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1934-35-36.

THE PARLIAMENT OF THE COMMON·WEALTH OF AUSTRALIA.

ROYAL COMMISSION

ON THE

WHEAT, FLOUR AND BREAD INDUSTRIES.

THIRD REPORT.

Presented by Command; ordered to be printed, 1st April, 1936.

[Cost o/_Paper.- Preparation, not given ; 89G copies; approximate cost of printing and publishing, £230.]

P rinted and Publi shed for t h e GoVEitNii'!.EN 'l' ilf t h e of A u sTRALIA by

L. F. JOH NSTON, Co mmonwealth Government Printer, Canberra.

No. 233.-F.403.-PRICE 8s. 4n.

COMMONWEALTH OF AUSTRALIA.

GEORGE THE FIFTH, by the Grace of God of Great Britain, Ireland and the British Dominions beyond the Seas King, Defender of the Faith, Emperor of India.

To Our Trusty and Well-beloved :

GREETING:

SIR HERBERT WILLIAM GEPP, Knight, Consultant on Development to the Commonwealth Government; THOMAS STANLEY CHEADLE, Esquire, Pastoral Company Director;

CHARLES WALTER HARPER, Esquire, Company Director;

EDWARD PATRICK MICHAEL SHEEDY, Esquire, Fellow of the Institute of Chartered Accountants (Australia), Fellow of the Society of Accountants and Auditors (England) ; and PROFESSOR SAMUEL MACMAHON WAD HAM, M.A., Professor of Agriculture, University of Melbourne.

\

-:\.T HEREAS by the Constitution of Our Commonwealth of Australia it is provided (inter alia) that the of Our _said ll' Commonwealth may make laws for the peace, order and good government of Our said Commonwealth with respect to taxatiOn : AND WHEREAS by the Constitution of Our said Commonwealth the Parliament of Our said Commonwealth has exclusive power to make laws for the peace, order and good government of Our said Commonwealth with respect to bounties on the production or export of goods:

AND WHEREAS questions have arisen with respect to the payment of bounties for the assistance of wheat-growers and with respect to the effect of taxation under the laws of Our said Commonwealth upon the industries of growing, handling and marketing wheat, manufacturing flour and other commodities from wheat and manufacturing, distributing and selling bread:

NOW THEREFORE WE do by these Our Letters Patent, issued in Our name by Our Governor-General in and over Our Commonwealth of Australia, acting with the advice of Our Federal Executive Council, and in pursuance of the Constitution of Our said Commonwealth, the Royal Commissions Act 1902-1933, and all other powers him thereunto enabling, appoint you to be Commissioners to .constitute a Commission to inquire into and report upon the economic position of the industries of growing, handling and marketing wheat, manufacturing flour and other commodities from wheat, and manufacturing, distributing and selling bread:

• AND WE APPOINT YOU the said SIR HERBERT WILLIAM GEPP to be the €:hairman of Our said Commission: AND WE DIRECT that, any one or each of you Our said Commissioners, together with any other one of you Our said Commissioners-( a) may, if so directed in writing by the Chairman of Our said Commission after consultation between all of you Our said

Commissioners, inquire into and take evidence upon any matter entrusted to you Our said Commissioners by these Our Letters Patent-(i) either as to the whole or any part of that matter; or (ii) in respect of any State or part of the Commonwealth, as specified in the said direction; (b) shall, for all purposes relating to the taking of evidence in pursuance of any such direction, constitute a quorum; and

that the Chairman of Our said Commission may, if and when he thinks proper, sit with and take part in the proceedings of any two of you Our said Commissioners, when taking evidence in pursuance of any such direction;

Provided that all of you Our said Commissioners shall report upon each matter entrusted to you by these Our Letters Patent;

AND WE REQUIRE YOU with as little delay as possible to report to Our Governor-General in and over Our said Commonwealth the result of your inquiries into the matters entrusted to you by these Our Letters Patent :

IN TESTIMONY WHEREOF WE have caused these Our Letters to be made patent and the Seal of Our said Commonwealth to be thereunto affixed. -

WITNESS Our Right Trusty and Well-beloved Counsellor, Sm IsAAC ALFRED I s AACS, Knight Grand Cross of Our Most Distinguished Order of Saint Michael and Saint George, Governor-General and Commander-in-Chief in and over Our Commonwealth of Australia, this Twenty-fifth day of January in the year of Our Lord One thousand nine hundred and thirty-four, and in the twenty-fourth year of Our Reign.

By His Excellency's Command, J. A. LYONS, Prime Minister.

ISAAC A. ISAACS, Governor-General.

Entered on record by me, in Register of Patents, No. 60, page 136, this twenty-fifth day of January, One thousand nine hundred and thirty-four. F. STRAHAN.

PREFACE

SECTION

TABLE OF CONTENTS .

. THE ECONOMIC POSITION OF THE BREAD BAKING INDUSTRY. I.-PROGRESS OF BAKING AS A CRAFT AND ITS ECONOMIC IMPLICATIONS

(a) Introductory

(b) Improvements in the basic materials of baking

(c) The mechanical equipment of bakeries (d) Baking ovens (e) General observations ..

P£GE.

5

9

9

9

11 12 15

SECTION II.-THE STATISTICAL DATA REGARDING NUMBER ·oF BAKERIES AND EMPLOYMENT IN THE INDUSTRY IN RECENT YEARS 19

SECTION JII.-LABOUR AS A FACTOR IN THE BAKING INDUSTRY 29

(a) The history of the regulation of labour in the Industry 29

(b) The present position of labour regulation in the Industry as regards-(i) Hours of work of bakehouse operatives 31

(ii) Hours of work of breadcarters 33

(iii) Wage rates for bakehouse operatives and breadcarters 34

(iv) Apprentices and improvers 36

(c) Conclusions . . 36

SECTION JV.-THE REGULATION OF THE BREAD INDUSTRY IN RESPECT TO MATTERS OF HYGIENE-

SECTION

(a) The nature and scope of the legislative regulations · 41

(b) The extent to which the regulations are observed 41

(c) Dough mixing 42

(d) Wrapping 42

(e) Delivery 42

(f) Shop Sales 42

(g) Conclusions

V.-COSTS OF PRODUCTION, DISTRIBUTION, AND ADMINISTRATION, CAPITALIZATION, AND THE FINANCIAL RETURN FROM THE INDUSTRY-(a} Procedure adopted in making the investigations

(b) Costs of production, distribution and administmtion­

(i) Pr?cedure adopted in analysing costs (ii) The number of loaves produced from one ton of flour (iii) The price of flour as a factor in bakers' costs (iv) The average cost of the 2-lb. loaf in the metropolitan areas of the mainland

States, and in the State of Tasmania (v) The average cost of the 2-lb. loaf in country districts of Australia (c) Capitalization of the bread-baking industry (d) The financial return from the Industry-

(i) The prices actually received for the 2-lb. loaf (ii) The margin of profit per 2-lb. loaf in the metropolitan areas and in Tasmania (iii) The margin of profit per 2-lb. loaf in the rural areas of mainland States

(iv) A survey of profit and loss accounts of certain bakeries during the years, 1931, 1932 and 1933 (e) Summary of the financial position of the Industry

43

46

48 50 54

58 70 73

79 87 92

94 97

8EOTION VJ.-FACTORS GOVERNING THE ECONOMIC STABILITY OF' THE INDUSTRY.. 101

(a) The position of the industry as described by those engaged in it 101

(b) ComJ;>etition within the Industry 101

(c) Price-cutting in ita relation to profit margin in the bread-baking trade 102

(d) Methods by which the legal enactments governing employment are avoided or infringed Ill (e) Shop Sales and special price-cutting methods 112

{j) General consideration of the problem of deliveries 113

TABLE OF CoNTENTs-continued.

PAGE.

SECTION VJl.-REACTIONS OF THE INDUSTRY TO COMPETITION 127

(a) Protective trade organizations . . 127

(b) Fixation of minimum prices 128

(c) Methods of fighting or controlling competition 129

SECTION VJII.-0THER FACTORS OF IMPORTANCE TO THE INDUSTRY-(a) The course of prices of flour, bread, and wages in each State 135

(b) Consumption of bread 136

(c) The quality of Australian bread. . 138

(d) Relationship to sidelines 145

(e) The problem of scientific and technical education within the Industry 146

SECTION JX.-THE RESULTS OF INQUIRIES OVERSEAS . . 153

SUMMARY .AND FINDINGS 155

GENERAL CONSIDERATIONS LEADING UP TO RECOMMENDATIONS 160

RECOMMENDATIONS 162

SCHEDULE A.-SPECIFICATIONS OF BAKERY PREMISES . . 165

APPENDIX A.-Regulation of labour conditions of bakers and breadcarters in New South Wales under Industrial Arbitration Laws (by Mr. C. J. Bellemore, Under-Secretary of the Department of Labour and Industry in New South Wales) 167

APPENDIX B.-Overtime rates for bakers and breadcarters 177

APPENDIX C.-Summary of State Regulations governing bakers' apprentices and improvers 180

APPENDIX D.-Questionnaire issued to bakers 182

APPENDIX E.-Some observations on gluten, maltose, diastase, and strength in wheat and flour by L. W. Samuel, Ph.D. (London) 188

APPENDIX F.l.-Royal Commission of Food Prices 1925 189

APPENDIX F.2.-Canadian investigation under Combines Act 192

APPENDIX F.3.-Canadian Royal Commission on Price Spreads, 1935 195

ROYAL COMMISSION ON THE WHEAT, FLOUR AND BREAD INDUSTRIES.

