“Better Cloth Cheaper From Nelson Cotton Mill”

Press, Volume C, Issue 29672, 16 November 1961, Page 22

“Better Cloth Cheaper From Nelson Cotton Mill”

(New Zealand Press Association) AUCKLAND, November 15. The Commonwealth Fabric Corporation’s Nelson mill would make a cloth “far superior in quality” to Bombay cloth, a corporation official said today.

“We will produce a cloth with double the nap—and the nap is going to stay there,” he said. “If the wholesale trade is content to take a normal and reasonable 20 per cent, mark-up we can market our diaper cloth at the same price as Bombay. “We absolutely guarantee that the diaper cloth made in New Zealand will be the equivalent of the best British quality, a quality which is much higher than Indian cloth,” he said.

The main points of the corporation spokesman's reply: "ID In the first instance the mill will make denims, diaper cloth and cotton wool. “(2) Denim prices will be cheaper than most of that imported. “(3) Diaper prices will be comparable if those handling the cloth are content with normal trade mark-ups. “(4) The mill will produce a fully varied range of products.”

Dealing with denim production, the official said 70 per cent, of the denim at present used in the country came from the United Kingdom. Most of it was supplied by his parent company, Smith and Nephew. “We will market denim from our New Zealand mill at least Jd a yard cheaper than the bulk of that imported,” he raid. He believed there would also be further savings to the consumer through the fact that the mill would be using the world’s most modern machinery which produced denim in wider widths. Imported denim cloth was 28in wide. The New Zealand denim would be 42in wide—a width which saved makersup at least five per cent, through avoidance of waste. “If our price is id cheaper and there is a 5 per cent, saving in makiifg-up, any-

one who argues that New Zealand denim will be dearer to the customer is off his rocker,” said the official. Sheeting, Winceyette

The mill did not intend to produce sheeting in the initial stages. When it was produced it would be the equivalent of the best British sheeting at a commensurate price. On wincey ettes he said: “We will produce at least the equivalent price of the Lancashire winceyette and the quality will be equal to the British best—when we come to make this line. “Cotton wool, which will be made initially, will certainly cost no more than at present.

“We are not going to build a mill to run at a loss, that would be fatuous . . . idiocy

“But you must note that our prices will be under the strict control of the Industries and Commerce Department—it amounts to price control. “We can only repeat that we will endeavour to keep prices comparable, and it is possible as in th® case of denims that prices will be lower than present landed costs of similar products. Dealing with the allegation that a New Zealand mill could not offer an attractive range of designs, the official commented: “We are going to all sources in the United States and the Continent for our designs, and we can produce anything produced elsewhere.”

It was interesting to note the quarters from which most of the criticism of the Nelson mill was originating, observed the official. “We will serve anyone who has toe money,” he said. "This attitude, naturally, worries the wholesaler who fears he may lose control of a lucrative market.” And the question of dividends going overseas? "Until the mill has reached its full capacity no dividends will go overseas—or only to buy new machinery. Profits will be ploughed back into the mill while it expands from a £1 million concern—the amount of our original investment—to a £5 million concern.

“We will never follow down Asiatic prices—when a country does that it can only lower its standard of living. “New Zealand is suffering from a shortage of overseas exchange. If the mill had not started, and if the exchange situation worsened, would those who have been happily buying from Japan still have kept their licences? “Here’s a human interest angle for you—the firm felt happy about going to Nelson because its biggest mill is in Nelson. Lancashire.

"Naturally they're also happy about the labour situation and the water supply. A new reservoir has been built and will be operating next month. “The cotton mill has decided it must answer its critics because some unfair arguments have been brought forward. “The mill will fight cleanly by stating facts. “Here’s one fact: “When we talk about prices, we are thinking about the price to the consumer. “If the rest of the industry will think along the same lines there is no reason why any Nelson product should cost more,”