FLOUR AND BREAD

Evening Post, Volume CXI, Issue 95, 23 April 1931, Page 13

FLOUR AND BREAD

THE PRICE QUESTION

REPLY TO DUNEDIN CRITIC

The Minister of Industries and Commerce (the Hon...P. A. do la Perrelle) to-day made reference to- published criticism from Duriedin of the accuracy of thie report recently issued .by his Department in the matter of flour and bread prices..

Tiie Minister said that the Press message from Dunedin quoted certain flour costs which were-,given in asec- (- tion of the ' report which dealt., with costs during an accounting period ending during.l93o. V . '~-.■'

"As was stated in .both the Bread and the:'-Flour-milling-,' Beports," said Mr. Pcrrelle, "prices were increased generally in July, 1930; by .an : amount of 10s per ton.. Another point overlooked by the Dunedin critic is : .the allowance of a discbunt qri. flour to bakers of ,2| per cent, which had been deducted by the Department. The figures put forward by the /Dunedin baker were the gross prices without deduction of the, discount. There • is, therefore, no ambiguity or inaccuracy in the report in relation to flour prices generally paid by bakers in the main centres.:.-. What might have been mentioned, however, is tho fact that some few bakers doing a large business are able to secure a greater, discount than th« 2$ per cent, deducted by. the Department in its report. ■

"The only other point on which the Dunedin critic based his suggestion of inaccuracy had reference to the selling prices of bread. The Department, when it made, its investigations a few (months ago, found.that bread.prices in Dunedin—and: in fact in.1 some ■ other, centres—vary considerably, and a great deal of price eutting-^espe.cially in Duncdin—^has been in evidence. It is, nevertheless, a fact that until quite recently at least the'standard or geiir orally recognised, price in Dunedin was lid cash over counter, even: though some traders- were selling; at. a lower price. A recent price war in Dunedin may. have made .the cut prices- more general than the standard price, of lid.Tho latter price is 'stillj however,- the price which the Master Bakers*. Association looks for, and, the price^whiek is actually charged in some shops'. - The fact that bread: prices are and, have been from -.time.,,to.;'time,, subject • to 'cuts', is well known and was duly referred, to in the1 report. . -.-' '■:;,

"On the matter 'of bread, prices, therefore^, as well- as ..in"'regard to flour prices,: the Department is, ' well informed;"- said the.. Minister,;, ''and although the report did not go into great detail on these .points, and while the position in different towns is constantly changing in regard to the prevalence :of. price cutting, there• is no ground for the suggestion made from Dunedin that the reports were in any way misleading."...;^ . ;, . ■'■'.'.'