TI-IIRD REPORT.

To His Excellency Brigadier-General the Right Honourable Lord Gowrie, V.C., G.C.M.G., O.B., D.S.O., Governor-General and Commander-in-Chief in and over the Commonwealth of Australia. ·

MAY IT PLEASE YOUR EXCELLENCY :

This Commission has already submitted Reports upon the economic position of the industries of growing, handling and marketing wheat. Upon the completion of its inquiries into the industries named above, the Commission proceeded to inquire into the economic position of the industries of manufacturing flour and other commodities from wheat, and manufacturing,

distributing and selling bread. In the course of its investigations in regard to flour the Commission has necessarily had to consider matters which relate entirely to trade and conrmerce within a State and also matters of trade and commerce with other countries and among the States.

In relation to the bread industries, however, matters in relation to trade and conrmerce with other countries and among the did not arise. In the fulfilment of the directions to it under the Letters Patent issued on the twenty­ fifth day of January, 1934, and in order that its recommendations may be as helpful as possible to the States, the Commission has necessarily had to consider the legislation enacted by the legislatures of the several States, the judicial det erminations of State Courts and the

administrative acts of State Departments and Instrumentalities. The Commission now presents to Your Excellency this Third Report which deals with the economic position of the industries of manufacturing, distributing and selling bread. The Report embraces the following matters, namely:-

(i) The progress of baking as a rraft and its economic implications. (iii) The statistical data regarding the number of bakeries and employment In the industry in recent years. (iii) Labour as a factor in the baking industry . (iv) The regulation of the bread industry in respect t o matters of hygiene.

(v) Costs of production, distribution and administration, capitalisation, and the • financial return from the industry. (vi) Factors governing the economic stability of the industry. (vii) Reactions of the industry to competition. (viii) Other factors of importance to the industry.

(ix) The results of inquiries overseas.

THE BAKING INDUSTRY.

SECTION I.-THE PROGRESS OF BAKING AS A CRAFT AND ITS ECONOMIC IMPLICATIONS.

(a) I N TRODUCTORY

(b) IMPROVEMENTS IN THE BASIC MATERIALS OF BAKING

(c) THE MECHANICAL EQUI PMENT OF BAKERIES

(d) BAKI NG OVEN S

(e) G E NERAL OBSE RVATIONS

9

9

11

12

15

2 9

I.-THE PROGRESS OF BAKING AS A CRAFT AND ITS ECONOMIC IMPLICATIONS. (a) INTRODUCTORY. 1. The origin of the custom of making bread-like materials is lost in antiquity but, doubtless, in early times the work was carried out in the individual household. It is reasonable to assume that the results were not invariably uniform or satisfactory; consequently, there was room for the early development of a craft of baking. This position had certainly been reached in Roman times, for the written record shows that the trade in bread was subject to certain regulations in order to avoid exploitation of the consumers. There were no very great innovations in the

process until the latter half of the eighteenth century; but from that time onward, a large number of changes occurred in the material used, in the plant and equipment available for the baker's use, and in the regulations controlling the operations of the trade. Each of these innovations exercised some modifying influence upon the economic position of the industry.

2. To-day, in the larger Australian cities there are examples of baking establishments which are representative of many of the stages in the evolution of the industry. In a sense, each type of bakery is in competition with each other type and it becomes necessary to consider the salient features of each baking system to obtain a true picture of the economic position of the industry. The regulations controlling the trade, and the workers engaged in it, are important

because they affect the different methods of baking in different ways and to different extents. 3. A brief description of the processes which constitute bread-making is a necessary starting point for a clear understanding of the problems of the industry. The initial process consists of mixing the requisite quantities of flour, water, yeast, salt and, in some cases, certain other materials such as "improvers" and dried milk, and allowing the resultant dough mixture to stand for a determined number of hours whilst the yeast, acting upon the sugary constituents

of the flour, sets up a mild fermentation. This fe rn1entation produces carbon dioxide gas, which, being more or less evenly distributed, results in a "leavening" of the dough. At the same time, changes in the physical nature of the starch and gluten of the flour occur. After the dough has thus " worked " for a suitable period it is divided into pieces of a size necessary to produce

the required loaf. Each piece is then " kneaded " in order to ensu:r;e uniformity of composition · and then held for a period under appropriate conditions of moisture and temperature during which further fermentation takes place; this process is known as "proving". When the "proving" period is finished the dough is again ,kneaded, shaped and "proved", and when the right stage of "proving" has been reached the dough is baked. After baking is completed the loaves are put on racks to cool prior to distribution.

4. The increase in scientific and technical knowledge has affected the art of baking in three major directions, viz., in the characteristics of the raw materials such as flour and yeast, secondly, in the degree of control over the various processes, and, thirdly, by a more or less complete mechanization of the operations. Changes in the basic commodities are of some economic

importance because they have, to a certain extent, diminished the amount of technical skill necessary. Changes in the direction of mechanization have been profound, for, whereas in the early days every one of the operations described in the preceding paragraph was carried out by hand, to-day it is possible to install a plant into which the raw materials can be fed at one end

and the baked bread wrapped for delivery received from the other. Between the manual and the completely mechanized system, a wide range of intermediate methods is available. 5. Further, as the baker usually delivers the bread and the costs of such delivery are a relatively large fraction of his total cost, the introduction of motor transport has had some effect

on the economics of each individual business. ·

(b) IMPROVEMENTS IN THE BASIC MATERIALS OF BAKING. 6. Flours produced from different types of wheat possess different bread-making qualities. These differences are partly inherent in the botanical variety of the wheat and partly due to the climatic and soil conditions under which the wheat is grown. Therefore, millers must blend their wheats for gristing in order to maintain a regular standard of flour quality suitable and

satisfactory to the baker. For instance, Tasmanian wheat whilst comparatively unsuitable for bread-making produces a high-grade biscuit flour. Therefore, most of the Tasmanian flour is exported to the mainland, and the requirements of Tasmanian bakers are by the importation of flour and wheat from the mainland States. The purchase of h1gh-grade gluten

wheat by millers at a premium over the f.a.q. price is extending throughout the Commonwealth. 7. The baker looks for certain qualities in the flour which he uses for making bread. He expects it to be free from taints, "ropiness" and from insects. (" Ropiness " is a physical condjtion which sometimes develops in flour owing to infection by certain bacteria.) He expects

uniformity of texture and colour and of moisture content. He requires it to "work" effectively

10

when mixed into dough. (Technically, this means that the flour must contain sufficient diastase to produce enough sugar to provide the yeast with sufficient food to produce an adequate amount of gas during the fermentation.) The flour must impart certain characteristics to the dough during bal.-ring. These characteristics are of a complicated nature and are associated with the quantity and quality of the protein in the flour. The baker is anxious that the dough during baking shall "rise" into a loaf of large size and uniform te;xture, with a nice crust, and this result is largely dependent upon the protein in the flour. The flours gristed from strong · wheats produce a loaf which is both large in volume and sturdy in shape, while those from

"weak" wheats tend to produce relatively flat, unattractive-looking loaves of relatively small volume. Some flours absorb more water during the dough-making process than others, with the result that the number of loaves produced per sack of flour is relatively larger. A specially high-grade flour as used for blending purposes may be expected to give between 112 and 115 2-lb. loaves per 150 lb. of flour whilst the present average Australian flour produces approximately 102 loaves frorn the same quantity. The economic significance of this point is discussed later in paragraphs 169 to 189.

8. During the last hal£ century, the bread-making industry has seen a great change in respect to yeast. In the early days, the yeast required for bread-making was made by boiling up hops with smne sugary or starchy material. The hops usually introduced various strains of yeast species and the conditions under which the infusion was made nat-qrally favoured the rapid multiplication of those particular strains which were capable of doing the kind of work which the yeast necessary for bread-making had to perform. When once a yeast of a satisfactory type had been obtained it was grown in vessels containing various mixtures, the basis of which was usually boiled potatoes and water. Prolonged boiling had rendered this nutrient material reasonably sterile so that on the addition of the yeast decoction the particular strain multiplied rapidly. The vessels in which this operation was carried out were kept in a warm place, so that the yeast might grow effectively, and were covered in order to prevent the access of dust and foreign organisms. This "spontaneous" yeast is still used in many bakeries. Its _successful cultivation and the maintenance of a regular standard requires considerable care and judgment. As long as this was the only method by which bakers could obtain their yeast, the baker who ·knew his trade and understood the proper management of a yeast culture had a definite advantage

over the uninitiated newcomer. The production of yeast in quantities sufficient for commercial bakehouse purposes is not easy and if care is not taken considerable losses of bread may occur. 9. During the last half century, considerable scientific investigation has been devoted to the study of the yeast plant. These investigations have shown that there are various strains

within each species of yeast and that some of them are much more suitable and effective than others. The merit of a scheme whereby a standardized yeast could be obtained and sold to bakers was considerable. Accordingly, companies or firms started to supply a yeast which is standard in its operations and which, when used under a given set of conditions, will produce a regular and dependable result. The baker has no longer either the trouble of preparing his yeast or the anxiety as to whether it will retain its character. He is no longer obliged to learn the mysteries of a special craft.

10. This change has made the regular production of high quality bread a simpler operation. It has become practicable for men to enter into competition with established bakeries when they themselves have considerably less skill and experience than would have been required half a century ago.

