CUTTING COSTS

Evening Post, Volume CXI, Issue 41, 18 February 1931, Page 8

CUTTING COSTS

PEESS PEOPEIETOES

AN URGENT PROBLEM

(By Telegraph.—Press Association.) ROTORUA, 17th February. It was not only desirable but imperatively necessary in the interest of all that the conference of newspaper proprietors should devote its main Utention to the pressing problems associated with production costs, said Mr. C. W. Earle, president, at the annual meeting of the association. The position to-day from the newspaper proprietors' and newspaper managers' point of view was full of difficulties, he said. "We are faced with economic conditions inimical to our intereats, which, in certain respects, are beyond direct control, but in other respects we can by sound and prudent action lessen our difficulties and place ourselves in a position of greater strength to meet what undoubtedly must prove a period of financial and commercial stress and inBecurity," said Mr. Earle. "No doubt many members have already taken steps individually to cut costs and minimise the effects of losses of revenue following on general slackness of business. READJUST IDEAS. "Wo ha-ve got to readjust, ideas as to what we,'as newspaper publishers, can at this .time afford. For many years we have taken pride, quite legitimate pride, in tho quality of the service supplied to the public by the newspapers. We, perhaps, have been a little inflated over the compliments we havo received. It spurred us on to still greater efforts to cater for readers at ever-increasing cost. Cable services have been enlarged at charges which have grown higher and higher. We havo introduced more and still more new features in the way of special articles, special correspondence, and illustrations. Telegraph bills have piled up. Larger issues havo been necessitated, and staffs have boon increased in size. Arbitration Court awards have added still further to the cost per capita of increased staffs. We expended large sums on new machinery and plant,'many of the offices to-day being equipped with the very latest and most costly printing appliances. We have been lulled into acquiescence in this state of affairs by a number of factors, the most important of which has been the general prosperity in the country and consequent expansion in business. "Such qualms as wo have from time to time experienced over the mounting cost of newsjiaper production have been eased, to some extent, by tho comforting knowledge that these costs were balanced in part by the growth of our business. In consequence we havo not always resisted the upward movement of cost as strongly as we should have done. There has gradually resulted a disproportion as between tho growth^of costs and the income which, with a drop in revenue to-day, has become gravely accentuated. "I think we recognise the necessity for a thorough review of the position that has developed, and wo 'are all alive to tho fact that there should bo as little delay as possible in taking definite action in seeking a solution to tho cost problem. ONE OBVIOUS STEP. "There is ono obvious step to be taken. Tho Prime Minister of the Dominion has already given tho. country a lead in this respect. Air. Forbes decided on a 10 per cent, cut in wages and salaries, from the Ministers downwards, throughout the whole of the Public Service. The necessity wo havo recognised, as newspaper proprietors, to readjust costs of production, is endorsed, and is emphasised by tho Prime Minister's appeal, but the percentage cut in wages and salaries is only one movement towards costs reduction. We still have a wide field to work on in feature and social services which c:tnliot bo justified in the conditions which prevail to-day. These matters should bo fully discussed at sectional meetings, Mud some coiwncm agreement reached."