PRODUCTION COSTS

Press, Volume XCIX, Issue 29245, 1 July 1960, Page 16

PRODUCTION COSTS

Factors Causing Increases “The Press" Special Service WELLINGTON, June 30. The need to eliminate factors contributing to increases in the production costs of primary industries was emphasised to the Dominion dairy conference today by the chairman of the Dairy Board (Mr A. Linton). The dairy industry, which operated seven days a week, had its costs increased to an unreasonable degree in four ways, he said. These were: import restrictions and over-protection for some industries; the effect of the rigid Mpnday-to-Frlday five-day week; over-employment and competition for labour by protected industries which passed on their costs; the incorporation of the 24 per cent cost of living allowance into the basic wage structure, making the percentage increase considerably greater in seven-day industries where much overtime had-to be worked. The argument that more secondary industries should be established for the specific purpose Of creating additional employment was all wrong, said Mr Linton. He said that the industrial development conference had been told by the Government Statistician (Mr J. V. T. Baker) that Labour would be New Zealand’s scarcest resource for years to come. The five-day week ended at 5 pm. on Fridays. Hours of work should be staggered, at least to cover Saturday work. The present rigid enforcement of the Monday-to-Friday week, with penal rates for everythini beyond that, was having a serious effect on the manufacturing costs of dairy factories. “This costs question is one of the most urgent requiring solution,” said Mr Linton, “and it can only be solved if a different policy is adopted. I wish I could say tiiat the Dairy Board is satisfied that the Government is fully alive to the position and determined nqt to let things drift further.” <■-