Local Paper Mills A National Asset

Bay of Plenty Beacon, Volume 12, Issue 17, 30 January 1948, Page 5

Local Paper Mills A National Asset

Here are a few facts that illustrate clearly the importance of the Whakatane Paper Mills to New Zealand as well as to this district: —

The Company commenced manufacture of cardboard for sale on July 16, 1939—just six weeks before war broke out. Up to that time piflius insignijs had never been used commercially in the manufacture of cardboard or paper anywhere in the world. Over the past eight years the Company has—(a) Become well established; (b) Reached an economic stage of production; (c) Attained a high degree of efficiency; (d) Standardised the quality of its products; (e) Successfully met competition from overseas—without any Tariff Protection whatever.

The Company has fulfilled its wartime obligations and has more than proved its economic value to New Zealand as the following figures show:—(a) It has saved in Exchange around £2,850,000 sterling, (b) It saved in vital shipping space 150,000 shipping tons, (c) It paid in railway freights £272,126. (d) It paid for coal over £187,589 (not including freight), (e) It paid in wages £926,916. (f) It contributed directly in taxes £242,567 (including provision for 1946-47). (g) It has provided continuous direct employment under excellent working conditions for an average of 280 persons, (h) It has utilised approximately 90 per cent of N.Z. raw materials, including 10 million feet per annum of pulpwood timber. Whakatane Paper Mills Ltd. has kept the wheels of industry turning wherever cardboard is used. It has provided necessary material used in some way in almost every industry.

But for the establishment of the Mill, six weeks before war broke out, New Zealand, like every other member of the United Nations, would have had to be content during the war with' 15 per cent to 30 per cent less box and cardboard tonnage than immediately pre-war—perhaps less still. Instead, New Zealand conventors were provided with nearly 50 per cent additional to pre-war usage from Whakatane Paper Mills.

New Zealand’s average consumption of box and carton boards for the calendar years 1938 and 1939 amounted to 9,500 tons. Whakatane Paper Mills has produced in the years ended June 30, 1940, and following years 7,000 tons, 9,300 tons, 11,408 tons, 14,110 tons, 12,998 tons, 14,284 tons, 11,605 tons (the latter reduced tonage being the result of disablement for four months of one power-house alternator by fire in January, 1946), and 13,017 tons respectively. Whereas the N.Z. manufacturers of kraft wrapping paper and paper bags enjoy substantial tariff protection, box and carton boards imported into New Zealand pay no Customs duty other than 3 per cent primage, yet boards comparable with the Whakatane product landed at main ports cost per ton from £9 5s (M.G. Duplex) to £24 2s 6d (Glazed Woodpulp) more than the price permrtied to be charged for the Whakatane product.

If an export permit could be obtained for Whakatane board at least half of the Company’s output could be placed in Sydney alone at prices ranging from £8 5s per ton (Rigid Box Board) to £lO 15s per ton (White Lined Screenings Board) higher than the present officially approved prices.