11. During recent years the use of chemical substances known as " improvers " has spread widely. These improvers are twofold in nature. Some of them improve the effectiveness and reliability of the yeast, whilst others have a definite effect upon the behaviour of the protein in the gluten of the flour. To a certain extent improvers compensate for the deficiencies in flour from weak wheats. The net result is to increase somewhat the volume of bread from " weak " flours and, consequently, the number of loaves which can be produced from a sack of flour. In Australia, the production of these improvers is for the most part in the hands of a few firms. The use of improvers is almost universal amongst bakers; the balance of opinion in the trade and technological experience of their actions on flour and dough favour their use. In the interests

of public health, certain limits should be set to the nature of the chemicals which may be used for this purpose and these are discussed in Section VIII. c. 12. Other substances are added to improve the palatability of the bread. The use of salt falls into this category and is older than history. Some bakers find that the addition of dried milk powder has a beneficial effect. Others use small quantities of malt or fatty substances. Numerous other ingredients are also employed in the production of different lcinds of fancy bread.

13. In North America the public is provided with a wide range of different breadstuffs which are usually obtained by altering the primary dough mixture. Whether a wider introduction of special lines would induce the Australian public to increase its consumption of breadstuffs

11

should be investigated by the industry. At present the Australian people exhibit little interest in the quality of bread. They regard bread merely as " bread "-a dull and uninteresting associate for more tasty foods. A certain amount of general interest might be aroused in connexion with this matter and thereby people might learn to descriminate between good and indifferent bread.

Under such circumstances, the skilled baker, who is a true craftsman, would stand a better chance in competition with those who are producing a semi-standardized article of no particular quality. 14. Australians who are interested in the evolution of industry generally might well recognize the necessity for forming and expressing defihite opinions on the subject of quality.

Thereby they would automatically exert a beneficial 15. There is need for the exertion of such an influence for, a] though bread of high quality was shown to the Commission in all States, on the other hand undeniably poor quality bread was seen by the Commission in too many instances. The people are entitled to expect this important item in the dietary scale, not only at a reasonable price, but at a proper standard of quality and

palatability. There is room for substantial improvement in the quality of bread supplied to the community, and there should be steady insistence on behalf of the community until such improvement has been made and sustained. The existing situation reflects in some cases a lack of skill in the preparation of the article, and in others the deliberate production of a cheap product under stress of competition. Whether one or other or both of these factors contribute, the feels that the industry should be forced to a realization that only a high-class

article should be manufactured and sold. The matter is one for action by all parties interested in the welfare of wheat, flour or bread industries. It would therefore be best dealt with by a joint permanent research committee to which the Commission will refer in its final report.

(c) THE MECHANICAL EQUIPMENT OF BAKERIES. 16. In those parts of Australia visited by the Commission there are numerous bakeries operated entirely by hand. The actual number of such businesses is unknown because the statistical record of bakehouses is far from complete. Although these hand-operated bakeries

are numerous, their output is probably not a very large proportion of the total Australian production. Their influence on the economics of the industry is important, particularly in the main centres of population. 17. As a rule, the first stage in the mechanization of a bakery consists of the installation

of a machine for mixing the dough. In their simplest form these machines contain mechanically­ operated blades, which mix the water, flour, yeast and salt until a dough of fairly even consistency is obtained. There are various types of dough-mixers and many of them have additional refinements such as flour sifters and reservoirs in which the water is held at the correct temperature.

18. The advantages of mechanical dough-mixing are numerous. The somewhat laborious task of making the mixture in a trough over which the operative has to lean whilst exerting considerable physical effort is avoided. The hygienic aspects of eliminating human contact with the dough at this stage are discussed later in paragraph 112. A flour sifter ensures that the dough will not contain the fragments of bag and twine which inevitably find their way from

time to time into the mixture when no sifter is employed. The better control of the temperature of the water is significant because the temperature of the dough affects the action of the yeast considerably. 19. Many· bakers expressed the opinion that mechanical dough-mixers should be an integral

part of bakehouse equipment wherever practicable. The smaller machines are not expensive and the cost of the power required to operate them is not large. In the case of very small bakeries with a low output the installation of such a machine might appreciably increase costs, but this outlay should not be allowed to outweigh the hygienic considerations.

20. In well-equipped bakehouses special rooms are set apart for the purposes of controlling the conditions of temperature and humidity during the period of fermentation. The necessary automatic machinery is provided so that a fairly narrow range of temperature conditions within which yeast works best can be maintained. A comparatively high humidity in the atmosphere prevents evaporation of moisture from no crust. on the .of. the

dough is formed. In the absence of such conditwrung . roon::-s It :s to avmd vanatwns in the quality of the bread, howeyer carefully the are watched and

adjustments made. so far practwable.. '!he use of conditwmng rooms ensures a better quality of bread with a nnrumum of variation. 21. The dough is next into. lumps of sufficient t_o .make the requ!red loaves. In manual bakehouses this process IS carried out on tables, the IndiVIdual lumps bmng weighed on scales. In mechanized bakeries machines are used to carry out the process of division and

weighing. ·

12

22. The dough is then " rounded " or handed up, a process which can be' carried out effectively in machines designed for the purpose. The more modern machines are apparently entirely satisfactory in this respect and avoid too rough a treatment of the dough which sometimes took place in the earlier models. One other factor of value in mechanization at this stage is that the chance of the dough picking up foreign materials is eliminated.

23 . In mechanized units the first " proving " process is carried out by means of a conveyor with canvas pockets, the whole being contained in an overhead cabinet . ,

24. After about a quarter of an hour in the first prover, the dough is kneaded and moulded . and then placed in tins or finally shaped according to the type of loaf. Machines are available for this process and have been installed in some bakehouses in Australia. 25. During the second "proving" the loaves should be kept for about 30 minutes in an

atmosphere controlled as to temperature and humidity. In Australia the conditions under which this second " proving " is carried out vary from t hose which are completely satisfactory to those which are the antithesis of the necessary requirements. It is no wonder that the quality of the bread made from the same kind of flour varies considerably.

26. Figure I . kindly prepared at the Commission's request by Mr. T. Hatton, Managing Director of Baker Perkins Pty. Ltd., ill ustrat es diagramaticaJly the layout of a mechanized bakery. The letters designating the various pieces of machinery on this figure have the following significance :-

(a) Flour Blending, Elevating, Sifting and Conveying Machine.-This machine blends the flour, aerates, sifts and conveys it to-(b) Automatic Flour Weighing Machine.-This machine weighs each batch of flour accurately before the flour is passed to the movable dough pans. (c) Mixing and Kneading Machines. (d) Automatic Water Measuring and Tempering Apparatus.-This machine weighs

the water before it is run in to the kneader. (e) Dough Pan with Dough, maturing in dough room. (j) Elevating or Tilting Machine.-This machine locks the dough pans in a saddle and tilts the pl:tns so that the dough is discharged direct to the dough hopper

below.

(g) Air Conditioning Unit.-This unit keeps the dough room at constant degrees of temperature and humidity. (h) Dough Hopper. (j) Dough Divider.

(k) Conical Type Handing-up Machine. (l) First Prover. (m) Multi-spindle Moulding Machine. (n) Panning_ Machine.-This machine rol_ls the 2-l?. dough J;lie?es out to an.y

reqUJied. It can also be fitted with a deVIce for splitting a 2-lb. p1ece mto t wo single 1-lb. pieces. (p) Final Prover. (r ) Swingtray Type . Travelling Oven.

(d) BAKING OVENS.

27. The essential features of the baking oven are that the heat shall be reasonably uniform on all sides of the material which is being baked, and, further, that the t emperature shall be capable of effective control. If temperatures become too high, not only is the bread charred on the outside, but there is considerable loss of weight and consequently some danger that the loaves may be under the standard weight. If t emperatures are too low the process is too slow, and the loaf will be inferior in quality. .

28. In early days the ovens were made of fire-brick and the fuel was burnt inside the oven until it had become heated t o the proper temperature, which was judged by the skill of the baker, aided by a few simple tests which had been developed as a result of experience. Then the remaining fuel was removed and the loaves were placed in the oven and baked.

29. Numerous improvements have been introduced into the design of ovens. The first was the development of the Scotch oven ; t he fuel is burnt in a furnace built at the side of the oven and the hot gases pass through the oven. Subsequently, ovens were built in which the heat was applied externally both above and below the actual oven itself, so that the gases from the fuel did not come into contact with the bread. Still further improvements in many directions have been introduced in recent years. In some cases the heat is conveyed to the oven through a series of steam pipes, the ends of which are heated in a furnace adjacent to the oven, the pipes or tubes being sealed and a high degree of super-heat thereby attained. Some electric ovens are also in use.

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'

15

30. In some types the steel floor of the oven is constructed so that it can be withdrawn from the baking chamber and the full batch of bread inserted at the one time. The main objection to this particular type is that the heat radiated from the movable tray affects the operatives whilst they are removing the bread from the tray after withdrawal from the oven.

31. In the continuous-baking ovens the bread is carried firstly through the proving chamber and then through · the baking chamber on a continuous moving steel conveyor, the heat being applied in most ·cases both in the automatic and semi-automatic ovens by means of the super-heated steam pipes mentioned above.

32. Wood fuel is almost invariably used in the Scotch type of oven. Wood, coal, coke, briquettes or oil can be used in ovens where the fuel gases do not come in contact with the bread. , 33. In all the latest types of ovens thermometers or pyrometers are provided so that the temperatures in the various parts of the oven chamber can be observed.

(e) G;ENERAL OBSERVATIONS.

