PRODUCTION COST

Hokitika Guardian, 26 June 1933, Page 8

PRODUCTION COST

ON RUBBER PLANTATIONS Sir Eric Geddes, at the annual meeting of the Dunlop "Rubber Company, drew the attention of ike shareholders to the great reduction that had taken place in the costs of production on the Dunlop Rubber plantations, and declared that in the current year the cost was less tlian 2d per lb. He was looking forward to a'still further reduction as the result of increased production, and added. “When this cost .is achieved, as we believe it will he, the present so-called prices, for rubber will not'be 'foiiiid to be unprofitable.'” This was the obvious direction in which salvation for the rubber industry was to be found, and not in restriction. “I respectfully suggest,” . continued Sir Eric, “that no Government has the right to impose a restriction scheme which will penalise the efficient producer, in»order artificially to assist the inefficient; it is unjust to the-efficient producer and to the public. Four and .•a-quarter million pounds are invested in our rubber plantations company, and we, know of no workable restriction scheme which avoids this injustice. In my opinion,” he declared emphatically in conclusion, “the one thing that will assist the rubber industry’s recovery, apart from world conditions, is that all talk of restriction shall be dropped once and for all.