Manufacturers deny wool boom lift

Press, Volume CXII, Issue 33052, 20 October 1972, Page 12

Manufacturers deny wool boom lift

The was no possibility of manufacturers making “giant profits” out of the increase in the price of wool, as generally the increased wool prices would result in lower profit margins for New Zealand industry, said the director of the Canterbury Manufacturers’ Association (Mr I. D. Howell) yesterday.

Mr Howell was commenting on statements at a meeting of North Canterbury Federated Fanners. Mr Howell said that since April 1, 1972, the introduction of the Government’s Stabilisation of Prices Regulations meant that the majority of manufacturers were either operating under price control where any price increases had to be approved by the Price Tribunal, or they were operating under “Cate-.

gory B,” which allowed a manufacturer to pass on only increased costs, which resulted in reduction of his profit margin. The present regulations meant that when goods increased in price the manufacturers retained the same unit profit, said Mr Howell. “Federated Farmers, therefore, need have no fears that it will be the manufacturers who price the woollen goods 'off the market,” he said.