“GREATER GLAMOUR”

Evening Star, Issue 25948, 13 November 1946, Page 9

“GREATER GLAMOUR”

NEW FIRMS ATTRACT LABOUR The chief factor in the continued shortage of goods in the face .of the unprecedented demand was lack of operatives, and the position had been aggravated by overseas' firms establishing new industries in New Zealand, said Mr F. L. Nicolson, chairman of directors, at the annual meeting of the Bruce Woollen Manufacturing Company Ltd. this afternoon. By providing “ greater glamour,” the new industries had depleted the staffs of the older established firms, resulting in their plants not being worked to capacity. . “ The plants already established ; to suit the natural resources of the country can produce on a more economical basis than is the case where machinery and raw material require to be imported at the present high cost,” added Mr Nicolson. > “ It is difficult to follow, dhe reasoning for the encouragement given to these new industries.” In common with all units of the industry, the problem causing real concern was the diminishing amount of female labour. Several factors had accentuated the position, such as the raising of the school leaving age and marriage. "Unfortunately, the suitable male labour available was not sufficient for the company’s needs. Immigration might bring relief, but it was difficult to see how this could be achieved until the housing problem had been solved. The Bruce mill had been fortunate in that there was no great exodus of employees after the lifting of the man-power regulations, which was largely the result of having practically no directed employees. HIGHER PRICES. Prices for fine wool were expected to increase in the future, and any such advance would naturally be reflected in the price of finished goods to the consumer, continued the chairman. At the commencement of the war, wool was commandeered, and prices .of _ woollen goods stabilised on the existing basis of cost, plus the agreed increase to cover the increased cost of wool, as compared to its price tain further increased her price for New Zealand wool by 15 per cent., but no increase in prices for woollen goods was made to consumers, as local mills tVere debited with their wool purchases at appraisement prices, less a discount of 12 per cent, to cover this latter increase. Later the discount was reduced to 9 per cent., but this increased cost was still borne by the industry which, in addition, voluntarily reduced its price for war materials by 2£ per cent. “ These facts have not been given prominence at any time, but there is no doubt that the industry deserves this credit,” Said Mr Nicolson. “ The people of the Dominion, producers and consumers alike, should know the position, as there seems to be an impression that the woollen companies received ,a discount on their wool purchases, and did not passs oh the benefit in price to the consumer.” The chairman also reviewed the annual accounts and moved the adoption of the report and balance sheet, which recommended a dividend of 6 per cent, and a bonus of 2 per cent, on the ordinary shares.