“MUST VERY SOON INCREASE COSTS OF PRODUCTION”

Gisborne Herald, Volume LXXVI, Issue 22923, 16 April 1949, Page 8

“MUST VERY SOON INCREASE COSTS OF PRODUCTION”

WELLINGTON, April 14,

“The decision of the Court of Arbitration relating to the new standard rates of wages is one which must very quickly increase costs of production in factories where the new rates become operative,’’ said Mr. D. V. Wilson, act-ing-president of the New Zealand Manufacturers' Federation, in a statement today.

He added that the federation was pleased to note that the Price Tribunal hoped shortly after Easter to announce its policy and his organisation trusted that it would have an opporunity, together with other main groups of the community, to express its opinion. This, he said, would be consistent with the general understanding which the federation had with the Government that along with other appropriate national organisations it would be consulted on major issues of this type. He also hpoed that there would be an opportunity for each industry automatically to add the actual wage increase involved as a net surcharge on its approved prices from the date on which the new wage rates become operative in each industry. This, he said, would avoid an immediate burden being born by one section of the community and Would allow time for a complete review of prices in each group of commodities affected as award adjustments were made. It would also allow time to gauge the extent to which any increased production or other factors had counterbalanced increased wage costs.