BAKING INDUSTRY

Manawatu Standard, Volume LVII, Issue 196, 20 July 1937, Page 8

BAKING INDUSTRY

INDUSTRIAL EFFICIENCY PLAN. CONTROL OVER BAKERIES. (By Telegraph—Special to Standard.) WELLINGTON, July 20. Tlie bakers of New Zealand, through their national organisation, are in process of discussing and voting upon a scheme to cover the whole industry under the provisions of the Industrial Efficiency Act. The proposal appears to have come from a section of the trade, and not from the Mirtister of Industries and Commerce, for the method of adopting an efficiency plan under this legislation is lor the industry concerned to formulate proposals which are subject to Ministerial approval before they can become operative. Nothing may come of the movement, but all concerned in the baking trade are discussing the plan with interest as a preliminary to voting on the details which have been framed for submission to all brandies of the New Zealand Alaster Bakers’ and Pastrycooks’ Association.

OBJECTS OF REORGANISATION. Aliy reorganisation of the industry, it is stated, would aim at reducing tho_ margin between cost of ingredients, labour, and overhead expenses, and the prices of the various'products to the lowest possible figure consistent with profitable trading; the elimination of redundant and inefficient units of production; and reducing wasteful methods of manufacture and delivery. One of the most important features of general organisation under an efTiciency scheme would be the elimination of redundant bakeries, and this point is fully discussed in the proposals submitted to master bakers. Although it is assumed usually that the small bakery is the inefficient unit, such, it is stated, is not always the case, for if a bakery is constructed and equipped to produce goods in excess of the demand which can be economically served, it will be less efficient than a number of smaller units. Borne study would be required to determine the most profitable type of bakery in different localities. It is pointed out that probably in isolated districts in the country a bakery producing 2000 21b loaves per week would be an efficient unit; while in small towns and more densely populated rural districts the efficient unit would produce 0000 21b loaves per week. Bemi-automatic and automatic plants might he the most efficient in the bigger towns and cities. The attention of bakers is being called to the argument that where several units are operating to produce and service a definite area which could bo just as conveniently served by a lesser number of units, increased production costs are incurred, and it is this state of affairs which the scheme desires to remedy. LICENSING OF BAKERIES.

If a national scheme under the Industrial Efficiency Act is adopted, it would be administered by a central committee including representatives of the trade and the Industries and Commerce Department, its most important duty being to rationalise the industry by eliminating unnecessary production and delivery units. The plan makes it clear that this process would have to be financed by the industry as a whole. The central committee would have power to issue licenses, all existing units receiving a temporary license operating for one year. During the intervening period, a national survey * would, it is assumed, enable the redundant units to be determined, and a process of amalgamation and consolidation would be encouraged in those districts where inefficiency or high costs can he shown to be due to an excessive number of units of either production or distribution.

In carrying out the plan of elimination of redundant bakeries, the central committee would have power to finance purchases of plant or premises, the understanding being that funds for compensation or purchase would have to be created by the trade by way of levy or otherwise, this liability being borne by the whole industry. To enforce rationalisation of the baking trade, the central committee would have power, following the expiry of the first year’s temporary license, to refuse a license to an inefficient or redundant unit so long as it is prepared to purchase it, if required, at a fair and equitable price. An important provision associated with the power to refuse a pernvuient license is that it must be shown that by so doing a saving of not less than a farthing per 21b loaf on cost of production, and/or a saving of not less than a halfpenny per 21b loaf on cost of delivery, can be effected by the elimination of such "business.

The experiment may lie considered too drastic to adopt by the trade, but the decision rests with those directly concerned, and the scheme is of general interest as indicating the general lines on which any industry may carry out a rationalisation plan under the terms of the Industrial Efficiency Act.