DRASTIC ACTION

Bay of Plenty Beacon, Volume 2, Issue 108, 10 January 1940, Page 1

DRASTIC ACTION

00PAPER MILLS SENSATION WHOLE STAFF UNDER NOTICE OF DISMISSAL GOVERNMENT PRICE FIXATION BLAMED Interviewed last evening concerning the rumour that the Whakatane Paper Mills intended to cease operations next Tues day failing a satisfactory settlement being arrived at between the Government and the Company as to the prices the Company should be allowed to charge for its paper board, Mr H. A. Horrocks, Managing - Director, stated that notice of dismissal had been given the Compan3 r 's employees and there was every prospect that production would be suspended next week. "We are an Australian Com pa in*," said Mr Horrocks. "and although wo are prepared to co-operate with the New Zealand Government to any reasonable extent my directors do not (eel justified in continuing operations at. unprofitable prices. "The refusal of the Price Tribunal to give reasonable consideration to the company's new price list has brought about the present deadlock and until the Controller of Factories is prepared to accord full recognition of manufacturing costs; arising under war time conditions and the (! eve rnmen t"s Industrial legi si a tie, n.. there is no sense in carrying on." 2i2 Men Out of Employment. Some men will be thrown out :>f employment, and as the company's wage bill approx!males LI UK 1 per week, the cessation of production, for however short a time, will mean a severe loss to the district. Mr Horrocks slated that the plan' had been in opera! ion for six months and was rapidly approach- i ing a high slate of eil K'iee.ey as the .men were now fairly well trained and many initial problems had been satisfactorily solved. Production for !he four weeks prior to Christmas approximated tons, valued at .t):5 ) -'>;;u. Production for the current week is estijnated to exceed CJOOO. For the current year it had -been expected that the plant would manufacture at least KHhiO tons ot board for the local ma.rivet, and based on overseas prices, the turnover should exceed £300,000. As the box makers of the Do million have been refused Import Licenses in reliance of the mills taking care of their requirements, the deadlock which has arisen calls for immediate attention. Mr Horrocks stated that most of the boxmakers have placed orders for considerable tonnage at the new prices asked by the miil but these orders cannot be executed As proof that that the Company was not profiteering and endeavouring to serve the industrial needs of the Dominion, Mr Horrocks further stated that the Boxmakers had been invited to nominate a member of their Association to join the directorate of the Mills and that full access to the company's costing records would be accorded the Association. Conflict of Opinion. Mr Horrocks states that there is a sharp conflict of opinion between the Controller of Factories and the Directorate as to the prices the company should be allowed to charge but in view of the inexperience of the Controller concerning the intricate problems of operating a plant of this nature under existing conditions the Directors were not prepared to allow the mill to be run exclusively by such conhol on a "Heads 1 Win —'Fails, you lose" basis and that the attempt to substitute dictation for co ope ration was strongly resented, by ihe Australian interests.