34. The economics of automatic and semi-automatic baking equipment are largely influenced by the size and type of business. The capital expenditure is considerable and, unless the costs of labour or materials involved in production can be reduced to an extent sufficient to pay the interest and depreciation charges on this capital, there is no financial advantage in

mechanization. 35. At first sight one of the advantages of a completely-mechanized plant appears to be that it could be run continuously through the major part of each twenty-four hours. This, however, proves to be generally incapable of realization because delivery can only be effected

during part of the daily period and, consequently,. a continuous system of production would involve storage and double handling in the bakehouse for at least half the output. Bread is a bulky product and cannot be stored effectively unless the loaves are spaced from one another. Also, as at present made in many parts of Australia, bread loses its fresh crispness rapidly and is

not as saleable when 16 to 24 hours old as it is when new. Consequently, under existing-circumstances, complete mechanization when applied to the baking trade must lose some of those economies which it achieves in other industries which can be 1nade to operate continuously. 36. On the other hand, the mechanization of baking op erations has contributed towards the improvement of the· conditions under which the operatives work, whilst it has diminished

the amount of skill required. It has also improved the hygiene of the industry. These are definite advantages and should be recognized by all parties concerned including those engaged in safeguarding the conditions and wages of labour. 37. The standards of industrial regulation existing in the industry have been evolved

gradually. They have been built up to meet conditions which .are in process of change with the introduction of more or less completely-mechanized plants. There has been an attempt to adapt such industrial requirements to the new circumstances which have arisen and which will, presumably, continue to arise, but the attempt has not been entirely successful.

38. The benefit or loss to be derived or suffered from the complete mechanization of this or any other industry is, of course, a. highly controversial subject. It is of such importance in this industry, however, that the Commission has considered it expedient to deal with it in fuller detail in a later section of this Report.

29vl

SECTION II.-THE STATISTICAL DATA REGARDING THE NUMBER OF BAKERIES AND EMPLOYMENT IN THE INDUSTRY IN RECENT YEARS.

19

11.-THE STATISTICAL DATA REGARDING NUMBER OF BAKERIES AND . EMPLOYMENT IN THE INDUSTRY IN RECENT YEARS. 39. The accurate investigation of the history of the industry in each State during the last few years has been a matter of some difficulty. The sources of information available were the States' Statistical Registers compiled by the Statisticians, and the Reports of the Chief Inspectors of Factories. The first difficulty was in the gTouping of cake and pastry manufacture with bread­ making. This grouping is a logical one and no criticism of the procedure is here implied ; the fact that it was a complication, however, remains. A more serious difficulty arose from the fact that the Statistical Bureaux afford information about " factories " rather than "bakehouses" and that a bakehouse only becomes a factory when four or more persons are employed in its operations, or when power is used to drive the machinery. Consequently, a two-1nan bakehouse with a dough mixer driven by electric power is included in the returns, while a three-man establishment worked entirely by hand is omitted. In the Statisticians' figures en1ployers when engaged in the bakehouse are included in the total" number of hands employed," and breadcarters are excluded. All bakehouses where bread is made for sale must be registered, so that the returns of the Chief Inspectors of Factories are more satisfactory in this respect ; in addition, they give some subdivision of the data into district a'reas in certain cases. Such returns, however, do not

usually give information about the magnitude of the operation concerned. This can only be gleaned from the Statistician's figures. Paragraphs 40 to 72 show the history of the industry during the last few years as judged from the available data.

40. In New South \Vales the returns of the Department of Labour and Industry show the number of bakehouses both in the metropolitan area and in the whole of the State.

41. Table 1 shows for the metropolitan area and for the whole State the number of bread and pastry bakehouses for each of the years 1927 to 1934.

TABLE 1.

- 1927. 1928. 1929 . . 1930. 1931. 1932. 1933 . . 1934.

Metropolitan .. 546 527 610 759 804 876 900 931

Whole State .. 1,418 1,376 1,537 1,774 1,757 1,864 1,907 1,996

42. Table 2 shows the number of hands employed in these bakehouses.

TABLE 2.

- 1927. 1928. 1929. 1930. 1931. 1932. 1933. 193•1.

Metropolitan .. 2,459 2,443 2,724 2,746 2,484 2,580 2,696 2,831

Whole State .. 4,246 4,218 4,533 4,700 4,213 4,348 4,502 4,767

43. The State's Statistical Registers record the number of bread, cake and pastry" factories" grouped according to the number of persons engaged !n them and also the number of persons engaged in each factory group. The data are set out In Tables 3 and 4.

TABLE 3.

NUMBER OF FACTORIES.

- 1927-28. 1928- 29. 1929-30. 19 30-31. 1931-32. 1932-33. 1933-34.

Less than 4 persons . . .. 39 56 68 103 122 135 165

4 persons . . .. . . 50 50 69 65 76 78 80

5 to 10 persons . . .. 136 159 153 139 151 161 161

11 to 20 persons . . .. 42 46 49 39 40 37 40

21 to 50 persons .. . . 14 12 15 19 13 11 11

51 to 100 persons .. . . 3 3 1 2 3 4 3

101 and over .. . . 2 2 3 2 1 1 1

Total .. . . 286 328 358

I

369 406

I

427 461

F.403.-2

20

TABLE 4.

NUMBER OF HANDS EMPLOYED.

-

I 1927-28. I

1928-29. 1929- 30. 1930-31. 1931-32.

I

1932-33. 1933-34.

Less than 4 persons . . .. 94 140 177 249 286 325 407

4 persons .. . . . . 200 200 276 260 304 312 320

5 to 10 persons . . .. 931 1,065 1,013 912 975 1,053 1,074

11 to 20 persons . . . . 578 687 693 533 558 548 584

21 to 50 persons . . .. 388 355 436 522 364 281 324

51 to 100 persons .. . . 183 199 67 132 208 231 204

101 and over ' . . . . 449 451 536 381 224 245 248

Total ..

··I

2,823 3,097 3,198 2,989 2,919

I

2,992 3,161

-

44. Both sets of data show a very marked increase in the number of establishments, but this increase has been greatest in the case of the small bakeries. There has been a relatively small increase in the number of persons employed. 45. For Victoria Table 5 shows the number of bakehouses (bread) in the years 1928-1934, as reported by the State Secretary for Labour. It shows the marked increase in the number of such establishments in the Melbourne, Ballarat and Geelong areas between 1928 and 1933.

TABLE 5.

District.

I

1928. 1929. 1930. 1931. 1932. 1933. 1934.

Metropolitan .. . . 229 235 252 285 293 329 308

Ballarat . . .. . . 18 22 19 23 24 26 25

Bendigo . . . . .. 20 22 17 20 18 20 19

Geelong . . . . .. 19 21 20 22 25 24 25

Warrnambool .. . . 7 6 3 6 8 6 9

Other Districts .. . . 568 549 594 551 623 655 643

'

Total .. . . 861

I

855 905 907 991 1,060 1,029

46. Data collected by the Government Statist is presented below, and therein only factories employing four or more men or using power are included. Table 6 shows the number of bakery " factories " in Victoria grouped according to the. number of hands employed from 1927-28 to 1933-34. It reveals that there has been a steady increase in the number of small baking establishments since 1928- 29, while there was a decline in the numbers employing 4, 5 to 10, and II to 20 hands, and some increase in the "21 to 50" hands group.

TABLE 6.

- 1927- 28. 1928-29. 1929-30. 1930-31. 1931-32. 1932-33. 1933-34.

Less than 4 persons . . .. 138 137 152 168 187 221 225

4 persons . . . . .. 119 82 84 79 78 88 95

5 to 10 persons . . .. 209 205 176 172 167 156 167

11 to 20 persons . . .. 38 49 35 35 37 28 31

21 to 50 persons . . .. 11 10 13 12 11 14 14

51 to 100 persons . . .. 3 3 3 2 2 2 3

101 and over . . . . 1 I 1 .. . . . . . .

Total . . .. 519 487 464 468 482 509 535

47. A detailed comparison of the preceding tables is not quite satisfactory because the facts are collected at different times of the year and in different ways, but the general tendency towards an increase in numbers of bakeries recorded since 1929 is apparent in both tables. The size of those bakeries which have led to the increase is important ; the difference between the figures reported by the Department of Labour and those of the Government Statist is a rough measure of the number of bakehouses which employ fewer than four hands and use no machinery.

The differences between these figures-for the years 1928 to 1934 respectively-are 342, 368, 441, 439, 509, 551 and 494. These figures illustrate the marked growth in the number of small bakeries between 1928 and 1933.

21

48. Some of the changes showfl: in Table 6 may be due to men being put off during the depression and causing a transference of establishments from one group to another; the re-equip1nent of some bakeries with more machinery and larger plants may have altered the data to some extent. The figures for the number of men employed in the bakehouses belonging to the size groups of Table 6 are given in Table 7.

TABLE 7.

-

I

1927- 28 . 1928- 29.

I

1929- 30. 1930- 31.

I

193 1-32. 1932-33. r 1933-34.

--

Less than 4 hands . . .. 307 321 323 394 418 500 487

4 hands . . .. . . 476 328 336 31 6 312 352 380

5 to 10 hands .. . . 1,390 1,336 1,180 1,129 1,096 1,045 1,085

11 to 20 hands . . .. 552 655 463 489 530 405 438

21 to 50 hands . . .. 349 310 355 405 378 428 383

51 to 100 hands .. 181 188 186 163 144 153 223

101 and over .. . . 112 110 108

I

. . . . . . . .

Total . . .. 3,367 I 3,248 2,951 2,896 2,878 2,883 2,996

49. The statistical data therefore confirm the suggestion that, in general, there has been an increase in the number of small bakeries in Victoria during the last few years and that the larger establishments have been affected either by the closing of a number of t hem, or a contract ion in the number of employees they were able to keep engaged.

