BREAD SUPPLY

Wairarapa Times-Age, 19 January 1942, Page 4

BREAD SUPPLY

CONTROLLER TO VISIT MASTERTON

RESELLERS POSTPONE ACTION. STATEMENT BY MEMBER FOR DISTRICT. Following on representations made by Mr J. Robertson, member for Masterton, regarding the sale of bread locally, the Bread Controller is to visit Masterton within a week to discuss the question with those concerned. In view of this, Masterton resellers have agreed to postpone action meantime.

Mr Robertson said this morning that he had informed Mr Watson, the president of the Resellers’ Association, and Mr Madden, secretary of the Bakers’ Association, of this development and he had suggested that the parties should refrain from any action pending the arrival of the Bread Controller. Any decision then arrived at no doubt could be made retrospective to the lime when bread deliveries ceased. In the meantime, Mr Robertson said, he had asked the resellers to refrain from any action detrimental to the people of Masterton and he had expressed the hope that would be able to do so. The bakers, he added, could not reduce their price without an amending regulation empowering them to do so. The regulations had to be introduced some time ago to protect bakers from uneconomic competition by certain resellers, who were using bread as a bait to secure customers and were actually selling bread’ over the counter at a lower price than the bakers themselves could sell it. Therefore, a minimum price had to be fixed, below which no one could sell, in order to secure an economic position for the bakers, on whom they had to rely for bread supplies. There had been no rise in the prices of flour or bread in New Zealand since the war commenced, said Mr Robertson, and in that respect New Zealand occupied an unique position. The cutting down of petrol had created a new situation, where some adjustment between baker and reseller might be necessary with a view to accomplishing two things—first, cutting down of petrol usage and. secondly, not to increase the price of bread to the public. NO AGREEMENT REACHED CONTENTIONS OF THE BAKERS’ ASSOCIATION. WHOLE POSITION REVIEWED. The following statement on behalf of the Masterton bakers is made by Mr W. V. Madden, secretary of the Masterton Master Bakers’ Association: ' “In the first place severe restrictions have been made in supplies of petrol and the mastei’ bakers were forced to reduce delivery to an absolute minimum. This could only be done by the complete elimination of all private delivery and the distribution of bread through existing depots, and where possible, arrangements were made by individual master bakers with other depots to handle their bread. “The resellers then petitioned the Master Bakers’ Association for a reduction (at the expense of the master bakers) in the wholesale price of bread so that a margin of Id per 21b loaf might be allowed to the reseller .

“The Master Bakers’ Association advised the resellers that as the wholesale price of bread from master baker to reseller was fixed at 51 d per loaf by the Government, the association was not in a position therefore to grant a reduction as petitioned for. The association was, however, prepared to recommend to its federation that every assistance be given to the resellers in any effort they might make in taking up this matter with the Government, and already steps have been taken by my head office in this direction. “Some time ago master bakers throughout the Wairarapa (and N.Z.) were asked to submit to the Government copies of the balance-sheet figures over certain periods and insofar as the Wairarapa district was concerned the following prices were fixed: — “Wholesale prices to depots and resellers, 51 d net. Retail price to public: From bakers and resellers, Gd per loaf, cash ovei’ counter; 7d per loaf, cash and delivered; 71d per loaf, booked and delivered. “In view of the statements that have been made in the Press by the Resellers’ Association regarding profits made by master bakers, I feel that the public should be made fully conversant with the position. Up to the present master bakers sold a very small proportion of their turnover’ to bread resellers at 5Jd per loaf. A large proportion of their sales, therefore, was based on a margin of lid per loaf delivered for cash and 2d per loaf delivered and booked. The bakers are now faced with the position that a large proportion of their turnover will be sold to resellers at s£d per loaf net and a small proportion will be sold at 6d per loaf cash over the counter. This loss in margin more than offsets the reduced running costs of vans and savings in wages. It should be apparent, therefore, that any extra margin allowed to resellers should not be passed on to the master bakers. The Government, in fixing the price of bread, has satisfied itself that the margin of profit made by the bakers is a reasonable one.

“Up to the time of making this statement to the Press, I have received no official intimation from the resellers as to. their decision regarding the sale of bread. The public, therefore, is asked to prepare itself to collect supplies of bread from the bakers as from tomorrow, should the reply from the Bread Resellers’ Association! indicate that they are adhering to their recent resolution.” RESELLERS’ STAND REDUCTION IN WHOLESALE PRICE WANTED. DECISION TO DISCONTINUE SALE. The Masterton Bread Resellers’ Association met yesterday, the president. Mr J. Watson, presiding. Mr W. V. Madden, secretary of the Masterton Master Bakers’ Association, was present and addressed the meeting. The following statement. was endorsed by the meeting: “We, the undersigned, hereby petition for a reduction in the wholesale price of bread (fancy included). We ask for an extra jd per 21b loaf, making the wholesale price to resellers -5d per 21b loaf. If this Jd reduction has not been complied with on or -before tomorrow

(January 20) we shall be reluctantly compelled to discontinue the reselling of bread.” Mr Watson said that they had not asked for an increase in the retail price but a reduced wholesale price. Mr Madden explained that he was in no way responsible for a suggestion that the retail price of bread might be increased. It was agreed to notify each baker of the decision of the association. Mr Falconer was appointed secre-tary-treasurer and Mr Esler delegate.