PRICE INQUIRY

Bay of Plenty Beacon, Volume 2, Issue 137, 18 March 1940, Page 4

PRICE INQUIRY

THE WKAKATAKE MILLS * BASIS OF COMPUTING COSTS At the request of Mr H. P. Richardson, counsel for Wliakatane Paper Mills, Limited, the Price In-,-vestigation Tribunal, under the pre- y sidencv of Mr Justice Hunter, sat again on Thursday and Friday to hear further submissions by counsel. Mr Richmond saicl the point he wished to submit was that the tribunal in its interim finding took the mill's estimated output, 12,500 tons, to be the same as the prospective sales. Counsel contended that the mill's possible annual output and the pros poctive sale of board output depended on the type of board made and an output of 12,500 tons could"*' not be attained in respect of pro- - ducts required by the New Zealand market, the requirements of which were only about 9000 tons. There was no sale for an output above that figure. Dr. N. A, Foden, who appeared for the Crown, said there was never any distincSign made between tonnage output aWI prospective sales. It ,was a denUltatc attempt to get the tribunal to reverse its decision. Mr Richmond said that, whatever the tribunal bad understood by the figure cf 12,500 tons, he had always meant what the miil could produce > as a maximum output,, not what it could sell. His Honour: Well, the tribunal accepted your own figures. What is - it you suggest we should do? Mr Richmond said the company could not see a demand in New Zealand for more than 9000 tons. If the findings of the tribunal were upheld and costs were fixed on the supposition that 12,500 tons could be sold a debacle, would result. i His Honour: What tonnage da you say the tribunal should have taken instead of 12,500 tons? Mr Richmond: We would have preferred you to work upon the oilier basis of taking the unit costs. On behalf of the Box makers' Association, Mr W. Perry said the application was in the nature of an appeal on facts.. The tribunal,, having heard - evidence, deckled on a certain figure and the company was now asking that that figure should be discarded. £1 A TON INCREASE SOUGHT After a conference between the parties and also with the tribunal in private, Air 11. P. Richmond, counsel for Whakatane Papdr Mills, Limited, submitted to the Price Investigation Tribunal minimum prices on which the company feels it possible to cany on business. These provide for a general increase of £1 a ton on the cardboard produced by the company, over and above those iworked out on the basis of the tribunal's Interim findings. Mr Justice Hunter said that Dr. Foden, for the Crown, and Mr W.' Perry, for the boxmakers, would ' have lhe right to make submissions in writing on these prices. The tribunal would then consider the whole material before it and give a final decision. It was not proposed :o hold any further sitting on the maVter.