PRICE OF BREAD

Evening Post, Volume CXVII, Issue 147, 23 June 1934, Page 10

PRICE OF BREAD

PETITION OPPOSED

VIEWS OF BOTH PARTIES

The price of bread is in dispute between master bakers and grocers operating chain stores. Master bakers seek legislation fixing the price at an economical level.

They say the prices now charged by Wellington bakers are at a minimum rate consistent with N ordinary and reasonable trading profit. Those prices arc: Over, tho counter, 54d, delivered, 6Jd, for each 21b loaf.

The price of 5d per 21b loaf yields a gross profit of 13.95 per cent., says Mr. B. Sutherland, managing director of the Self Self Chain Stores. Opposition was expressed to the master bakers' petition to have prices fixed above that amount. That is where the parties disagree. The matter will be debated during the coming Parliamentary session. Tho views o"f the opposing interests were expressed to an "Evening Post" reporter following the publication of the fact that the Master Bakers proposed to petition Parliament. CHAIN STORE VIEWS. "In November, 1932, a large advertisement appeared in the 'Evening Post' announcing that Denhard Bakeries would, the following week, make a drastic reduction in the price of bread," said Mr. B. Sutherland. "A few days later, on November 17, the Self Help Co-op', inserted an advertisement imploring the master bakers not to make the fatal error of selling bread below cost. Denhard's action forced us to ieduee our reasonable price of 4Ad per loaf to 4d—and in some shops bread was'lold as low as 3id. "In August, 1933, after being r,epeatedly implored by the master bakers to raise our price, we agreed to revert to the old price of 4J.d.' On March 19, 1934, after having again and again turned down requests from the. master bakers to once more increase'the price, we agreed to raise our price to sd. We were exceedingly loath to do it and onty agreed so that the master bakers could pay an increased wage to their assistants. We were perfectly happy selling at 4|d and only agreed at, the earnest solicitation of the master bakers' representative. The whole terms of tho agreement were the suggestion of the master bakers and did notv emanate from us. v "Judge of our chagrin when we were again approached in May of the present year by tho master bakers and the Alliance of Labour to once more increase the price of the 21b loaf in our shops to 54d, which wo flatly refused to do. "We buy our bread from bakers who pay their employees award rates," saidMr. Sutherland. "We are' perfectly satisfied with their arrangement with us, and the gross percentage profit we make on. the sale of bread is more than the gross percentage we make on the whole of our business. "The price at which we sell bread in Christchureh and Auckland is 4-Jd per 21b loaf, and the baker supplying us in Cnristehurch, who employs labour and pays award rates, has requested us to reduce our retail price.' The price in Invereargill and Dunedin is lower even than Auckland and Cliristchurch." MASTER BAKERS' REPLY. Mr. W. A. Kellow, president of the Wellington Master Bakers' Union and the manager and directors of the Donhard Bakery'were shown Mr. Sutherland's statement. Bakers had been selling below cost in many instances and tho petition, signed by every master.baker in New Zealand, was necessary to save the business of the bakers, said Mr. Kellow. Dunedin bakers particularly were in a very bad way. "During the last three mpnths the Alliance of Labour approached us, and as a result of conferences better conditions and better wages have- been agreed upon in Wellington district," said Mr. Kellow. "To be able to maintain the increased wages and conditions it is necessary for bread to be sold at the present-price. The price of bread in Wellington is not likely to US increased. So long as bread remains at the level of 5M and 64d-(over, tho counter and delivered) the business is on a payable basis. All that is asked is for grocers to , sell over the counter at * 51d. It is only since the war that grocers haVe stocked bread to such an extent. •, ■ "Bakers throughout the Dominion are in a very bad way owing to the competition of price cutters. "There are indications of strong support in Parliament for our petition next session. Bakers arc on a united front. . ♦ "At the present moment1 price-cut-ting is worse in other centres than it is in Wellington, and if all the other centres could bring their prices up to the Wellington standard all/would be well. This is a determined effort,to save our business."

Asked what increases had been given td employees in March, Mr. Kellow said the wages had been advanced from' £4 and £4 10s per week to £4 10s and £5 per week. On top of that 6d an hour extra .was.being paid to bakers who commence work before 4 a.m.