50. As regards Queensland the reports of the Chief Inspector of Factories and Shops furnish information segregated according to a number of geographic districts. The factories concerned in baking bread, pastry, biscuits, &c., are grouped together, but those making confectionery are returned .separately.

51. Table 8 shows, for the districts indicated, the number of baking factories during each of the years from 1928-29 to 1933-34. TABLE 8.

-

I

1928-29. 1929-30. 1930-31. 1931-32. 1932-33. 1933-34.

Brisbane . . .. . . 122 126 156 152 165 164

Bunda berg . . .. 14 11 8 9 10 10

Cairns . . .. .. 8 9 6 10 9 11

Charters Towers . . .. 9 8 8 7 7 7

Dalby. . . . . .. 2 2 2 3 3 3

Gym pie . . . . .. 8 8 8 7 8 8

Innisfail . . . . .. 6 7 8 7 7 8

Ipswich . . .. 16 18 22 24 25 28

Mackay . . .. . . 19 19 21 22 25 26

Mary borough . . .. 11 10 12 11 11 12

Mount Morgan .. . . 3 2 3 3 3 2

Rockhampton . . . . 14 17 17 15 15 16

Toowoomba .. . . 13 14 13 11 13 15

Townsville . . . . .. 21 25 24 22 19 19

Warwick . . .. . . 7 7 6 9 7 7

Total .. . . 273 283 314 312 327 336

52. The data suggest that there was a marked increase in the number of bakeries in the Brisbane, Cairns, Ipswich and Mackay districts. 53. The returns of the Registrar-General are shown in Table 9, which shows the number of bread (including cakes and pastry) factories by employment groups.

TABLE 9.

- 1927-28. 1928-29. 1929-30. 1930-31. 1931-32 . 1932-33. 1933-34.

Under 4 persons .. . . 5 9 18 21 27 37 36

4 persons . . . . .. 54 51 40 64 56 56 76

5 to 10 persons . . .. 115 122 122 122 116 109 98

11 to 20 persons . . . . 23 22 31 19 23 17 8

21 to 50 persons . . .. 10 13 9 6 4 6 6

51 to 100 persons . . . . 2 2 2 . . . . . . . .

101 and over .. . . 1 1 1 1 1 1 1

Total .. . . *210 *220 223 233 227 226 I 225

• Includes billcuita .

22

54. In general, the figures for Queensland show a considerableincrease in the total number vf bread factories since 1928-29, but a marked decrease in the number of factories in the groups employing a considerable number of persons. This evidence supports the view that the larger bakeries have been less successful in the face of the increase in numbers of sn1aller establishments. Moreover, the difference between the figures reported by the Department of Labour and those of the Registrar-General indicat e, with a reasonable degree of accuracy, the number of bakehouses which employ fewer than four hands and use no power plant. The differences between these figures for the years 1928-29 to 1933- 34 respectively are :53, 60, 81, 85, 101 and Ill. They illustrate the marked increase in the number of small bakeries during that period.

55. F or South Australia, the returns of the Chief Inspector of Fact ories and Boilers do not include bakehouses in which no paid labour is employed, nor is it necessary to register a business where family labour is solely responsible for its operation. 56. Table 10 sho ws for t he n1etropolitan area of Adelaide (a district cornprising an irregular area of roughly 10 rniles radius), t he number of factories making bread, pastry, &c., segregated according to the nun1ber of hands employed (from data supplied by the Chief Inspector of Factories and St ea1n Boilers, South Australia).

TABLE 10.

I

I

I -I

1928. 1929. 1930. 1931. 1932. 1933. 1!}34.

Number of factories employing I

I not more than-2 employees . . . . 70 66 74 88 88 88 84

2 to 4 employees .. 34 41 47 31 32 26 32

4 to 10 employees .. 23 21 17 20 18 14 19

10 to 20 employees .. 10 11 8 6 6 6 8

20 to 30 employees . . . . .. 3 1 1 2 1

30 to 50 employees .. 3 3 1 2 1 1 1

Total . . .. 140

I

142 150 148 I 146 137 145

I

57. These data show that , whereas t he total number of factories other than one-man and family has not increased markedly during the period 1928 t o 1934, .there has been a increase in the smaller organizations and a di1ninution in those of larger types. 58. Table 11, presenting data derived from the same source, shows for the "Metropolitan Area" of Adelaide the number of employers and employees in factories 1naking bread, pastry, &c.,

during each of the years 1928- 1934. · TABLE 11.

- 1928.

I

192 9. 1930. 1931. 193 2. 1933 . 1934.

Employers working at trade-ill 109 119 126 127 127 132 Males . . . . . . Females . . . . . . 16 18 23 20 8 13 24

Total Employers .. 127 127 142 146 135 140 156

Persons employed-Males-21 years and over .. 426 391 414 406 348 339 356

16 years and under 21 .. 132 137 136 134 141 125 128

14 years and under 16 .. 31 23 16 11 14 13 21

Females-

30 19 25 21 19 18 24 21 years and over .. 16 years and under 21 .. 24 22 19 9 14 7 9

14 years and under 16 . . 4 3 2 1 . . . . 2

Total Employees . . 647 595 612 582 536 502 540

59. These data show a very definite increase in the number of employers actually working, and also a diminution in the number of employees of all t ypes. 60. The returns of the Government Statist deal with factories in which more than four persons are employed or power is used. They apply to the whole of the State.

23

61. Table 12 shows for South Australia the number of " factories " er{gaged in the manufacture of bread, cakes and pastry, grouped according to the number of employees, during each of the years 1927-28 to 1933-34. TABLE 12.

(Data from the Government Statist.)

I

- 1927-28. 1928-29. 1929-30. 1930-31. 1931-32. 1932-33. 1933-34.

Under 4 persons .. . . 17 22 22 23 28 29 33

4 persons .. . . . ·' 4 16 17 14 22 17 -19

5 to 10 persons .. . . 43 34 40 41 39 44 43

11 to 20 persons .. . . 16 13 14 14 12 12 9

21 to 50 persons .. . . 6 7 5 5 4 4 5

Total .. . . 86 92 98 97 105 106 109

62. Table 13 giving the Return of Persons employed In South Australian bakeries as defined by the Statist shows the following grouping:-TABLE ·13.

- 1927-28. 1928-29. 1929-30. 1930---31. 1931-32. 1932-33. 1933-34.

Under 4 persons .. . . 46 60 58 60 73 78 84

4 persons . . .. . . 16 64 68 56 88 68 76

5 to 10 persons .. . . 293 237 263 252 262 283 282

11 to 20 persons .. . . 222 201 216 207 170 162 133

21 to 50 persons .. . . 201 218 182 147 115 114 138

Total .. . . 778

I

780 787 722 708 705 713

63. These statistical data show that in the State as a whole there has been a definite tendency for the small bakeries to increase and for the larger establishments to employ less labour. For the purposes of the present inquiry, it is unfortunate that under the Industrial Code no return is made of the bakeries which are worked by one or more menbers of a family. It seems probable from the evidence given before the Commission that, had such a return been available, the information for the metropolitan area would have been striking.

64. In Western Australia the records of the Department of Labour apply to that part of the State south of latitude 26° (roughly, south of Geraldton) and permit of a subdivision of the State into three regions-" Perth," "Suburban" and "Country and Gold-fields." These records define a bakehouse as "Any place in which any bread, cake, pastry, sweetmeats, or sugar

goods intended to be sold are baked or prepared for baking, and includes any place or room used in connexion with the bakehouse for storing such food when baked or to be baked, or any material to be used for the manufacture of such food to be baked." The figures, therefore, seem to include confectionery establishments.

65. Table 14 shows the number of "bakehouses" in the three subdivisions of Western Australia in each of the years 1928-1934. TABLE 14.

District. 1928, 1929. 1930, 1931.

I

1932. .1933. 1934.

Perth .. . . . . 29 30 34 40 44 34 35

Suburban . . .. . . 78 82 84 90 88 92 98

Country and Gold .:fields .. 175 196 195 184 210 162 219

Total .. . . 282 308 313 314 342 288 352

66. These figures indicate that there has been an increase of about 25 per cent. in the number of "bakehouses" in these districts in the seven-year period concerned, and that the increase has been fairly uniformly distributed through the Divisions.

24

67. The employment figures derived from the same source are somewhat complicated by the fact that they include the carters as well as those occupied solely in the bakehouse. The figures include worlcing proprietors. 68. Table 15 shows for the three subdivisions of Western Australia the total number of

those working in "bakehouses" during each of the years 1928 to 1934. TABLE 15. - -

District. 1928. 1929. 1930. 1931. 1932. 1933. 1934.

Perth . . . . .. 236 222 247 278 284 237 250

Suburban . . .. . . 472 411 479 476 427 459 478

Country and Goldfields . . 456 493 520 465 502 521 527

Total .. . . 1,164 1,126 1,246 1,219 1,213 1,217 1,255

69. The returns of the Government Statistician deal wi.th factories in the statistical sense and have been used in constructing Tables 16 and 17, which show the number of bakery" factories " in Western Australia grouped according to the number of hands employed in each year from 1927-28 t o 1933-34, and the number of employees within these same groups.

TABLE 16.

NUMBER OF FACTORIES.

- *1 927- 28. *1 928- 29. *1 929-30. 1930- 31. 1931- 32. 1932- 33. 1933-34.

