Price Discussions Offered

Press, Volume CIX, Issue 32234, 28 February 1970, Page 48

Price Discussions Offered

‘(N.Z. Press Association) i WELLINGTON, Feb. 27, ! The president of the Manufacturers’ Federation (Mr J. S. Osborne) said today that manufacturers were willing to meet the Minister of Industries and Commerce (Mr Shelton) to discuss price movements. “We are always willing to me?t the Minister and discuss problems with him in a constructive way.” said Mr W. Osborne in a statement. “However, we do not feel a system of prior notification of price increases is likely to achieve much unless it is accompanied by systems of price control and enforcement. or even extended to include a system of wages stabilisation.

“The Manufacturers’ Federation, along with the Government and the Labour Party, have expressed their opposition to an over-all control over wages and prices. "We are aware that there is concern in the community today about rising costs. Manufacturers. and in fact all producers, share this concern,” he said. “Their prime object is to sell as many items of output as possible both on the home market and for export, which means that their charges must be attractive to the domestic. consumer and to the overseas buyer. “On the other hand, the situation has to be faced that over the last 12 months there has been almost unparalleled and successful pressure by workers’ organisations to increase wages without there necessarily being a related increase in productivity. “At the same time the I

costs of almost all imported materials, reflecting movements in world prices, have increased, while internal costs have also been affected by rising freight charges. “On top of this has been the industrial unrest in many sections of the economy, including shipping and waterfront hold-ups, which have all added to the cost of production and distribution, both at home and for export. If the country indulges itself in luxuries such as the Wainui dispute, it can hardly oom-plain-when it is' presented with the bill," he said. “There is no indication that the pressures are going to disappear and manufacturers know that the marketplace cannot be isolated from them. “This means that the spiral can be expected to continue, but we are prepared to discuss with the Minister techniques which will avoid' 'severe shocks and be equit-1

able for all concerned,” Mr Osborne said.

“Some comment has been made recently about different manufacturers of similar products changing prices by the samp amount. This is inevitable. because increased costs affect all manufacturers of similar articles to very much the same extent. ’’lf for example, the cost of tinplate goes up. this will have an equal effect on all manufacturers who pack their products in cans. The effect on competing products will be about the same, and this applies to most cost’s, including materials, application of a new industrial award, or increased charges for services, including transport," he said. “Manufacturers resist successive small increases in wholesale prices, and absorb as many additional costs as they can. until they reach the point at which an adjustment can be deferred no longer.”