COSTS LIKELY TO RISE

Southland Times, Issue 23180, 22 April 1937, Page 3

COSTS LIKELY TO RISE

NEWSPAPERS IN AUSTRALIA PRICE OF NEWSPRINT The problem of the rising costs of production which faces newspaper managements today in Australia was referred to by Sir Keith Murdoch, the president, in his opening address to the half-yearly meeting of the Australian Newspapers’ Conference in Hobart. _ Sir Keith said he believed that with the obvious increases ahead they could put their minimum increased costs of newsprint and other supplies and services by 1939 at £850,000 a year. The burden of exchange, also, to the newspaper industry in Australia was about £350,000 a year, and in all probability it would very soon amount to £400,000. Referring to the cost of newsprint, Sir Keith expressed the view that _ it would rise steeply, and that newsprint now costing £9 10/- a ton would probably be costing £l2 10/- sterling overseas in two years’ time—which was almost £l6 a ton Australian. Probably newsprint would cost even more—perhaps a great deal more. This would involve an additional cost to the industry in Australia, with other supplies and services, of £600,000 a year; but by 1939 he believed that increased costs in this direction would amount to at least £850,000 a year. Advertising Revenue There seemed to be no prospect of either reducing or increasing the selling prices of newspapers, but he suggested that the time had come for a very careful study of the newspaper industry as a whole in the proportion that advertising revenue bore to costs and rates in other countries. He was certain that from such a study would emerge the fact that Australian rates were very low and relatively nothing like as high as they were overseas. Referring to broadcasting Sir Keith pointed out that the supremacy of newspapers as an advertising medium was unchallenged. Newspapers were not, however, the enemies of broadcasting, but its best friend. Broadcasting had a great national service to perform, and the newspapers remained responsible for the great service of news. They had given ample publicity to the activities of broadcasting stations but had also pressed for improved broadcasting services. This criticism had, in places which ought to know better, been mistaken as opposition to broadcasting. Newspapers had established stations in a limited way and had proved that broadcasting and newspapers worked best when they went hand in hand, each helping the other in the task o r interesting, enlightening and informing the public. Sir Keith added that the Australian newspapers had already expended £250,000 in the investigation of problems relating to the establishment of their own newsprint production plant. Substantial progress had been made in the study of, r.nd organization for, the launching of a newsprint industry. If the final examination proved satisfactory, within two or three months a company would be launched for the manufacture of Australian newsprint, very probably in Tasmania. BANK OF ADELAIDE An increase of £3370 to £16,340 in net profits is shown in the annual accounts of the Bank of Adelaide. The latest Profit is nearly 5 per cent, on capital, and the dividend has been raised from 4 per cent, to 4J- per cent. Over the year deposits rose from £6.714,000 to £7,006,113, and advances showed a small decline to £5,631,000. Cash items increased a little to £626.000.