GOVERNMENT DENIAL

Taranaki Central Press, Volume IV, Issue 445, 29 May 1937, Page 6

GOVERNMENT DENIAL

CLOSING OF SHEEP RUN Sawmilling Operations Press Association —Copyright. Wellington, May 28. Statements to the effect that a large sheep run and four sawmills in the South Island had been obliged to close down as the result of the . Government’s legislation, which were made by the Leader of the Opposition, Hon. Adam Hamilton, in an address at Levin on Wednesday, were replied to' by the Minister of Lands, Hon. F. Langstone, this evening. "It is a matter of considerable surprise to me,” said Mr Langstone, “that Mr Hamilton, who will no doubt claim to be fair and just in all his ! dealings, should endeavour for polit.i- -: cal purposes to injure the prestige of the Government by making s'tate- : ments which cannot be supported. “In his reeent address at Levin Mr Hamilton stated, according to a.newsI paper report, that as a result of the I Labour Government's legislation a large sheep run and four sawmills in i the South Island had closed down on aeount of higher operating costs. I can give both statements a categorical denial. The lease of the pastoral run in the South Island to which he refers is still current and the sheep were sold not because of higher operating costs, but because of accumulated losses over a number jof years by those financing the licensee and of the desire of those interests to cut their losses while prices for sheep were ruling at a high figure. “Mr Hamilton is also flagrantly in error when he states that on account of higher operating costs four sawmills in the South Island have ceased operations. In the first place only two mills have closed down, but the reason had nothing to do with operating costs but to price arrangements for white pine delivered to the Worth ■ Island for butter boxes.”