PRICE OF BREAD

Manawatu Standard, Volume LVI, Issue 91, 17 March 1936, Page 4

PRICE OF BREAD

SUPPLIES TO HOSPITAL. POSITION OF CONTRACT, Due to the action taken by tlio Government in fixing the price of flour, the Palmerston North Hospital Board yesterday afternoon received a. request from their bread contractors for a review of the present price being paid for supplies of bread. " Alessrs Birch and Son, Ltd., wrote as follow: —“You are no doubt aware of the action taken by the Government in regard to flour and bread. The rise in price of 20s per ton for flour (being half the discount allowed), together with increased wages and shorter working hours for men, has put our costs up accordingly. The bakers here have- compiled returns showing that it will take another jfd per loaf to cover the extra cost. To enable us' to fulfil our contract with you for bread without loss, we will require another 7-16 d per loaf. This is not due to ordinary trading methods, and is something that we have no hope of combating. There is a. very small margin on the present price at which we supply you.” Air J. Boyce asked if the increased .costs amounted to that.

The managing-secretary (Mr A. J. Phillipps) stated that he had been unable to secure sufficient information. The present contract price for bread to the board was 3 7-16 d per loaf. Mr J. A. Nash suggested that the existing contract might be cancelled and fresh tenders called. The managing-secretary commented that the letter was dated March j. from which time ~the current contract had four months to run. Mr W. Howell said the. position of the contractor was clearly not due tc a commercial risk. Mr Boyce: No, it is a political risk. Mr Phillipps stated that there was a wide margin between the board’s contract price and the retail price in Palmerston North. Mr G. A. Monk moved that the contractor he given the option of cancelling the contract and the board should then call for fresh tenders for a period of twelve months. Mr Howell suggested that the contractor be paid on the increased basis for the itnexpircd period. _ The chairman (Mr- J. K. Hornblgw) said that the contractor had always met the hoard reputably, had granted concessions, and was entitled to consideration. The motion to cancel the contract and call for fresh tenders was carried.