N.Z. MANUFACTURERS RESENT IDEA OF PROFIT REGULATION

Grey River Argus, 31 May 1948, Page 3

N.Z. MANUFACTURERS RESENT IDEA OF PROFIT REGULATION

P.A. WELLINGTON, May 30. Mr D. I. Macdonald, secretary of the New Zealand Manufacturers’ Federation, commented on the report oi Mr F. P. Walsh, the president, to the Wellington Trades Council regarding the Price Tribunal. He said: ’‘Statements attributed to Mr F. P. Walsh, reporting as president to the Wellington Trades Council annual meeting, and relating to operations of the Price Tribunal, would appear to affirm the claims of the New Zealand Manufacturers’ Federation that it is the intention of the Government to use the Control of Prices Act as a measure designedly to control profits, manpower and production. The New Zealand Manufacturers’ Federation has no objection to price control as such where the supply of certain classes of goods is inadequate to meet the normal demands. However, it will continue strongly to oppose the veiled use of what is ostensibly a price control measure to force industry to meet increased costs out of profits, and, in turn, to regulate manpower and production. Manufacturers have an obligation to the public to produce goods required to the fullest extent possible under reasonable trading conditions. They also have an obligation to give employment to thousands of workers employed in their factories. To produce an individual article at loss, or to operate a business on an insufficient margin of profit, would in itself be anti-social, and would disrupt the whole of our economy. On the other hand, sound and logical administration of price control must recognise actual costs of production and distribution, including their rising tendency right outside the control of manuiacturers themselves”.