Newsprint rise refused

Press, 18 December 1982, Page 6

Newsprint rise refused

PA Auckland A High Court judge ruled yesterday that because of the price freeze, 1 the Tasman Pulp and Paper Company, Ltd, cannot increase .the price of newsprint to newspapers. In a reserved judgment, Mr Justice Barker ruled in the High Court at Auckland that Tasman could not raise the bulk price of newsprint $4O a tonne. . '

The Newspaper Publishers’ Association and 36 member newspapers had sought an injunction to block the price rise, which was to have taken effect on October 1. His Honour said the Price Freeze Regulations applied to the increase, which was the second stage of a $9O a tonne increase negotiated in March.

The company had argued that the price had been agreed before the freeze. However, his Honour said that the clear intention of the regulations was to forbid price rises, even if agreed to in a formula drawn up before the regulations came into force. His Honour also allowed the case of the plaintiffs that there was an implied term in the contract between Tasman and the N.P.A., which made paper price rises dependent on the newspapers’ ability to pass them on. He ruled that the plaintiffs were entitled to costs.

Mr John Henry, Q.C., and Mr Brian Latimour appeared for the plaintiffs. Mr W. W. Thomas, Q.C., and Mr L. Li Stevens represented the company.