THE PRICE OF BREAD.

New Zealand Herald, Volume LXVIII, Issue 20959, 24 August 1931, Page 5

THE PRICE OF BREAD.

EFFECTS OF PROTECTION. MASTER BAKERS' ATTITUDE. " SCRAP THE' SLIDING SCALE." The attitude of the master bakers on the question of import duties on wheat and flour is summarised in a statement that lias been made to the Herald by Mr. H. P. Burton, president of the New Zealand Master Bakers' Federation of Employers. While upholding the principle that there should be some form of protection for wheat-growers ho advocates a return to the old fixed protective duty on flour of £3 a ton. "With regard to the sliding scale as affecting wheat and flour prices, and its attendant effect upon bread prices, it seems necessary, in view of the effect on the public, that the master bakers should state the position," said Sir. Burton. "As an organisation the bakers have always upheld the principle that there should be some form of protection to the wheatgrowers, and we believe that viewing the matter from a national standpoint that cannot be denied. When the sliding scale was first introduced, however, it was never anticipated by its sponsors that the present wide discrepancy between New Zealand and Australian prices for wheat , and flour would obtain. "To-day flour may be bought in Ausfialia as follows: —Melbourne, £5 10s f.o.b. a ton; Sydney, £7 10s f.o.b. a ton. "If freight and incidental charges, including cartage at this end, are added, flour can be landed and placed in tfie factbry of Auckland or Wellington bakers at approximately from Sydney £9 a ton and Melbourne £7 10s a ton, as against the Auckland price of £lB 7s 6d a ton, less per cent, for New Zealand flour. "In view of these figures, therefore, is is obvious that the wheatgrower of New Zealand is enjoying a protection .out of all proportion to equity and public consideration. We do not suggest that the wheatgrower cannot sustain the prices now obtaining for milling wheat in New Zealand, in the light of the position, say, two years ago, but we do suggest that tho&o conditions do not obtain to-day. No argument has so far been adduced, even by Sir. W. Machin, of Canterbury, that will show why the wheatgrower should receive the present abnormal protection, while the dairy and wool interests have to meet world competitive prices. A Public Challenge. "Mr. J. A. Macpherson, M.P., in interjection to the Hon. J. B. Donald in Parliament, suggests that the bakers have been spoon-fed! In view of the fact that the Department of Industries and Commerce has repeatedly investigated bakers' costs, and lias never yet seen fit to tell frequent Committees of Parliament that the bakers' price is anything but reasonable, such criticism needs no comment. As president of the New Zealand Bakers' Federation, I will go further, and say publicly that the bakers of New Zealand will submit their costs to any competent

tribunal Mr. Macpherson may set up, and if it can be shown that bakers' prices are too high, the remedy will be met. This challenge is open to any coterie of Canterbury wheat interests. "From telegraphed information in the Herald of Saturday, we note that the Wheatgrowers' Co-operative Association and representatives from all fiourmilling interests in New Zealand have co-operated to ensure a further stabilisation scheme. As bakers we are not concerned with the merits or otherwise'of this scheme, excepting to say that it will not help to reduce bread prices.

"What is really required is Parliamentary action. It is self-evident that the wheatgrowing interests of Canterbury have, by combined influence, induced Parliament to bolster up, in view of present-day conditions, what is plainly a fictitious price of wheat and flour at the expense of the. consuming public. "The bakers of New Zealand, and finally the public can receive no redress, excepting through a reduction of flour prices. In spite of this, the bakers are bearing the full brunt of the economic stress existing, and bread is being forced down in price to prohibitive rates, without any appreciable reduction in flour prices, a state of affairs that must exist until February, 1932. "With regard to the suggested rate-for February, 1932, at 4s 6d a bushel for wheat, this price will still leave a protective duty of £6 a ton at Auckland on Sydney flour, provided present prices continue, and £7 10s a> ton on Victorian prices. We therefore publicly raise our protest against the retention of the present sliding scale of duty, and submit that the public is entitled to ask the Prime Minister to scrap the sliding scale without delay, and substitute a protective duty on flour of £3 a ton, as formerly existed.

United Action Necessary. "On this basis there is some prospect for a substantial reduction in the price of bread after February, 1932, but unless some united action to protect the public interest is taken forthwith, New Zealand will still have to pay a high price for bread beyond that period. "The flour used in New Zealand, according to statistics from the Official Year Book, 1931, was as follows Produced in Now Zealand, 136,917 tons; imported, 9538 tons. Taking the difference between the present New Zealand price of flour and striking an average between Sydney and Melbourne flour on a landed charge in the North Island, the present protective duty means that on the figures above quoted the consuming public of New Zealand pays no less a sum than £1,250,000 annually to maintain the wheat industry. ' , "Finally, it appears thafc the bakers are being made the catspaw of the present agitation about bread prices, to the exclusion of the true facts above stated. It is an open secret that the interests concerned have stated that the economic position would force bread prices down in any case. In the meantime those interests are once again organising their forces to maintain further fictitious prices after February, 1932, without regard to bakers' or public interest whatover, "The whole bakery trade of New Zealand, due to immediate contact with the public, is seething with discontent, having been forced to reduce prices of bread without a corresponding reduction in flour prices. It is only fair to the millers to say that wheat has been bought at high prices for present consumption to February, and that there is no prospect whatever of variation in flour prices until 1932. .When the public outcry is made about, bread prices, it is well that this should be remembered.

"The vital point to be remembered, however, is that unless some action is taken immediately the price of flour in February, 1932, will mean the further retention of high-priced bread. In view of the fact that the consumption of flour in New Zealand is round about 1901b. a head of population, the matter is highly important."