much money had been wasted. The

State Forestry Department was in no position to throw stones at that company. Either the present or the past Government had assisted the company in the way of obtaining the cheap carriage of coal. The Government should not blow hot and blow cold. Mr J. Hodgens, chairman of the Industries and Commerce Committee, said the recommendation of the committee was almost unanimous.. It seemed from the evidence that if the Bill passed further capital would at once be raised. The Rt. Hon. J. G. Coates said the company should be allowed to proceed with the manufacture of boxes, wall board and such products, but should not embark on a huge expenditure to manufacture newsprint until the Government was satisfied that it had possibilities. Mr W. J. Broadfoot (Nat., 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 (Lab.. Hauraki) said there was nothing in the history of the company to inspire confidence in it, and to form an opinion that it could carry on economically. Mr S. G. Holland (Nat., Christchurch North) said the allegations against the company came from the Forestry Department, and he felt that a further investigation was needed. He was not anxious to hold up the Bill any longer. The Company’s Position Mr A. G. Multquist (Nat., Bay of Plenty) said he could see no reason why the company should be held up. The local bodies and people of Whakatane approved the Bill, and at a belated hour 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 made against it. Until better reasons were given the House the Bill should be allowed to proceed. The company wanted to take water from the Whakatane River. Had it not wanted to do that the House would never have heard of the company. Mr J. Robertson (Lab., Masterton) said the committee’s recommendation was the only one that could be made in view of the evidence. The report was adopted.