Freight Report Inference Concerns Manufacturer

Press, Volume CVI, Issue 31169, 20 September 1966, Page 6

Freight Report Inference Concerns Manufacturer

A manufacturer, Mr B. R G. Carey, said yesterday that Ihe was concerned at the inference which he drew from a report of the Industries and Commerce Department on the survey of freight costs incurred by South Island manufacturers. The inference was that the j department did not consider! feasible a form of differential! freight rates. Addressing the monthly meeting of the Canterbury Manufacturers’ Association, Mr Carey said that the department seemed to consider that gains by South Island industries which effected economies on freight on their manufactured products to the North Island market would be lost by, those of them which obtained much of their raw material from the North Island. Mr J. K. Dobson said he felt that the association would be right in assuming that the report would be implemented. The immediate past president of the association (Mr R. G. Pearce) said the association should offer the Minister of Industries and Com-! merce (Mr Marshall) its cooperation and that of all itsl members. A resolution to this effect was adopted by council. 1 Mr Pearce said he felt the report laid the foundation for action to correct the imbalance of growth.

. To do so, he said, would require much study and con- ■ .sideration of all variations of freight incidences in the ■ various industries. Mr Pearce said that manufacturers must locate any expansion they contemplated in areas of greatest profits, industries could not justify to i their shareholders, or to their I boards, putting industries in areas in which they would willingly accept lower profits. The report said that some South Island firms were prepared to accept lower profits to gain access to larger markets. “1 feel that is a very limited statement,” said Mr Pearce. “It is not that we are prepared to accept lower profits. We have no option but to receive lower profits.”