Higher Price Levels: Manufactures' Claims

Greymouth Evening Star, 25 September 1947, Page 2

Higher Price Levels: Manufactures' Claims

[SPECIAL TO STAR]

WELLINGTON, This Day.

The imminence of October 1, the fateful day upon which the recent standard wage pronouncement of the Arbitration Court comes into operation, has led to great activity at governmental and departmental levels by the representatives of New Zealand secondary industry. Manufacturers declare that they cannot, even for a brief period,' carry the extra cost burden to be imposed when wages throughout industry are increased by 10s a week, and they are endeavouring to obtain some immediate assistance to enable them to offset the increased costs. So far they have been unsuccessful.

Midway in the present month, a concerted approach was made to the Price Tribunal with the request that a blanket adjustment on prices should be permitted to come into operation automatically on October 1. The blanket order, it. was proposed, should be applied by each manufacturer to the extent that he considered necessary to absorb all or part of his increased costs, with provision for the manufacturer to be called on to justify the increases to the Price Tribunal if required. The manufacturers argued that, in view of the fact that prices and margins had been “pared to a minimum,” unless an immediate adjustment were authorised the costs would be a'-capital loss. It is understood that the manufacturers’ representatives met with a flat refusal by the Price Tribunal to discuss their case on the basis of

these proposals, and were told that the Government would not tolerate blanket price increases. The tribunal’s ultimate decision was that it would decide the percentage of increase the manufacturers would he allowed after it had studied the position of each industry. With this assurance, the manufacturers have had to be content, but they are frankly incredulous about the tribunal’s undertaking that all [individual applications by the industry will be dealt with within 14 days of lodgment.' The tone of the tribunal’s assurances does suggest one thing definitely—that, in spite of the Labour demands that under the standard wage increase the cost of living should not be affected, the Government is recognising that prices must be allowed to find a new higher : level commensurate with the new wages.