DOLE BREAD CONTRACT

Timaru Herald, Volume CXXXVI, Issue 19155, 11 April 1932, Page 7

DOLE BREAD CONTRACT

INCREASE IN PRICE. WIDE EFFECT OF NEW MOVE. United Press Association—By Electrlo . Telegraph—Copyright (Received April 10, 5.5 p.m.) SYDNEY, April 9. The Government has concluded a new contract with the master bakers to supply dole bread, at 4/6 per dozen, an increase of 3d on the rate fixed by Mr Justice Piddington. The whole State is affected, and as dole bread is obtain: only from the contractors, many small shops, hitherto handling it, as well as the small bakeries, are likely to be forced out of business.

LIVELY POLITICAL ISSUE. STORY OF EARLIER TRANSACTIONS. About a fortnight ago the cable messages from Sydney reported that Messrs Dare and Purcell, solicitors, had issued a writ on behalf of Shadlers, Limited, claiming from the Government of New South Wales £20,000 damages in respect of an alleged breach of contract. The writ arose out of a contract made in July of last year between Mr Lang and Shalders w'ith reference to the manufacture and supply of bread lor and on behalf of the Government. In July, 1931, the firm of Shalders, Ltd., was given a contract by the Lang Government for the supply of “dole” bread, but the master bakers refused to supply the firm, thus creating a situation which began to be discussed publicly. A total of 500,000 loaves weekly was required, the company to receive 3/11 a dozen small loaves from the Government and to pay the bakers 3/8. The bakers declared that bread could not be produced at this price, and refused to supply below 4/3. A day or two later the Government countered by seizing 1000 tons of flour. Nearly half of this was later released, but the quantity held enabled the bread supplies to be maintained in the meantime. At the end of a week the Government agreed to pay at the rate of 4/3 a dozen for bread, redeemable on dole coupons. On 11th August, in the Legislative Assembly, Mr T. R. Bavin, Leader of the Opposition, vainly moved that a Royal Commission be appointed to inquire into the circumstances under whch Shalders, Ltd., were given the Government contract. He declared that the arrangement with Shalders and its sudden, unexpected abandonment created suspicion in the mind of the community. The Chief Secretary, Mr M. Gosling, in reply, explained that the Government had embarked on the contract because the master bakers were charging too high a price for relief bread. The Crown Solicitor drew up the agreement, but no penal clause was inserted because the Government had the right to terminate the contract the moment the supply of bread broke down. This, he said, was what actually occurred.