THE PRICE OF BREAD.

New Zealand Herald, Volume LXVI, Issue 20364, 19 September 1929, Page 9

THE PRICE OF BREAD.

COSTS OF MANUFACTURING.

MASTER BAKERS' EVIDENCE.

WHEAT DUTIES INQUIRY

[I3T TELEGRAM!. —SPECIAL REPORTER.] WELLINGTON, Wednesday.

Evidence as to the cost of manufacturing bread was given to-day before the Select Committee of the House of Representatives, which is considering the wheat duties. The first witness, was Mr. W. D. Hunt, representing the Unemployment Committee, who submitted a paper on tho possibilities for increased farm production. Tho carrying out of the proposal ho put forward would make it necessary to remove all duties on stock foods, entering the country, which would include wheat and wheat off;il for consumption by stock. It would not be necessary, however, to interfere in any way with duties on wheat, or other grains used for human

consumption. Mr. Hunt denlt in detail with the farming possibilities of New Zealand, and said he was satisfied that pigs and poultry could be put on to a profitable basis under New Zealand conditions. There was a market in England for pig and poultry products, and the question was whether New Zealand could compete with Denmark, which was at present the largest supplier. To raise pigs and poultry on an esport basis it was necessary to compete with world costs. His recommendation was that all duties on stock foods should be removed.

Opposition to Subsidy.

Replying to the Hon. J. G. Cobbe, Minister of Industries and Commerce, Mr. Hunt said he was strongly opposed to any subsidy being paid to the flourmillers. A subsidy always had to be borne by somebody, and it meant an extra 6d on land tax or income fax, or something of that sort. Subsidies only interfered with industry.

Mr. Cobbo: Would you be in favour of Imperial preference ? Mr. Hunt: Free trade within tho Empire? I think it would be tho finest tiling wc could have. The Chairman, Mr. C. A. Wilkinson: It is a long way off. Mr. Hunt: Yes, it may be a long way off, but it is worth striving for. Mr. J. H. Barker, representing the master bakers of New Zealand, expressed the opinion that New Zealand should be self-supporting so far as its wheat was concerned. A decrease of £2 15s ill the price of flour was equivalent to approximately one halfpenny in (he price of a 21b. loaf. The cost of bread production in New Zealand varied veiy considerably.

Calculation of Profits

It was not the price at which bread was sold that determined profit to the baker, but rather the average amount per loaf that the baker was able to get. That varied considerably and could be cor rcctly ascertained only when consideration was given to the relative sales, retail and wholesale,- minus the loss resulting from the practice of taking back from stores unsold bread, and the ever-recur-ring loss consequent on supply ex'ceeding the demand.

Comparing Australian and New Zealand prices, Sir. Barker said that in Western Australia, with flour at £l4 5s a ton, the price of bread was 6d and toria, with flour at £l2 2s 6d. it was s|d and 63d. In New South Wales, with llour at £lO 10s, it was 5Jd and 6d. On that basis the price of bread in New Zealand would be 6£d iind 7d. In Australia the average output of the bakeries was larger than in New Zealand. It was quite clear that there could be no reduction in the price of bread without a relative reduction in the price of wheat and flour.

Mr. D. Jones. M.P., expressed himself as disappointed with the nature of the evidence given by Mr. Barker. No details as to costs had been given. Mr. Barker said there would be other witnesses who would give evidence as to costs. Loss on Heavy Bread. Mr. F. H. Hawker, master baker, of Christchurch, said his firm was making a loss on tho manufacture of heavy bread of as much as 6s 4d a sack of flour. During a day about 55 sacks of flour were used. The tally was made up on fancy lines. Mr. A. House, another master baker, said the costs of delivery had gone up owine to the spread of population. At one time people lived close to the towns, but nowadays they lived at some distance from tho towns and the baker had to follow them. ' Witness (*ave tho following details of the cost of producing a 21b. loaf: —Wacres, .60d; fuel, ,13d; upkeep of plant, .10d; salt and other ingredients, ,31d: flour. at 6 per cent., .08d; delivery waees, .57d; other delivery costs, .25d: total, 5.5 d. Mr. W. A. Kellow. a Wellington master baker, said ho worked out the cost of delivered bread at 5.73 d per 21b. loaf.

The committee adjourned until next Tuesday.

TRADE WAR IN PROGRESS

COMPETITION AT WELLINGTON

[Br TELEGRAPH. —OWN COMIiISPON'DENT. ]

WELLINGTON. Wednesday

That a trade war was in progress in Wellington was stated by Mr. F. 11. Hawker, master baker, of Christchurch, when giving evidcnco before the Select Committee to-dav.

Bread delivered in Wellington, said Mr. Hawker, was 7d, and the prico to the storekeeper was sd. Thero was keen competition for the store trade in Wellington, and lio did not think tho prices would rule much longer. Questioned by tho chairman, who pointed out that on his figures witness was spending £I3OO a year on advertising, Sir. Hawker said (his might be n bit high.