RISING COSTS

Otago Daily Times, Issue 26542, 18 August 1947, Page 4

RISING COSTS

PASSING TO PUBLIC $ MANUFACTURERS’ INTENTION The manufacturers intend to apply to the Price Tribunal, for immediate permission to pass on to the public any increased production costs which may follow the Arbitration Court’s pronouncement increasing the standard wage rate. They will resist firmly any suggestion that they should be required to absorb either the whole or part of,the cost of higher wages. The court itself has clearly indicated that it contemplates price adjustments in consequence of the wage increases. One. of the reasons given by the court for the fixing of the date of operation of the new wage rates at October 1 instead of immediately was “to facilitgte price adjustments and accounting.” Since various sections of the, workers will be differently affected by the wage pronouncement, the extent of increased costs will vary from industry to industry. Furthermore, manufacturers will not only be confronted with increases to their own staffs, but with likely increases in the costs of various materials used in manufacturing processes.