Day 197 - 07 Dec 95 - Page 65


     
       1      in the year.  Excellent food, paper and labour costs have
       2      been replaced by average figures." By "average" he means
       3      that the cost has become higher than it was, does it not,
       4      "average" as opposed to "excellent"?
       5      A.  What they are saying here is before I had excellent
       6      figures and that was OK; now I am only producing average
       7      figures, that is not OK.
       8
       9 Q.   What he means is that in the period he is talking about
      10      which is since May of the same year, your food, paper and
      11      labour costs have become higher than they were?
      12      A.  That is correct, yes.
      13
      14 Q.   That is what he means.  Then he says this: "If this was as
      15      a result of higher Q, S and C I would be happy but I do
      16      not see this pay-off." Do you see that?
      17      A.  I do, yes.
      18
      19 Q.   What he is telling you there is that he does not mind in
      20      the least about higher labour costs, so long as the
      21      service has improved so as to impact in an effect of
      22      higher sales; that is what he is telling you?
      23      A.  What he is in fact -- I mean that is one way of
      24      interpreting it.  The other way of interpreting it is the
      25      fact that is a classic line of quality, service and
      26      cleanliness that has put in there?  As I said before, it
      27      is a reflection of if you are not going through a
      28      particularly good time, I am not going to turn round and
      29      say that every single month I worked, every single day
      30      I worked I was at 100 per cent.  This is a reflection of
      31      that.  You have good times; you have bad times.  What they
      32      are saying is I have gone from excellent to average.
      33
      34 Q.   Look over the page then to 61.  The sub-heading for the
      35      first part is still "Profit and Loss".  Second paragraph
      36      in that page which is a single line: "Under accrual in
      37      labour is also a false economy."   Do you see that?
      38      A.  Yes.
      39
      40 Q.   What does he mean?
      41      A.  That will refer to the practice of where you would
      42      actually accrue a figure at the end of the month because
      43      the payroll was not in, and what happened on numerous
      44      occasions is you would be asked to under-accrue so that if
      45      you had spent £1,000 it would only say that you spent £500
      46      to bring your figure in.
      47
      48 Q.   He says it is a false economy, does he not?
      49      A.  Of course it is because then you have -- what it does
      50      it is a short-term gain for a long-term problem because it
      51      makes that figure for the month look good.
      52 
      53 Q.   That is right, and Mr. Davies did not like that.  He did
      54      not like short-term gains though they might look good?
      55      A.  If it was not liked, why was I asked to do it in the
      56      first place?
      57
      58 Q.   That begs the question.
      59      A.  We come back to the thing that you do not like me
      60      saying; it is all right to do it but do not put it down on

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