MANUFACTURING COSTS

Evening Star, Issue 25471, 30 April 1945, Page 7

MANUFACTURING COSTS

NEW METHOD OF DEALING WITH INCREASES

LABOUR COSTS AVERAGED IN EACH INDUSTRY

(P.A.) CIIUISTCHUUCH, April 29. '' Discussions on the question of increased costs have taken place during the last few weeks between the Price Tribunal and the clothing industry and between tho tribunal and other industries through the New Zealand Manufacturers' federation," said the Minister of industries and Commerce (Hon. D. G. Sullivan) to-day. " A satisfactory procedure has been arrived at for dealing immediately with the increased cost question on an industries basis. This procedure will enable, manufacturers to recover increased production and distribution costs whicn may arise from the revision of awards.

" To expedite tho necessary adjustments," Mr Sullivan said. " the tribunal will accept group representations where, in its opinion, this is practicable, adopting the group formula for such industries. The tribunal will, moreover, endeavour to make equitable adjustments in the future where goods have been sold without allowance being made for the additional labour cost payable under the amended awards. These provisions are in accordance with the normal practice of the tribunal subject to the proviso which has existed throughout the war that if any manufacturer can reasonably absorb the whole or part of the additional labour costs he may be required to do so.

" The tribunal, in agreement with the Manufacturers' Federation, has decided that for the time being it will in general have regard only to increases in direct labour costs, and that it will deal with such increases on the basis of an average for each industry. " Increases in indirect labour costs/'' Mr Sullivan said, '" will be dealt with by the tribunal later as soon as evidence can be submitted to it by any particular trade or industry proving the extent to which its cost has been affected. Necessarily, anomalies arise in dealing with any trade or industry as a whole, but these will be adjusted when individual traders' costs and prices are under review. " Details of this procedure," the jfinister added. " were (formally conveyed early in the week to the manufacturers through their federation. 1 have reviewed it on this occasion because I feel it should be publicly known that the tribunal has met a difficult situation fairly and equitably, and I am sure this was appreciated by the representatives of the _ New Zealand Manufacturers' Federation in the discussions during which this procedure was determined."