Golden Bay’s cement up

Press, Volume CXVI, Issue 34103, 16 March 1976, Page 2

Golden Bay’s cement up

r.VZ. Press Assodalion) WELLINGTON, March 15,

An increase of $2.20 iper tonne in the price of 'cement manufactured and sold by the Golden Bay Cement Company |has heen granted by the Commerce Commission. (The new price came into leflect on Friday, March [l2.

' The increase came after an appeal by the company j against a decision of the Secretary of Trade and InIdustry. In its application to [the department the company [sought to have the prices rejviewed on the broad base of : profitability. The company 'claimed that its appropriate 'earning rate would be 26 per 'cent on the basis of profit 'before tax to shareholders’ 'funds.

The department considered 'that the appropriate earning rate would be 21.5 per cent (before tax. and it was against this decision that the company appealed to the Commerce Commission. In its decision the commission said that on the basis of a 21.5 per cent return, the company was entitled to an immediate increase of $1.63 per tonne.

“In addition, and despite the fact that unon the evidence produced, the commission held that it could not! grant the appeal, it con-i sidered that in terms of the! commission’s wide powers ; 'under the act. the comnany ishould receive some relief on! [Other grounds.” The commis-i 'sion set the relief on "other

grounds” to $0.57 per tonne

The maximum prices for the company’s cement ex silo Wellington. New Plymouth, and Wanganui are bulk $42.32 per tonne and bagged $44.95 per tonne. Ex silo prices elsewhere are Tarakohe, $32.47 and $34.63. 'and Picton. where the bagged iprice per tonne is $52.89. __