Establishing a New Industry

Bay of Plenty Beacon, Volume 6, Issue 49, 19 February 1943, Page 5

Establishing a New Industry

On the occasion of the Hon. Dv G. Sullivan's visit to The Whakatane Paper Mills lasrt Monday, he was accompanied by Mr Jackson, Director of Production, and Mr Middleton, Private "Secretary. Mr W. Sullivan, M.P., accompanied the Minister to the Mill. t Messrs Mackley, Corbin and Crimp, Directors of the Compam r , together with Mr Brown, Manager, and Mr Frastad, Mill Superintendent, onet the Minister and his party on • arrival, and after morning tea ac- ■ companied them on a tour of inspection of '>Wie plant. The Minister was intensely interested in every phase of production • and after spelling some three hours -in looking over the Mill was the -guest of the Company at lunch. After lunch, Mr Macklcy on behalf of. the Directprsi, Management and Employees of the Mill and the 12,000 Shareholders of the Company, thanked the Minister for the interest he hadj displayed in his visit and for 'the time he. had devoted to this purpose. Mr Mackley also thanked Mr W. Sullivan, M.P., for accompanying the Minister on his visit •of inspection and for giving so -jnuch of his time to the occasion. > Review of Progress The. following brief outline of thr» -"Company's ,activities and future intentions was presented, to the Min--4 ister by' Mr Mackley:— "On behalf of ithe Directors, Management and Employees of The Whakatane Paper Mills Limited, and the 12,000 Shareholders of the Companj r , I desire to thank you for your courtesy in visiting us to-dav and affording us the opportunity of showing you something of the progress and development that has taken place in our. industry since your lasfc visit some three years or .more ago. As you know, we were unfortunate enough to lose our late jYlanaging Director, Mr H. A. Horrocks, avlio died last July, and to whose foresight and industry we • owe not only the Mill as you originally saw it,, but as you see it. today with all itsi additions, and improvements, "You will remember something of the controversy that was fostered hy some interested parties! as to the desirability of establishing' our pulp - andj paper mills in New Zealand when the Bill affording the Company certain water rights was before the Parliament," said Mr Mackley. "That the prognostications of those who did not adoptl a friendly attitude towards our application were 1 based on erroneous grounds will be evident from what you have seen to-day and from the record of the Company's production since we • commenced operations. 14,000 Tons This Year "The following figures will, no doubt, interest you: We comment ed production in Ju'.y 1939 and for the 5% months of thait: calendar . year produced 2,976 tons of cardboard . For the following calendar year to December 31, 1940, we produced 8,014 tons. In 1941 our output increased to 10,360 tonsi. In 1942 our production increased still further to 13,400 tons. This year we hope to reach a figure of approximately 14,000 tons. "These steady increases in our annual - output have been brought about despite the difficulties due to war conditions and the circumstan- • ces of New Zealand's manpower problem from which all:, industries are inevitably and uncomplainingly suffering. "These circumstances too, have > unfortunately delayed our programme of further development ' along the lines originally contemplated and made known in our several rei ports to shareholders and ollhers throughout the years since the establishment of the Company. Overseas Assistance "Offers of co-operation from overseas on a mutually satisfactory basis have been held in abeyance pending the cessation of the world conflict but as soon as the time is propyl- • ous we are prepared to finalise, these arrangements along lines that we

The Whakatane Paper Mills HON. D. G. SULLIVAN'S VISIT VITAL TO DOMINION'S WAR EFFORT

feci will be as satisfactory to New Zealand's national interests as is the existence of our present cardboard mill," said. Mr Macklcy. "At this stage it. may not be oiVt of pliace to refer to the fact that. Whakatane Paper Mills Limited for the first time in the -world pioneered in a practical way and demonstrated beyond doubt that Pinus Insignus could'be satisfactorily utilised in a commercial Avay for the manufacture of cardboard and newsprint, ited for the first time in the world pioneered in a practical way and demonstrated beyond doubt that Pinus Insignus could be satisfactorily Utilised in a commercial way for the manufacture of cardboard and newsprint. "For this, credit is due to the practical and expert knowledge possessed by our Mill Superintendent and his assistants who are the only men possessing this special practical knowledge gained "in the hard school ✓of experience at our own Mill and at the sole cost of (the Company. Provision for Expansioh "The present facilities and equipment owned by Whakatane Paper Mills Ltd form the basis of a ready expansion into the field of Chemical Pulp, Newsprint and Paper generally. Our power house was also planned and laid out with these extensions in view. There are other factors equally important possessed in our present site for large scale expansion of 'the kind mentioned and it was because of those future acquirements and- possibilities that the existing site was selected. Serving; Defence Purposes "It will no doubt interest you to learn, Sir," continued Mr Mackley, "that apart from numerous essential industries dependent upon Whakatane's prodtict, we also play some part in meeting the Defence requirements of the country insofar as Whakatane cardboard is used in the manufacture of munitions of ■war and the packing of overseas defence requirements, as well as other important commodities. A comprehensive list of the industries dependent upon us for supplies is attached for your information. "Apart from these features the Company's product has also played an important part in the conservation of Sterling funds particularly at a time when it was perhaps more important to tthe National economy that it may be to-day. Equally important lias been the substantial saving in overseas shipping space brought about bj r the manufacture of cardboard in New Zealand. This saving amounts to approximately S5 per cent, and will, this year, equal l approximately 15,000 ,shipping tons. Some Remarkable Figures "Some other aspects of National importance associated .with the Company's industry arc tabulated for your information. Based on pre-sent-day production:— (1) The Company's annual wages and salary bill is £100,000. (2) The Company's annual coal bill is £33,000. (3) The Company's annual railway freight account is £75,000. (4) The Company employs approximately 290 persons. (5) The Company utilisesi 5,000 tons of waste, paper annually. "With fthese 1 facts before you, and from what you have seen here today, plus: the valuable asset represented) by our adjacent forests, we feel that you have seen an industry which must rank high in your estimation of Whakatane Paper Mills Limited as a secondary industry of great National importance and possibilities. Praise for Officers' "Its steady improvement in general all round efficiency, despite, the difficulties already referred to, reflects great credit on the Mill Superintendent and his assistants and encourages a feeling of. healthy optimism for the future, the success of which we trust will be enjoyed by everj&ody associated wifth the industry ancl New Zealand people in general. * "The industry you have kindly

