DEARER BREAD.

Auckland Star, Volume LXVII, Issue 186, 7 August 1936, Page 8

DEARER BREAD.

EARLY INCREASE.

PREMIER'S STATEMENT

STABILISING OF INDUSTRY.

ADJUSTMENT IN COSTS.

(By Telegraph.— Parliamentary Reporter.) WFLLIXGTOX, this day. In discussing the Board of Trade Order-in-C'ouncil fixing the price of bread, in the House this morning the Leader of the Opposition, Hon. G. W. Forbes, said that with rising industrial costs and shorter hours the prices fixed did not permit bakers to carry 011 their businesses at a profit. They wanted to know whether their ease would receive special consideration.

Wheat growing was not a very profitable occupation. The increase of 4d a bushel would in no way compensate the wheat grower for the increased costs he would have to face. He referred to the dilliculty the farmers would have to face in securing labour owing to the wages paid on public works. He predicted a substantial rise in the price of wheat next season. Had the Government taken that fact into consideration in fixing the price of bread? Preventing Undue Rises.

The Prime Minister, Mr. Savage, said he had never stated that prices were not to be allowed to rise. "What I have said is that undue prices will be prevented, and I have gone to a great deal of pains to explain what I meant. Some industries get more than they deserve, and they are not always noticeable. If the price of bread goes up a penny a loaf everybody gets excited, but there are a thousand and one other services charging 50 per cent more than they shoud, and no one takes the slightest notice of

them. This is a question of equitable distribution. We are not doing it for the sake of giving effect to some cut-and-dried idea we had in mind. We are doing it because it is necessary. Tlw> bakers asked for it —asked me for it before I was Prime Minister."

Mr. Savage said it was an attempt on the part of the Minister to regulate things in the baking trade. It was the duty of the Government to see that industries got a fair share of the buying power available in the hands of the people, and to prevent some people having more than their share because they were better organised than the others. The Government desired to regulate things so as to be able to give various industries and sections of the people an equitable share of what was in the business.

Earnings of Bakerg. "All these cases will be considered on their merits. That is the intention of the law that has been passed," ho added. The Minister of Labour, Mr. Armstrong, had said that the thing that would hit the bakers was that in 1031 not so much night work was done as at present, owing to the law passed in 1032 enabling them to break down existing practices. The bakers, as a result, had their night rates cut down from 4/ an hour to 4i/6 an hour, and work that was previously done (Juring the day was done at night. The bakers' case was shortly coming before the Arbitration Court, when the matter would be adjusted. His view was that the bakers, through having a guaranteed price, were in a better position now than ever before. He contended that the bakers to-day were receiving as much for their bread as in 1031. It was necessary that New Zealand should be self-con-tained as far as wheat growing was concerned, and it would be better for the people of New Zealand to pay a little more for their bread than that New Zealand should import the wheat she required.

The possibility of the price of bread being increased shortly, as a result of reduced hours and higher wages in the baking industry, was mentioned by the Minister of Industries and Commerce, Mr. Sullivan.

The Minister said he thought the increase would be necessary, as the bakers were now working on a small margin, ■but the smallest increase that could be made would be sufficient to meet all the extra charges likely to be imposed by the Arbitration Court. Even then the price would not exceed the price charged for bread in 1931.

Continuing, Mr. Sullivan referred to price increases generally. He said he was perfectly certain that a considerable amount of wild talk was going on. He was closely in touch with the position, and what was mainly happening was talk of the likelihood of increases. Newspapers and the Opposition were praying to their 'little gods" that there would be these increases, and if vast increases did not take place the most disappointed people in the country would be the members of the Opposition.

Elimination •of Price-cutters. Mr. Sullivan said he would admit that the bakers had difficulties as a result of price stabilisation, and that he had put them on a very tight margin, but they did get some advantages. Price-cutters, who were doing about 20 per cent of the total trade, had been eliminated. The Master Bakers' Association was well satisfied with the arrangement, except for the price of bread, and when the Arbitration Court fixed wages and conditions in the industry, and there was a foundation to work on, it might be necessary to agree to some increase in the price. The price in 1931 was slightly higher than the stabilised price to-day. He hoped the House would realise that in stabilising the wheat, flour and bread industries an endeavour had been made to benefit the whole of those engaged.