Rise in Price of Bread

Manawatu Times, Volume 61, Issue 64, 17 March 1936, Page 3

Rise in Price of Bread

HOSPITAL BOARD CALLING FRESH TENDERS FOR SUPPLY.

Following the action taken by the Government in regard to flour and bread, tho contractor to tho Palmerston North Hospital Board for the supply of bread wrote to tho board yesterday asking that tho terms of tho arrangement be reviewed and suggesting that another 7-lGd per loaf should be paid. The writer stated that the rise in the prico of flour by 2Gs and tho reduction in the discount allowed to him, combined with tho riso in wages and shorter hours foi the men, had put up costs exceedingly. The bakers had sent in their returns, showing that it would bo necessary to get at least another id per loaf to cover the extra cost. “Docs tho increaso amount. to all that?” asked Mr. J. Boyce. “I haven’t been able to get much information,” said tho managing-secre-tary (Mr. A. J. Phillipps). Mr. J. A. Nash suggested that it would be best to let the baker cancel his contract.

The chairman (Mr. J. K. Hornblow) said tho rise in tho price of flour was something over which the bread contractor had no control. Mr. G. A. Monk moved that tho contractor should be given the opportunity of cancelling tho contract, and that the board should call for fresh tenders, giving the present contractor a chance to tender .again. “It was not an ordinary trado risk,” commented Mr. Nash in seconding the motion.

As an amendment, Mr. W. Howell moved that the contractor should be paid the 7-16 d per loaf he asked. In reply to a question, tho managingsecretary said the contract had till July to run. It was probable that bakers would not like tendering for such a short period. Mr. Monk said his idea was that tenders should be called for a supply for the next 12 months. The amendment was defeated and the motion carried. The chairman and the managingsecretary were given authority to finalise the matter.