-

Less than 4 hands . . .. 18 21 22 29 39 38 51

4 to 10 ha nds .. . . 39 40 37 50 39 40 39

11 to 20 hands . . .. 3 4 4 6 5 3 4

21 to 50 hands . . . . . . . . . . . . . . 1 . .

Total .. . . 60 65 63 85 83 82 94

___ ..

• These fi gures exclude cake factories.

TABLE 17.

NUMBER OF PERSONS EMPLOYED.

- *1 927-28. *1928-29. *1929-30. 1930- 31. 1931-32. 1932-33. 1933-34.

Less than 4 hands . . .. 50 61 58 67 100 96 127

4 to 10 hands . . .. 201 206 190 276 225 229 220

11 to 20 hands .. . . 40 47 48 80 68 45 58

21 to 50 hands . . . . . . . . .. . . . . 23 ..

Total . . . . 291 314 296 423 393 393 405

• These figures exclude employees in cake fact ories.

70. A satisfactory direct comparison throughout the period is impossible owing to a change in the method of recording between 1929-30 and 1930-31. The figures, however, indicate a definite increase in the number of factories of small size. 71. For Tasmania, Table 18 shows the data collected by the Chief Inspector of Factories for Tasmania in respect of the number of bakeries and the number of persons engaged therein . In this t able "bakery "does not inc lu de est ablishments manufacturing biscuits and confectionery, and the number of persons engaged includes male and female employees and the employers themselves when occupied in the business. Employees include bread carters.

TABLE 18.

·- 1925. 1026 . 1927. 1928. 1029. 1930. 1931. 1932. 1983. 1934.

Bakeries . . . . . . 182 181 180 197 200 233 254 277 277 270

Persons engaged . . . . 528 473 517 503 485 533 543 526 598 586

25

72. The Deputy Commonwealth Statistician for Tasmania kindly furnished data with respect to "factories" in which bread and pastry were made in that State. There was some difficulty in excluding from the figures the returns of confectionery enterprises as " a few establishments carry on combined operations, but as these are small " the officer concerned concludes that "they would not affect the figures to any extent." 1929- 30 is the earliest year for which satisfactory data could be supplied. Tables 19 and 20 set out the position.

TABLE 19.

NUMBER OF ESTABLISHMENTS.

- 1929-30. 1930-31. 1931-32. 1932- 33. 1933-34.

Under 4 persons .. . . . . 6 9 8 6 9

4 persons . . .. . . . . 8 9 11 18 16

5 to 10 persons . . .· . . . 19 16 22 32 29

11 to 20 persons .. . . . . 8 6 7 6 7

21 to 50 persons .. . . . . 1 1 2 2 2

51 to 100 persons . . . . . . . . . . . . .. . .

101 and over .. . . . . . . . . . . . . . . . .

------ - ----- Total .. . . . . . . 42 41 50 64 63

TABLE 20.

PERSONS EMPLOYED.

- 1929-30. 1930-31. 1931-32. 1932-33. 1933-34.

Under 4 persons .. . . . . 15 23 19 15 21

4 persons . . .. . . . . 32 36 44 72 64

5 to 10 persons .. .. . . . . 127 112 147 203 186

11 to 20 persons . .. . . . . 111 87 97 85 98

21 to 50 persons .. . . . . 48 44 89 85 87

51 to 100 persons . . . . . . . . . . . . . . ..

101 and over .. . . . . . . . . . . . . .. . .

Total .. . . . . 333 302 396 460 456

73. Conclusion.-The general conclusion of this Statistical Survey confirms the contention of the Master Bakers that competition within the industry has increased during the last few years, and that this competition has mostly taken the form of an increase in the number of small bakeries rather than in an extension of the larger ones.

SECTION IlL-LABOUR AS A FACTOR IN THE BAKING INDUSTRY.

(a) THE HISTORY OF THE REGULATION OF LABOUR IN THE INDUSTRY ••

(b) THE PRESENT POSITION OF LABOUR REGULATION IN THE INDUSTRY AS

(i) Hours of work of bakehouse operatives (ii) Hours of work of breadcarters (iii) Wage rates for bakehouse operatives and breadcarters (iv) Apprentices and improvers

(c) CoNCLUSIONS ••

PAGB.

29

31 33 34 36

36

29

111.-LABOUR AS A FACTOR IN THE BAKING INDUSTRY.

(a) T'HE HISTORY OF THE REGULATION OF LABOUR IN THE INDUSTRY.

74. The conditions of labour in the baking industry have been subject to control under the general system of industrial regulation which has been built up during the last half century .. The first steps were taken during the period which followed the financial depression of 1891-93. The Commission has considered it unnecessary to follow the development of this system in detail

in each State, as although there are considerable interstate differences, the general trends have been similar.

75. Mr. C. J. Bellemare, Under-Secretary of the Department of Labour and Industry in New South Wales, has been good enough to prepare a comprehensive memorandum on the course of events in that State. The Commission is appreciative of this assistance and presents the whole memorandum in Appendix A.

76. A study of this Appendix reveals the nun1ber of different points in the labour structure of the industry which can be affected by regulations.

77. The following tables summarize the changes which have been made in the regulations governing rates of wages and length of the working week in the metropolitan areas of each State and in certain provincial cities and towns in Victoria :-

TABLE 21.

WAGES AND HOURS-OPERATIVE BAKERS AND BREADCARTERS.

Sydney-County of Cumberland.

Operative Bakers. Carters.

-

I

-

Wages. Hours. Wages. Hours .

.

£ 8. d. £ s. d.

1924 . . .. . . 5 0 6 46

(day) 6 0 6 46 4 10 0 48

(night)

5th June, 1925 .. . . .. .. 4 14 0 48

7th September, 1925 . . .. .. 4 16 0 48

8th September, 1925 .. 5 2 6 46

(day) 6 2 6 46

(night)

9th April, 1926 .. .. 5 12 6 44

28th June, 1926 .• . . .. . . 5 10 0 48*

4th September, 1926 .. 6 7 6 44

27th June, 1927 .. . . . . . . 511 0 48*

27th June, 1927 .. . . 6 8 6 44

26th December, 1929 . . . . .. 5 8 6 48*

26th August, 1932 . . . . .. 4 16 0 48*

26th August, 1932 .. 5 13 6 44

11th April, 1933 . . . . .. 4 14 6

tMay, 1933 . . .. 5 12 0 44

8th September, 1933 . . . . .. 4 12 0 48*

17th September, 1933 .. 5 3 0 44

24th October, 1933 . . . . .. 410 0

November, 1933 { .. 5 1 0

tNovember, 1934 .. 5 2 0 44 411 0 48*

tMay, 1935 .. . . 5 3 0 44 4 12 0 48*

• The award was made on the basis of 44 hours. By mutual between and Union it was decid ed to work 48 hours, payment being

mnde for the extra 4 hours at the overtime rate of time and a half. Th1s extra payment 1s mcluded m the wages shown above. t Operated from commencement' of first pay period in month shown.

1924-26 1927 ..

1927 ..

1927 ..

1928 ..

1929 ..

1930 ..

1931 . .

1932 . .

1933-35

1924-26 1927-30 1931* ..

1932-34* 1935* ..

1924

1925

1926-27-28 1928-29 1930 ..

1931

1932-35

30

TABLE 22.

Melbourne and certain Provincial Cities and Towns

Operative Bakers. Carters.

- -

Wages. Hours. Wages. Hours.

£ s. d. £ s. d.

.. . . 6 0 0 48 4 12 0 50

. . . . . . . . 4 12 0 50*

. . . . 6 8 4 44

. . .. . . . . 5 0 0 50*

. . . . . . . . 5 6 0 50* Garment allowance of 9d . per week

introduced

. . . . . . . . 5 6 0 50*

6

g{

50* . . . . . . ..

0

{g 15 6 44 5 0 50* Garment allowance increased to Is. .. .. 6 4 44 4 5 Of per week .. .. 5 6 4 44 4 5 0 50*

.. . . 5 010 44 4 5 0 50*

• During a week in which t he statutory holiday for breadcarters !B observed (twice monthly) the weekly ho?'"s are 46.

Year.

.. ..

.. ..

. . ..

. . . .

.. . .

TABLE 23.

H oba1t and Launceston

Operative Bakers. Carters.

-

Wages. Hours. Wages. Hours.

£ s. d. £ 8. d.

5 0 0 48 4 2 0 48

5 7 0 48 4 6 0 48

5 0 0 48 3 19 6 48

4 8 0 48 311 6 48

4 9 0 48 3 12 6 48

• Subject to ri se and fall quarterly in cost of l!ving figures.

TABLE 24.

Adelaide---Metropolitan.

Operative Bakers. Carters.

Wages.

£ 8. d.

J! l5 3 0

5 3 0

*5 7 6

*5 7 6

*5 7 6

*4 17 0

*4 5 0

Hours.

48 } 48 ' 48

48

*48 *48 *48 *48

*48

Wages.

£ 8. d.

4 8 6

4 12 0

4 16 6

4 16 6

4 6 6

{

4 6 0

3 14 0

3 14 0

{

}

Hours.

51

51 50 50 48 48 48 48

} (Until March, 1925)

(Until November)

• Apply alBO to other parts ol State, the 1931 rates (in other parts of State) applying from March, 1931, 11nd the 1932-35 rates applying from June, 1982.

Bakers.•

-

Wages.

£ s. d.

1924-25 . . . . 4 18 0

1926 . . . . .. 5 3 0

1927 . . . . . . 5 3 0

1928t . . . . . . 5 3 0

1929 . . . . .. 5 3 0

1930 {4 18

0

. . . . .. 4 15 0

1931-33 . . .. 4 12 0

1935 . . . . . . 4 12 0

Hours.

