HIGH BREAD PRICES.

Auckland Star, Volume LXII, Issue 95, 23 April 1931, Page 20

HIGH BREAD PRICES.

WHO MAKES THE PROFIT?

PARLIAMENTARY DEBATE.

REDUCTION IX DUTY URGED. (By Telegraph.—Press Association.) WELLINGTON, Wednesday. For the purpose of allowing discussion on Departmental reports relating io the flourmilling industry and the cost of production and distribution of bread, the Prime Minister, the Right Hon. G. W. Forbes, moved in the House of Representatives to-day that they 6liould be referred to the Government for consideration. Mr. W. J. Poison (Independent, Stratford) said he considered there was a fonsensus of opinion throughout the country that there should be some reduction in the wheat duties to enable the price of bread to be brought down. He did not think it would be wise to abolish the duties altogether, leaving the wheat farmer totally unprotected. He declared the profits made by the pulling industry were enormously higher than they should be, and he urged the Government should investigate this espect. Mr. J. A. Macpherson (Government, Oamaru) said all that the farmer, the miller and those responsible for transport received for the flour used in a 41b loaf was 6d. It should be possible for the baker to sell bread over the counter at lOd a loaf, and even after allowing for the payment of Arbitration Court wages and other charges, he would still be making a 45 per cent profit. Labour Leader's Views. The Leader of the Labour party, Mr. H- E. Holland, said he thought an investigation into the price of bread should be conducted on an all-round basis. He did not think the wheat duties should be removed until there was something to take their place, because the industry was employing a large number of men at present. He nioved an amendment recommending the appointment of a special committee to investigate. He stated that wheat was being produced in Australia at starvation prices. Silos at Sydney, with a capacity of 7,000,000 bushels, were overflowing, and there were still large supplies of wheat which could not he stored. The effect of allowing the free entry of Australian wheat to New Zealand could well be realised. Mr. Holland said the aspects requiring consideration were the out-of-date methods of flour production and the operations of Distributors, Ltd. He said a case had recently been brought to his notice where certain bakers in the Mataura district had sought to reduce the price of bread, but had been informed if they did so the prices of their supplies would be raised, or the supplies would be stopped. A similar case in his own electorate had come under his notice. Compromise Suggested. Mr. C. A. Wilkinson (Independent, Egmont) said immediate action should ■be taken. Although the present duties were unsatisfactory, he was prepared to accept some compromise, provided it were reasonable. Failing a compromise, he was bound to point out to the wheat growers that the agitation for modification of the wheat duties would be continued, and in the end this might result !n the industry bringing serious effects upon itself. v Flour could be bought in Melbourne to-day for £6 10/ a ton. The New Zealand import duty was £9 10/ a ton, and when freight and other charges were added (and these constituted items of protection), the price in the Dominion was £17 15/ a ton. Without the present duties, flour could be landed in Wellington at £8 5/ a ton. Wheat could be bought from outside sources for 2/6 a bushel on the ship, but the New Zealand price was 5/6 a bushel. An important feature of the situation, continued Mr. Wilkinson, was that the wheat-grower was not getting anything like the protection he thought he was. The benefits of protection went mainly to the miller. No inquiry or other action would induce those making profits to-day to bring about a reduction in prices. The price of bread was altogether out of proportion to other commodities, and Parliament should take v, eteps to see it was brought into line. Mr. D. Jones (Reform, Mid-Canter-bury) said Mr. Wilkinson wanted bread , at lOd, but bread actually was lOd a 41b loaf in Invercargill, Christchurch and Marton, and 8d in Wanganui. "What the member for Egmont should do is to go back to his district and do a little missionary work among the bakers there." , The motion was "talked out."