PAPER MILLS

Wairarapa Times-Age, 4 October 1938, Page 8

PAPER MILLS

WHAKATANE CONSTRUCTION STOPPED UNTIL AFTER THE ELECTION. ASSURANCE WANTED FROM GOVERNMENT. (By Telegraph—Press Association.) ROTORUA, This Day. Owing to the failure, it is stated, of the Government to give a satisfactory assurance that in the event of its return at the election it will not socialise the paper pulp industry, construction on the Whakatane Paper Mills has been stopped until after the election. The whole of the gang at the paper mill, numbering 155 is being paid off today. Mr H. Horricks, managing director, said this assurance had been asked for, together with a loan of £20,000 for wages as evidence of the Labour Party’s good faith. Matters had been brought to a head, said Mr Horricks, through the Australian shareholders flatly refusing to pay their calls until the elections were decided, many indicating that if the Labour Party were returned they feared it would confiscate the assets. Mr Horricks said that until late yesterday afternoon he had reason to anticipate the Government would grant both requirements. . As these had not materialised, he decided to conserve the assets by avoiding further capital expenditure in the meantime and to review the position after the election. “If the Government is sincere in its attitude that it will not socialise industry and is prepared to encourage the industry,” said Mr Horricks, “then the door is still open for it to comply with the company’s requests.” •