PRICES FOR FLOUR

Otago Daily Times, Issue 22833, 18 March 1936, Page 10

PRICES FOR FLOUR

**CONTROL SCHEME A MYTH” WITHDRAWAL OF PRIVILEGES AUCKLAND BAKERS’ COMPLAINTS (Special to Daily Times') AUCKLAND, March 17. “Any suggestion of lower prices for flour under the recently instituted control scheme is a myth,” said an Auckland baker to-day. “Although the price appears lower the difference is more than made up by the withdrawal of certain privileges.” Similar statements were made by several other bakers. The bakers arc most concerned with the question of credit when dealing with the mills. Previously payment was normally ipade on the 20th of the following month, but the Wheat Committee demands payment within 14 days of the date of purchase. Flour is a relatively expensive commodity, and this action makes it difficult for many bakers to find ready money. “Most of our customers, particularly the larger ones, make their payments monthly aud some have intimated that they do not intend to change that system,” said one baker. * That means we have to pay for flour before we arc paid for our bread.” Strong exception also is taken to the announcement that bakers will have to take flour direct from the rollers. In the past the mills have matured the flour for clients, but bakers will now have to store it for six weeks. This scheme, together with the matter of prompt payment, will mean tying up a large amount of capital. In addition discounts have been reduced to Is pci cent, compared with 2J per cent, or more in the case of large consumers prior to the new regulations. Previously the mills stacked the flour in the bakers lofts if required, but this sendee is no longer performed. Moreover, delivery is now made only on specified days except in the case of very largo orders. Delivery is charged for beyond a certain radius and this has created anomalies in certain areas. Onehunga bakers have to pay cartage of 10s a ton of their flour, but they have to charge the same-price for their bread. On North Shore, where bakers previously were obtaining slightly better prices for bread than those ruling in Auckland, they nqw have to pay more for flour and receive less for their bread. So far no difficulty has arisen regarding Canadian flour as shipments already on order were permitted to be imported, and another shipment has yet to arrive. “When that is finished I do not know what we will do,” said one baker.