REDUCTION IN PRICE OF FLOUR?

Southland Times, Issue 23682, 3 December 1938, Page 6

REDUCTION IN PRICE OF FLOUR?

MARGIN OF BAKERS’ PROFIT NOT SUFFICIENT (

(Special to The Times) AUCKLAND, December 2. It is assumed by many bakers that if as. a result of the inquiry now being made by the Government into the cost of baking in Auckland it is decided that the margin of profit is not sufficient for the proper conduct of the industry relief will not be given by increasing the price of bread, but by reducing rates for flour. This -assumption is based on the pre-election statement by the Prime Minister (the Rt. Hon. M. J. Savage) that it was not proposed to advance the price of bread. Under the two years’ stabilizing plan by the Government rates for wheat, flour and bread were fixed in January 1937 to the end of February 1939. In the last few months bakers have made representations to the Government for relief under the scheme in view of the wage increases imposed for drivers and bakers and the higher cost of all materials except flour. Bakers expect they will be given some relief before the normal expiration of the present stabilization scheme at the end of February. The assumption is that if flour prices are reduced before then millers will be recompensed from the Consolidated Fund which is now charged with any deficit under the control scheme.