given so much time to to-day, which we trust has been spent pleasantly, and which we hope will be of assistance. to* you, is a secondary industry of unique interest inasmuch as it is super imposed, and largely dependent upon a primary industry of almost equal importance, the utilisation of our exotic forests grown on otherwise unproductive land. "At the moment approximately 66 per cent, of the raw materials used in the manufacture of cardboard come from our own forests and' with the establilslvment of our own Chemical Pulp plant, this percentage may well be increased to 88 per cent, which with wasite paper, will make the industry almost entirely independent of overseas supplies of raw materials. Co-operation Appreciated "We thank you for the interest you have displayed in our industry by visiting us to-day and in advance for the interest Ave feel' sure you will continue to take in our progress. We trust, that what you have seen and what. 3*ou have, heard has pleased you and that in due course you will again do us the honour of paying the Mill another visit and more particularly on that occasion when our nex't. unit is ready for production. "In, conclusion, Sir, may we also thank you as Minister of Supply, for the helpful assistance your Department has rendered us during these difficult. d ; ays and if we may, without, drawing invidious distinctions, refer to some of your officers. I'n particular may we mention. Mr Pascoe as Factory Controller, and Mr Prendergast, a Sub-Controller of Paper Pulp and; Building Materials. "Indeed, Sir, we have received wonderful help and assistance from all Departmental Officers with whom we have come, in contact and their invariable courtesy is mush appreciated." Minister's Reply. The Minister in reply thanked Mr Mackley for the hospitality extended to him and his party by the Company and for the. opportunity of looking over the plant. The visit, Mr Sullivan stated, was most inspiring and encouraging and he thanked all associated with the enterprise for their splendid Avar effort. He congratulated all concerned, on the. efficiency of the plant and the splendid manner in whi-eh it Ayas being looked after. Not only had the Compan3 r taken eare of the normal requirements of New Zealand's; cardboard users but what was equally important, .it. had taken care of the abnormal demand created by AA r ar conditions, said the Minister: Amazed at Production Figures Not less important, said Mr Sullivan, Avas Mr Mack ley's' reference l to the part played by Whakatane Paper Mills as it affected Ncav Zealand's National economy. The figures were truly amazing and indicated clearly the A*alue of Secondary Industries to the country, the establishment of which he .had enthusiastically advocated inside and outside of Parliament long before he became a Cabinet Minister. After referring to the effect of the annual wages bill of £100,000 and the. annual coal bill of £33,000 011 the life of the community, Mr Sullivan stated lie well remembered!, Avhen Minister of Rai ; hvays, as; Mr Mackley would, the annual operating loss on the East Coasfc railway. The £75,000 of raihvay freight noAV derived from Whakatane would, lie a Avelcome contribution to the operating revenue of the East Coast line. Conserving Shipping Space Then too, emphasised the Minister, was the important factor of the saving in shipping space referred to* by Mr Mackley. Everybody would appreciate the great importance of this at a time Avlien the saving ,of every ton of shipping space made iits contribution toAvards pur war effort. "Whakatane,concluded the Minister, "has come through itsi trials and 1 tribulations successfully and nobody is more pleased' than I am as Minister of Supply that it is with us to-dlay. I am especially gratified l at your reference to the helpful assistance rendered by my Departmental Officers and! to the good relationships' that evidently exist between you. This is what the Government would wish to be the case more especially these days when every industry is experiencing' the problems of supply that must inevitably arise during the period' of war such as has never before been experienced.®'