The Price of Bread.
The Extension of Commerce Committee of Parliament on Friday presented its report on the charges made by Mr Taylor, M.H.R., against the Flourmillers' Association. The committee finds that the milling power of New Zealand is greatly in .xcess of the requirements of the present population. If the whole of the mills were running twenty-four hours per day their producing power •would be about three times the amount required to fill the wants of the colony. Running an average of nine hours a day, their output would be about sufficient to meet the ordinary consumption of the people of New Zealand. Many of the mills, however, were not constructed to run for more than two shifts. The committee finds that prior to the formation of the Flourmillers' Association the general business of flourmilling in Xew Zealand was on « most unsatisfactory footing. For many vears there was an irregular outlet "in Australia, and in later years the exportation of flour to the Commonwealth has altogether ceas-
•d. The committee finds that lor .a
time the Flourmillers' Association refused to supply flour to retain bakers who- were not members ci the Mester Bikers' Union, >he ulkgur reason for refusal being that the bakers had two prices, one for cash and one for credit. That condition of affairs, however, has ivasod, and the Flourmillers' Associ.v : .on supplies flour at a rate fixed by it from time to time to ail bakers who can show that they are iu a position to pay lor -it. The committee is of opinion that ihe system of cash payments should be encouraged, and the bakers granted *e right to sell for cash or credit as they feel disposed. The committee finds that the FlourUriKers' Association has not restricted the total output of the associated mills, but on ascertaining the total of the orders, the association allocates in quantities proportionate to the output of the several mills
included in the association. The committee find that, though the association is established for the purpose of protecting the millers who form it, there is no restriction so far as individual purchases by the millers of wheat from the farmers are concerned. The evidence goes to show that there has been no reduction in the price of wheat created as the result of the establishment of the Flourmillers' Association. The committee finds that for a period the Flourmillers' Association acted in conjunction with the Master Bakers' Union —a union which fixes the price of bread. It is very difficult to estimate to what extent at times the price of bread to consumers has been unduly regulated. The committee is of opinion, however, that unless unrestricted competition between bakers is again to „ be resorted to, with consequential insolvencies which have been a characteristic of this trade, some form of organisation is essential. The committee summarises the,position as follows .—That the Flourmillers' Association was formed for the purpose of self-protection, and the committee finds that it endeavoured to secure control of the sale of flour throughout the colony ; that a number of the mills in the colony have never joined the Flourmillers' Association ; that the export of the excess of flour to the Australian colonies which formerly existed has ©eased ; that the price of flour to the public has not been increased by £he Flourmillers' Association ; that the Master Bakers' Union has shown a tendency at times to unduly raise price of bread beyond what might be regarded as a fair profit tor that class of trade. The evidence given before the committee discloses the evils possible, on the one hand under the unrestricted competition, and on the other hand under the iron ru i e of combination ; but the committee is unable to recommend a remedy for so difficult a problem, and submits to the House the evidence taken by it
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Taranaki Daily News, Volume XXXXV, Issue 253, 24 November 1903, Page 4
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642The Price of Bread. Taranaki Daily News, Volume XXXXV, Issue 253, 24 November 1903, Page 4
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