CUTTING EXCESS COSTS

Taranaki Daily News, 18 February 1931, Page 9

CUTTING EXCESS COSTS

WAGES AND OTHER ITEMS

READJUSTMENT IN NEWSPAPERS.

GRAVE EMERGENCY TO BE FACED

Dy Telegraph.—Press Astsbcistitm.

Rotorua, Last Night.

The urgent necessity for curtailment of the. costs, of production was stressed to-day by Mr. C. W. Earle in his presidential address to the annual conference of the Newspaper Proprietors’ Association of New Zealand. It was not only desirable but imperatively necessary in the interest of all, lie said, that tlie conference should devote its main attention to the pressing problems associated with production costs. The position to-day from the newspaper proprietors’ and newspaper managers’ point of view was full of difficulties. “We are faced,” he said, “with economic conditions inimical to our interests, which in certain respects are beyond direct control. In other respects we can by sound and prudent action lessen our difficulties and place ourselves in a position of greater strength to meet what undoubtedly must prove a period of financial and commercial stress and insecurity. No doubt many members have already taken steps individually to cut costa and minimise the effects of the losses of revenue following on general slackness of business. We have got to readjust our ideas as to what we as newspaper publishers can at this tiiiie afford. For many years we have taken pride—quite legitimate pride—in. the quality of the service supplied to the public by the newspapers. We have perhaps been a little inflated over the compliments we have received. It has spurred us op to still greater efforts to cater for readers at ever increasing cost. ’ Cable services have been enlarged at charges which have grown highfer and higher. Wehave introduced more and still more new features in the way of special articles, special corresr poiidenee and illustrations. Telegraph bills have piled up. Larger jssucs have been necessitated and staffs have been increased in size. Arbitration Court awards have added still further to the cost per head of the increased staffs. We have expended large sums on new machinery and plant, many of the offisee to-day being equipped with the, very latest and most costly printing appliances. “We have been lulled into acquiescence in this state of affairs by a number of factors, the most important of which has been the general prosperity of the country and consequent expansion in business. Such qualms as we have frorii time to time experienced over the moiinting costs of newspaper production have been cased to some extent by the comforting knowledge, that these costs were balanced in part by the growth of our business. In consequence We have not'always resisted the upward movement of the cost as strongly as we should have done. There has gradually resulted disproportion as between the growth of costs and income, which with the drop in revenue to-day lias become gravely accentuated. I think we recognise the necessity for a thorough review of the position that has developed, .and we are. all alive to the fact that there should, be as little delay as pos-. sible in taking definite action in seeking a solution to the costs problem. “There is one obvious step to be taken. The Prime Minister of the Dominion has already given the country a lead in this respect. Mr. Forbes has decided on a 10 per cent, cut in wages and salaries from Ministers downwards throughout the whole of the public services. He has commended a similar course to employers generally as a necessary step towards the restoration of economic stability, which has been so rudely disturbed by the slump in commodity prices. The necessity we have recognised as newspaper proprietors to readjust the costs of reduction is endorsed and calls for the action emphasised by the Prime Minister’s appeal, but the percentage cut in wages and Salaries is only one movement towards costs reduction. We still have a wide field to work on in feature and social services, which camiot be justified in the conditions which prevail to-day. These matters should be fully discussed at sectional meetings and some common agreement reached.” It had beeti suggested that in the face of the increased costs of newspaper production papers would be fully justified in withdrawing the present discount bn the twopenny paper, which placed the daily papers in the hands of the people at lAd per copy, and making the price 2d all round. His personal view was that, though circumstances might warrant the fixing of the price at 2d, it was inadvisable to take a step of that nature in the conditions prevailing to-day. It was preferable to carry the existing loss on sales of papers, for the time being at least, and to concentrate on such economies as might be found possible without seriously diminishing the service rendered by the daily Press to its readers and the community in general.