Subsidy On Flour Is Unlikely To Go

Press, Volume CIII, Issue 30368, 18 February 1964, Page 14

Subsidy On Flour Is Unlikely To Go

(From Our Own Reporter)

WELLINGTON, February 17.

Although, a Cabinet sub-committee has been appointed to investigate the recommendations of the committee of inquiry into the wheat, flour and bread industries, there appears little possibility that the committee’s recommendation to abolish the annual subsidy on flour will be acted upon. “All I can say is that the Government’s policy on subsidies has not changed,” said the Prime Minister (Mr Holyoake) when asked about this recommendation tonight.

When questioned on other food subsidies on January 16, he said: “The Government has no present intention of making alterations to the present subsidies.”

He was repeating the promise given by the National Party last November. and published in the Public Service Journal. During the General Elec-

tion campaign, also, several statements were made that the subsidy structure would be preserved. The removal of the subsidy, whieh involves an annual payment of £5,000,000, would mean an immediate increase in the prices of bread, cakes and domestic flour.

Mr Holyoake said the committee appointed to consider the report comprised the Minister of Industries arid Commerce (Mr Marshall), the Minister of Customs (Mr Shelton), the Minister of Transport (Mr McAlpine), the Minister of Labour (Mr Shand), the Minister of Finance (Mr Lake), the Minister of Lands (Mr Gerard), and the Minister of Agriculture (Mr Taiboys). The Minister of Health (Mr McKay) intends the Department of Health should consult with the bread baking industry again on the application of the regulation that requires bread to be wrapped.

Mr McKay said today the matter had been raised from time to time but the baking industry had consistently maintained that full compliance would be impossible for a significant sector of the industry. However, over the years there had been a steady voluntary increase in the quantity wrapped at the bakehouse.

The industry claimed that the amount of wrapped bread in some cases was not less than 40 per cent, said Mr McKay. He said that Regulation 35 of the Food Hygiene Regulation, 1952, said: “After such date as may be notified in that behalf by the Minister of Health, by notice published in the Gazette, no person shall remove from any bakehouse any bread intended for sale unless each loaf is enclosed in a wrapper of paper or other suitable material, in such a manner as to protect it from contamination.”