INCREASED COSTS

Otago Daily Times, Issue 27388, 13 May 1950, Page 6

INCREASED COSTS

Effect On Grocery Lines

CAKES AND PASTRY RISE BY 20 PER CENT.

PA AUCKLAND, May 12. Price control has been lifted from all pastrycook lines. The Minister of Industries and Commerce, Mr Bowden, has given this information to the Auckland Master Bakers’ Association. To meet added costs the association has decided to increase retail prices of pastrycook lines here by 20 per cent: Decontrol Predictions Auckland retailers believe that about 90 per cent, of the lines which are shortly to be freed from price control are groceries. These lines do not include staple foods like flour, fea, butter, sugar, and eggs, but tinned foods are expected to be on the decontrolled list. Many locally-made goods—mostly hardware—will probably be freed. The list may also include a few furniture and clothing lines, as well as canvas goods and leather goods such as slippers. Grocers say that with the big number of staple lines under control prices for other goods must be increased to meet the increased freights and the removal of subsidies. The president of the Auckland Master Grocers’ Association, Mr. L. Elsmore, said today that a meeting of the New Zealand Master Grocers’ Federation would be held at Wellington on May 24, when uniform new prices for freed lines would be considered. Taking into account the removal or subsidies, freight increases, and higher prices for manufactured goods where raw materials were dearer, Mr Elsmore estimated that the grocery bill of a family of four might rise by 6s to 7s a week when all. thp costs were finally passed on. Higher Fares and Freight Bus operators and carriers in Auckland say increased costs can only be met by higher fares and freight. Some bus operators state that, following the rise in the petrol price and other costs, fares must rise by 10 per cent. The New Zealand Master Carriers’ Federation will meet in Wellington early next week.