“UNPROFITABLE PRICES”

Nelson Evening Mail, Volume LXXIII, 10 January 1940, Page 2

“UNPROFITABLE PRICES”

WHAKATANE PAPER MILLS MAY SUSPEND PRODUCTION [United Press Association] 1 1 AUCKLAND, 911. January. 2 Notice of dismissal has been given fto employees of Whakatanc Paper • Mills, Limited, and there is every prospect that production will fc-> suspended 1 next week after a disagreement be--2 tween the company and the Govern- , ment concerning the prices the coms pany is to charge for its paper-board. A statement to this effect was made 1 to-night by the managing director of the - company, Mr H. A. Horrocks. “We are an Australian company, and I though we are prepared to co-operate t with the New Zealand Government to t any reasonable extant my directors do , not feel justified in continuing operar tions at unprofitable prices,” Mr Hor- - rocks said. “Refusal of the Price s Tribunal to give reasonable considera--1 tion to the company’s new price list - has brought about the present deadl lock, and till the Controller of Factories, Mr G. A. Pascoe, is prepared to accord full recognition to ir anufacturing costs rising under war-time conditions and the Governin' t’s industrial legislation, there is no sense in carrying on. “Some 232 men will be thrown out of employment and, as the company's wages bill approximates £I4OO a week, cessation of production for however short a time will mean a severe loss to the district,” Mr Horrocks added. He said the plant had been in opera- ! tion for six months and it was rapidly approaching a high state of efficiency, 7 as the men were now fairly well trained and many initial problems had been satisfactorily solved. Production for the four weeks prior to Christmas approximated 650 tons, valued at £13,500, and production for the current week was estimated to exceed £4OOO. For the current year it was expected the plant would manufacture at least 10,000 tons of board for the local market and, based on overseas prices, the turnover should exceed £300,000. “As box-makers of the Dominion have been refused import licenses and relied on the mills taking care of their ■ requirements the present deadlock calls for immediate attention,” Mr Horrocks said. “Most of the box-makers have placed orders for a considerable tonnage at the new prices asked by the mills, but till the price-list is confirmed by the tribunal these orders cannot be executed. “As proof that the company is not profiteering, and is endeavouring to serve the industrial needs of the Dominion, box-makers have been invited to nominate a member of their associ- ! ation to join the directorate of the [ company, and full access to the com- ' pany’s costing records will be accorded the association,” Mr Horrocks said. There was sharp conflict of opinion between the Controller of Factories and the directorate ox Whakatane Paper Mills as to the company’s prices. Directors were not prepared to allow the mill to be run exclusively by bureaucratic control of a “heads I win, tails you lose” basis. The Government’s attempt to substitute dictation for cooperation was strongly resented by Australian interests, Mr Horrocks said.