Too Big A Cut For Govt., Sags Mill President

Bay of Plenty Beacon, Volume 14, Issue 51, 14 October 1949, Page 5

Too Big A Cut For Govt., Sags Mill President

“Bearing in mind that the Government has not provided one penny of the capital required to earn its share of the profits, has not accepted any of the risks associated with the undertaking, has not done anything to make the project possible, but has in some respects made it difficult to reach the present stage of development, its claim to such a large proportion of the profit at the expense of the shareholders is wholly untenable and unjustified,” declared Mr G. H. Mackley, chairman, at the annual meeting of the Whakatane Board Mills, Ltd., at Wellington on Tuesday in denouncing taxation as unfair and inequitable. He said there was no encouragement for industry to expand and increase production under present Government policy. The sawmiiling project involved not only provision of a mill and installation of modern logging equipment and maintenance facilities, but also increased transport capacity. Construction of modern timber treatment kilns and adequate conveyor and ancillary equipment between the sawmill and the cardboard mill to bring about maximum integration of the two industries was a most important and essential aspect, Mr Mackley said in discussing the new development which is expected to reach its first stage early in the new year. An output of 12 million feet of sawn timber yearly is envisaged in the completed scheme, but Mr Mackley pointed out that houses and hostel accommodation must be provided for 100 more employees.