"ON FIRM BASIS"

Poverty Bay Herald, Volume LXV, Issue 19699, 3 August 1938, Page 13

"ON FIRM BASIS"

WHEAT, FLOUR AND BREAD EFFICIENT PLANNING CONTINUANCE SOUGHT MR. SAVAGE'S REVIEW I r.-r I'ri'im Association.J CHRISTCHURCH, this day. "Resolutions from all sections urging a continuance of the present .cnemes of control in the wheat lour and bread industry, have been eceived by the Government, which .eels that "this great industry ha; jeen placed on a firm and lasting oasis,' said the Prime Minister, the Rt. Hon. M. J. Savage, in a statement to The Press after a toui .hrough parts of the wheal growing districts. The scheme gave to the wheat ,rower a guaranteed price which wa: .mown to him at the time he was preparing his ground for seeding, and hus he could plan his operations ,vith confidence, said Mr. Savage .•ormcrly, he had to wait until his wheat was harvested and sold nearh a year after the preparations for the .rop had commenced. Even then, the price could drop suddenly as a result of importations and low price: overseas. The farmer could not plant wit! ecurity and confidence that he woulc ae able to sell all his crop at a gooc. price, irrespective of fluctuations ir. jrops in the United States or Runania, or of prices in Chicago or Liverpool. Passing of Price Wars "The flour millers have no longer to fear disastrous price wars, bui have a fair price fixed for flour in relation to milling costs, and the cost of wheat," continued Mr. Savage "Their flour is sold for them on s small comrr i&sicr. and they no lpngoi have to fight for sales or to worrj about the possibility of bad debts. Their market is guaranteed, and they •cceive prompt payment for their flour. They can concentrate on their ane task of making good flour. "Bakers, similarly, have a fixed price for bread and need no longer 'car ruin through the activities o; price-cutters who sell bread at less .han cost price as a 'draw line' to attract customers for groceries and other lines. Bakers now know that provided .hey turn out a product of good quality, they can sell it for a fair price which gives them a reasonable return. They alsb have security and a fair price. Inucrease in Wages "The workers in all three industries had received wage increases under the new scheme and their conditions of work had been improved in other ways. These bene fits to all concerned had been achieved mainly by economies, and by efficient planning which eliminated waste, and no. at the expense of the consumer. "The interests of-the consumer aiso have not been forgotten," said Mr. Savage. "Bread is cheaper in NewZealand to-day than in Canada, which is one of the greatest wheatproducing countries in the world. "When fihe Government assumed iffice, the wheat industry was in ;: chaotic condition. Kb one was contented. No time was lost in making an attempt to improve tin intolerable slate of affairs. "To bring about a remedy, tk Minister of Industries and Co nmerc .he Hon. D. G. Sullivan, decided 1 the wheat committee conlro >vcr the whole of the wiieat and lour industries, and to fix the pric; of bread. The whole of the distribution Of 150.000 tons of flour aai 35,000 tons of bran and pollard wa> placed in its hands. "The present scheme of control has been endorsed by the wheat grow ars, millers and bakers as the best yet devised for the whole industry."