N.Z. NEWSPAPERS, LTD.

Otago Daily Times, Issue 27391, 17 May 1950, Page 9

N.Z. NEWSPAPERS, LTD.

Increased Costs Absorb Revenue Daily Times Special Service AUCKLAND, May 16. The special increased revenue earned by New Zealand Newspapers, Ltd., during the past year of considerable activity and expansion, was all absorbed by increased costs, said Mr W. H. E. Flint in presenting the review of the chairman of directors. Sir Cecil Leys, at the annua) meeting today. The most serious blow to the papers’ economy during the year was devaluation- and the full effects were now being felt, said Mr Flint. All the company’s newsprint for 1949 had been ordered and was purchased with forward exchange arrangements. The only additional costs were in shipping freight rates This year newsprint was landing at the record post-war figure of £53 a ton and its price would rise a further 16s 3d a ton if the 7J per cent, shipping surcharge was applied at the beginning of July This surcharge alone would increase the company’s annual newsprint bill by £3457.

“ Before devalution and the shipping freight increase,” said Mr Flint, ” the companys’ annual newsprint bill for 1950 would have been £77,000 less than is now anticipated. Nor is the financial outlook improved by the certainty of a general wage increase, because of adjustments to food subsidies. These are the general governing factors, but in addition the Printing Trades Union is pressing for substantial wage increases, concurrently with the Federation of Labour’s application for a general wage order.” The rising costs the company was now meeting and could not avoid meeting during this year, left no alternative but to make some increases in advertising rates next month.