44 44 44 44 44 44 44 44 44

TABLE 25.

Brisbarw.

Carters.

Wages.

£ s. d.

4 5 0

4 10 0

4 14 0

4 14 0

4 14 0

4 9 0

4 9 0

4 3 0

4 6 0

-

Hours.

44 44 44 44 44 44 44 44 44

• The fi gures given In these columns refer to conditions und er which a baker class ifi ed In the Brisbane award as a "second hand baker" works. He is the second man in a bakery when more than one man is employed. .

t In 1928 the following variation was made and still operates :- In the Factories and Shops District of Brisbane in consideration of employees starting t heir work at 7.30 a.m. or 7 a.m., as the case may be, such employees shall be paid 7s. per week above the rate prescribed.

31

TABLE 26.

Perth.

Operative Bakers.• Carters. t

Year.

I

-

Wages . Hours . Wuges. Hours.

£ s. d. £ s. d.

1924 .. . . . . 4 15 0 48 4 6 0 48 Federal Award (Carters)

1925 .. . . . . 4 15 0 48 411 0 48 State Agreement (Carters)

1926-27 . . . . 5 0 0 48 and 44 4 16 6 48

1928 1929 1930

1931

1932

1933

1934

1935

.. . . . . 5 9 0 44 4 16 6 48

.. . . . . 511 0 44 4 18 6 48

f5 10 0 44 4 17 6 48 . . .. . . l_5 19 0 44

{5 11 0 44 4 9 6 48 .. . . . . . 4 15 2t 44 4 5 0 48 f5 5 0§ 44 4 3 6 48 . . . . . . (_5. 3 6 44 3 18 10t 48 H 2 0 44 3 18 10 48

1 0 44 4 0 9'11 48 . . .. . . 2 3 44

8 11** 44

(4 13 3 44 4 1 · Ott 48 .. 14 13 6 44 .. . . 4 2 6 48 4 15 0 44 . . .. . . 5 5 Ott 44 4 2 6 48

Wage rates for carters include allowance of Is. per week for collecting money. • 1924 to December, 1926, agreement ln force. December, 1926, to 1935, awards ln force. t State agreements in force 1924 to October, 1933. October, 1933, to date award ln force . Financial Emergency Act order.

§ Financial Emergency Act order cancelled. Award (State) delivered 19th October, 1933.

• • Financial Emergency Reduction. tt Financial Emergency Act expires 31st December, 1933. :U Bakers starting time altered from 5 a.m. to 3 a.m.

(b) THE PRESENT POSITION OF LABOUR REGULATION IN THE INDUSTRY AS REGARDS-(i) HOURS OF WORK OF BAKEHOUSE OPERATIVES. 78. In cities and towns wherever there is a well-organized baking industry the public is accustomed to a daily delivery of bread except on Sundays and public and bakers'

holidays, but in country districts with scattered population less frequent deliveries are customary. It should be noted that Sundays and public and bakers' holidays in total are a not insignificant proportion of the year. 79. The work of the bakehouse is organized in such a way as to produce daily that amount

of bread for which a ready sale is expected. Prior to week-ends or special holidays almost double the normal amount of bread must be produced. Any system of regulation of wages and hours must allow for a certain amount of latitude in respect of these exceptional periods. Even more troublesome is the case which occurs when a statutory holiday precedes or follows a Sunday ;

under these circumstances it is necessary to bake a largely-increased supply. This is known in the trade as a treble supply, although it is not three times the amount of the daily requirements. This introduces a further complication of hours and wages. In some respects the production of bread is a public service which is intermediate between the supply of perishable goods such as milk, and the supply of relatively stable foodstuffs such as groceries ; and the problem of the condition of a proportion of the bread produced at a "treble" baking at the time when such

bread is used by the public requires consideration. 80. For many years it was customary for baking to start before or at midnight on "ordinary" days. The bread was then ready for delivery to the customers in a fresh but cool condition early in the morning. This state of affairs still prevails in Tasmania and in country districts in some States, but elsewhere the conditions of labour fix hours of starting on ordinary

days ranging from midnight in Melbourne to 7 a.m. in Brisbane. This naturally results in some inconvenience to the master bakers under the present competitive system when some customers want fresh bread delivered at an early hour, but it enables the operatives to live somewhat more normal lives . It is noteworthy that, whereas there are many occupations in which it is necessary for men to work during the night, there are few in which the operative is called upon to do all

his work during night hours as is the case with bakers where night baking obtains. 81. In each State regulations have been laid down governing the hours and times of work of bakers. In New South Wales these are provided for by the Industrial Commission under the Industrial Arbitration Acts, and the Day Baking Act 1926 is also in operation. In Victoria the

32

authority is the Bread Trade Wages Board, working under the Factories and Shops Act; in South Australia a Bakers' Board operates under the Industrial Acts in the metropolitan area, and an award of t he Industrial Court operates in all other parts of the State ; in \Vestern Australia the awards are laid down by the Court of Arbitration of that State ; in Queensland by the Industrial Court of Queensland, and in Tasmania by the Bakers' Wages Board, which operates under the Wages Boards Act.

82. Table 27 shows the hours and periods of work at present in force in the various States. In many cases distinctions are made between the metropo]jtan districts and the country areas. In Queensland certain special districts are set apart, but otherwise the State is divided into three divisions.

83. The first collunn shows that, except in South Australia and Tasmania, a forty-four hour week is prescribed, although certain modifications apply in some cases in weeks when the organization is affect ed by public holidays or special holidays afforded to the trade. Hours worked in excess of the total hours allowed in the schedule are paid for at a higher rate.

TABLE 27.

HOURS AND TERMS OF WORK IN VARIOUS P ARTS OF AUSTRALIA.

Counties of Cumberland and Northumberland

Country

Metropolitan (and certain pro­ vincial and rural areas) Other parts of State ..

Southern and Central Division­ Brisbane ..

Most other districts

Northern Divisio n

Adelaide­ Metropolitan Other parts of State

Metropolit:w

Country

Bakers.

Ordinary Night or Day.t " Double " Night or Day.

t Total hours ------·-------- -------- --;-----­

per week.

44

44

44

44

44

44

44

44

4S 4S

44 44

4S

Maximum hours.

Earliest starting time.

NEw SouTH WALES.

Latest fi nishing t.im e.

Monday to Thursday-S 15.30 a.m. 6 p.m.

Friday-6

Where working week Sunday to Friday-S 5.30 a.m. 6 p.m.

(excluding Sunday) 6 Sunday

Maximum hours.

10

10

starting time.

Midnight

No work between 6 p.m. Friday and 5.30 a.m. Sunday

mences on Monday-

Latest finishing time.

6p.m.

Where working week com- I

1 8 I 5.30 a.m. / 6 p.m. 10 Midnight 6 p.m.

No work between 6 p.m. on any double day and the prescribed starting time on the next working day. VICTORIA.

7 Midnight 7p.m.

Not re-

gulated QUEENSLAND.*

St 7 a.m. j 5 p.m.

No work on Saturdays. S 7 a.m. 1 6 p.m.

S (Tuesday to Friday)*

7 a.m. j 6 p.m.

(Sat.) 6 a.m. Noon

SOUTH AUSTRALIA.

10

Not re­

gulated

10

10

9

9p.m.

7 a.m.

7 a.m.

4 a.m.

7 p.m.

6p.m.

6 p.m.

3p.m.

I

9 I 5 a.m. I 6 p.m. j · 10 I 6 p.m. Ill a.m.

No t stated Notstated Notstated Notstated Notstated Notstated WESTERN AusTRALIA.

1

12 midnight Sunday I I

Tues. to Thurs. (Fri. 2 p.m.) § 3 a.m. I 6 p.m. l 10 8 p.m. S a.m.

As mutually agreed between the employer and Union. 'TASMANIA.

I

As mutually agreed between employ,er and employee. I I I I

• As Thursday is a whole holiday for breadcarters, little bread Is baked in the State. t Sundays-noon to 6. t Minor exceptions occur i n weeks both public holidays and bakers' picnics. § The hours of work each day t o be arranged to suit the requirements of t he shop provided t hat not more than on e shUt of 10 hours is wo rked during th (' week .

33

84. The regulation governing the number of hours which may be worked at ordinary rates during any one period of twenty-four hours takes notice of the difficulty which arises owing to the need for baking a double supply prior to week-ends or special holidays ; t herefore, although one maximu1n number of hours may be worked in any t wenty-four on ordinary days a different

maximum is laid down to apply on " double " and " treb le " days. In Tasmania no definite periods of work are laid down; the award states that such shall be "mutually arranged bet ween the employer and the employee." 85. Except in Tasmania the award in each State fixes a given specific period of the day during which the operative may be called upon to work his ordinary hours at ordinary rates of pay. In South Australia (metropolit an area) and vVest ern Australia t his period fa lls bet ween 5 a.m. and 6 p.m. and 3 a.m. and 6 p.m. respectively. In South Australia (metropolitan area)

there are 13 hours and in West ern Australia 15 hours during which t he n1ast er baker can instruct the operatives to work up to nine hours without paying thmn overtime rates. In New South Wales the period is for 12 hours ; in Victoria 19 hours ; in Brisbane 10 hours and other part s of Queensland usually 11 hours. .

