MURUPARA FOREST SCHEME FOR NEWSPRINT TO GO AHEAD

Wanganui Chronicle, 4 November 1950, Page 6

MURUPARA FOREST SCHEME FOR NEWSPRINT TO GO AHEAD

State Will Have A Big Share In Support Of Private Enterprise

PARLIAMENT BLDGS., Last Night (P.A.)—lt was particularly gratifying that in spite of difficulties such a good sheet of newsprint had been produced from New Zealand exotie timber at the Lufkin (U.S.A.I mills, said Mr. Skinner (Opp.. Buller), in the House of Representatives this afternoon, when the vote on the estimates for forest development was under consideration.

He was speaking of tests made in connection with the Murupara project.

Mr. Skinner said that one of the difficulties experienced at the mill was that the New Zealand timber had dried out before it reached Lufkin, but the experiments had proved that newsprint could be produced from New Zealand timber as a much faster rate than from other timber. He asked whether the Government proposed to go ahead with the development of the port and railway projects in connection with the Murupara scheme. Would the forests then be handed over to private enterprise to exploit? New Zealand had a wonderiul opportunity to develop Murupara and make a great and worthwhile contribution to the sterling area, which, it was estimated, would be saved the expenditure of at least 16.000,000 dollars annually on newsprint and other products. CHANCE FOR NX NEWSPRINT. The Minister of Forests (Mr. Corbett) recalled that Mr. Doidge (Minister of External Affairs) had told the House last night that at the Commonwealth Economic Conference in London he had painted a picture of the possibilities of New Zealand's vast potential sources of newsprint and allied products, and had suggested that the project would warrant the use ot some dollar funds to enable these resources to be exploited. The firm intention of the National Party, both before and since its election to office, was that it would not embark on a complete State scheme at Murupara, as many people thought the previous Government contemplated. Some £200,000 of the taxpayers’ money had already been spent on preliminary work in the area. Mr. Corbett said it was not possible to say yet just what arrangement would be made for the Murupara undertaking. A Cabinet sub-commit-tee was meeting today to decide just what the next step should be. There had not been the progress he would have liked to see. It was true, as Mr. Skinner had said, that the forest crop was now ripe for harvest and the longer the delay the greater the problems would be. He had inherited from the previous administration an arrangement with the British firm oi Bowaters for an investigation with the hope of a subsequent agreement, and it was only after this Government had been eight or nine months in office that this firm advised that, while not questioning the soundness of the scheme, it was not prepared to negotiate on the suggested basis, which would have required it to find nearly 50 per cent, ot the capital for establishing the Murupara mill. Mr. Corbett said the present Government’s view was that the project must have some State assistance, because of its economic significance for the people as a whole, but that its capital and management must come from private enterprise. The Government was proceeding on these lines at the present time. A re-costing of the scheme had been undertaken and was nearly complete. The technical tests made were not complete but they gave a good general picture of

the possible development. The last tests were not quite satisfactory, because of the delay in shipping to Lufkin the logs from which the paper was made, hut much useful information was gathered. NO FINAL SITE YET. No final site had been fixed for the pulp and newsprint tnills. Some experts thought the Murupara site was not the best but he personally thought i it the most suitable. A decision must be made soon and whatever the site chosen it could be taken as certain that security of tenure would be provided. and that those who had to give up their land would receive a just price. Mr. Corbett said there Kad been inquiries from a number of New Zealand organisations asking for the chance to have a financial interest in the scheme, becapse of their commercial interest in it. There had been similar inquiries from overseas from firms with similar interests. "The final scheme should be ready for presentation in the near future,” said Mr. Corbett. Mr. Corbett said he spoke with some restraint because the Government was not ready to go ahead until there had been one or two more meetings of the Cabinet committee examining the scheme. No member, knowing of the State’s large interest in the Kaingaroa forest area would ask that development be so hastened that the success of the venture would be jeopardised. The first essential was to see that the development was founded ' on the right lines and the best scheme ! adopted, so that the timber crop could ' be harvested in the country’s best in* ! terests. The Deputy-Leader of the Opposi- | (ion (Mr. Nash), said that the coun- * try had a magnificent asset in Murupara, but did the attitude of the Na--1 tional Government mean that if prii vate enterprise could not make a success of the scheme then only at t’/at i point would the Government step in? MONEY’ ON ESTIMATES. The Minister of Labour (Mr. Sullivan) said that the fact that there was the sum of £200.000 on the estimates was sufficient indication of the Government’s interest in the scheme. There was no question whatever that the Murupara scheme would not go on. A committee was at present investigating the matter of a port in , the Bay of Plenty area. If the capital required for the scheme could not be found through private enterprise sources, the Government must come I into it. | Mr. Corbett said that it appeared to be well-known outside the House that the previous Government intended to turn the Murupara project into another Socialist enterprise. He had even had a deputation from members of the Labour Party asking that , the Labour Government's plans be adhered to The State intended to go into the scheme but did not intend to manage it. There was so much of the ' country's assets wrapped up in the | scheme that it was essential that the State be a partner in the closest co- . I operation with private enterprise. | The vote was passed.