86. This kind of award, although probably· favorable t o the operative in so me respects would make it difficult to operate economically a highly-n1echanized and continuous system of baking requiring a large expenditure of capital. Apart from the reduction of direct emplovment which mechanization involves, the present restrictions on t he hours during which bread-baking

is permitted hamper the development of mechanization, which would in the long run render the work of the operative less arduous. 87. The award in each State lays down specific regulations with regard t o the rat es of pay for work done in excess of the number of hours prescribed for the day or the week. These overtime rates differ considerably from State to State, but in gen eral they vary from" time and a quarter"·

to " double time ". They are set out in some detail in Appendix B. In some instances it is laid down that no overtime shall be worked when casual labour is available.

HouRs OF WoRK oF BREADCARTER S.

88. The breadcarters represent a more important section of the industry than is generally recognized. In the case of the average bakehouse more men are usually employed in delivering the bread than in baking it. 89. The conditions of work of the breadcarters are frequently laid down by a different

authority from that which prescribes the conditions of work in the bakehouse. In New South Wales there is a Breadcarters' Conciliation Committee under t he Industrial Arbitration Act. In Victoria there is a Breadcarters' Wages Board operating under t he Factories and Shops' Acts. In South Australia there is a Breadcarters' Board for the metropolitan area working under the Industrial Acts. In vVestern Australia the carters' award, like the bakers', is made by the Court

of Arbitration of Western Australia. In Tasmania, the carters work under an award of the St ate Wages' Board, and also under the Federal Carters' Award. In Queen sland the carters work under an a ward of the Industrial Court. 90. Table 28 shows the .hours and conditions of work of breadcarters in various parts of

Australia. The first column shows that the total hours which may be worked in the normal week vary between 44 and 50 in different States. In most cases the maximrnn hours which may be worked in any one day, or in any one " double " or "treble " day, are also prescrjbed. 91. The award also lays down the earliest hours at which a carter ma'y start and the latest

at which he may finish. The starting hour requires consideration in conjunction with the hour at which the baking operatives are permitted to begin work. Where night baking is in operation, there is ample time for the first batch of bread to have cooled down before any of the carters come on duty.

TABLE 28.

HOURS AND TERMS OF WORK IN VARIOUS PARTS OF AUSTRALIA. Bread Carters.

Ordinary Days. " Double " Days and Saturdays .

- Total hours per week. Earliest Latest Earliest Latest Maximum starting finishing Max imum starting fi nishing hours. time. t ime. hours. time. time. I

I

NEw SouTH W ALES.

Counties of Cumberland and i' I I I I I I Northumberland . . . . 44 8! 7 a.m. 6 p. m. 10 6 a .m. Notstated

Country . . . . . . 44 Not stated 6 a.m. 6 p.m. .

Provided that where the necessities of business so demand the number of hours specifie d may be increased by four hours per week without any liability to pay overt ime rat es under t he award.

34

TABLE 28-continued.

l

Ordinary Days. " Double " Days and Saturdays.

'J'otal hours per week. Maximum Earliest Latest Maximum Earliest / Latest

hours. starting finishing hours. starting finishing time. time. time. time.

VICTORIA.

I 50 /Not re-j 5 a.m. I 6 p.m. I Not re-j 5 a.m. I 7 p.m.

gulated gulated

- The actual delivery or carting of bread before 6 a.m. or after 6 p.m. in the metropolitan district is prohibited under the Factories and Shops Acts.

Southern and Central Division, Brisbane ..

Northern Division

Metropolitan area

Metropolitan

44

44

48

48

48

QUEENSLAND.

8 a.m.

5.45 p.m. r Saturdays 6.30 a.m.

6.45 p.m. I 8 a.m.

9 7 a.m.

8*

SouTH AusTRALIA.

I Not stated 1 6.30 a.m. I 6 p.m. WESTERN AUSTRALIA.

5.15 p.m.

6 p.m.

9 I 6 a.m. I Not stated' Saturgays j 5 a.m. I Not stated

TASMANIA.

I

No fixed starting and finishing time. ., I I I

• Except on day of weekly half-holiday.

92. Where the bread-baking begins at 5 a.m. it is practicable to begin deliveries about 8 a.m. In Brisbane, where baking does not begin until 7 a.m., little bread is available before 10 a.m., so that between 7 a.m. and about 10.30 a.m. the carters are able to deliver only bread baked the previous afternoon. As a percentage of the public demand new bread, it follows that the carters are relatively idle for a considerable period of the morning and then must make a second trip over the same round. A further disadvantage arises as there is a definite tendency to take the bread straight from the oven and put it in the cart without allowing it to

cool effectively. This lack of co-ordination between the hours of work of carters and bakers in Queensland is surprising. To a lesser extent, the same state of affairs prevails where the earliest hours for bakers are 5 a.m. Here the result is that extra carters have be employed in order to rush the fresh bread to the public.

93. In Australian cities, Saturday is_ the customary half-holiday for the general population. The fact that this is a heavy day for bread--carters means that they are at a disadvantage when compared with other workers. This is compensated by the allocation of special bread-carters' holidays, which are as follow :-

New South Wales

Victoria

Queensland

South Australia Western Australia

Statutory holiday third Wednesday in every month except in certain instances when Thursday is observed. Statutory holiday on first and third Wednesday in every month, but when a public holiday occurs in the same

week as the first or third vVednesday the public . holiday is to be observed in lieu of the Wednesday. Statutory holiday Thursday in each week except when a public holiday or " breadcarters' picnic " day occurs. Compulsory weekly half-holiday. Statutory monthly holiday on third Wednesday in every

calendar month ; when a public holiday occurs in any month the third Wednesday is not to be observed as a holiday except in the months in which Good Friday and Christmas Day occur. Tasmania Compulsory weekly half-holiday.

94. These special trade holidays complicate the organization of the industry to a certain extent, because the awards lay down that on such days no bread may be carted by anyone, whether master-baker or operator. The effect in' the bakehouse of the carters' holidays is that the day before each of thmn must necessarily be a "double day".

(iii) WAGE RATES FOR BAKEHOUSE OPERATIVES AND BREADCARTERS. 95. Table 29 showsthe rates of wa ges which are laid down for the various types of operative in the bakehouse. Table 30 shows the rates laid down in the awards governing the breadcarters' wages.

96. Regulations governing the rates payable to breadcarters for "overtime " work are set out in Append.Uc B.

35

TABLE 29.

RATIO OF MINIMUM WAGES FOR BAKEHOUSE OPERATIVES.

St ate. F oreman. Single hand.

I Dough maker. I o'"""" brum. ' Ovens man. I Unsldlled worker. I

Cumberland

Country

Metropolitan Outside

Southern

£ 8. d.

*5 15 6

t5 9 6

*5 15 6

t5 10 6

5 10 0

5 10 0

£ s. d. £ s. d.

NEw SouTH 'vVALES. 5 8 0 5 5 6

5 10 6 5 5 6

VICTORIA.

5 10 o I 5

0 ... o 10

5 10 0 0 10

QUEENSLAND.

§5 4 6 4 19 6 I 4 19 6

19 6

£ 8. d. 1

5 3 0

5 3 0

5 o 10 I

5 0 10

£ .s. d.

5 10 6

5 10 6

t4 12 o I 114 11 o

I £ s. d.

3 14 0

In t he shops and factories, District of Brisbane, employees are paid 7s . per week above the prescribed rate for starting at 7.30 a.m. or 7 a.m. Central Mackay

Northern

Metropolitan

Other parts of State

§5 10 0

5 0

§5 14 6

9 6

**4 10 0

t t 4 15 0

: : : 155 95 00

t4 17 6

t5 2 0

SouTH AusTRALIA.

4 10 o I . 4 5 o

I 4 5 0

4 5 0

4 5 0

WESTERN AUSTRALIA.

(i) Metropolitan, within 15 mile ti515 0 radius G.P.O., Perth ; §§5 12 6 5 10 0 5 10 0 5 5 0

li5 2 6

(ii) Outside 15 mile radius 5 13 0 5 10 6 5 10 6 I 5 5 6

G.P .O., Perth I

3 19 6

3 6 0

By award, dated 4th March, 1935, wages of bakers' operatives were raised lOs. per week by mutual arrangement confirmed by the Arbitration Court, in return for starting at 3 a.m. instead of 5 a.m. TASMANIA. 4 18 0 4 5 0 4 8 0 4 8 0

• In charge of four or more employees. t In charge of less than four employees. The Queensland figure for" operative baker" is that for a " second-hand baker." There is a higher differentiation for bakers' wages in that State.

§ Supervision of four or more fully-paid bakers. Supervision of three or less fully-paid bakers.

U Each additional oven 5s. extra . .,. Where two bakers. t t Where three or more. H Where four or more workers. I§ Where less than four workers.

Cumberland Country

State.

I

l

TABLE 30.

\VAGE RATES FOR BREADCARTERS.

One horse Two or more Iviotor

I

Vehicle. horse vehicles. vehicles . Foremen.

£ s. d. £ s. d. £ s. d. I £ s. d.

NEw SouTH WALES.

4 12 0 Lowest weekly wage for breadcarters. 4 3 6 JVIinimum wage .

VICTORI A.

4 5 0 4 7 6 4 5 0

Drivers assistant.

£ s. d.

Grooms, stablemen, yardmen.

£ 8 . d.

3 15 0

Stable workers only.

All others.

£ s. d.

4 5 0

Any employee who is required to wear a_clean washable outer garment shall be paid I s. per week in addition to ordinary rates.

Southern and Central Northern Division­ E astern District

"r estern District

Metropolitan Area

Metropolitan Area within 15 mile radius G.P.O. Outside 15 mile radius G.P.O.

F.403.--3

QUEENSLAND.

4 3 0 4/ 6 0 4 6

411 0 4 16 0 4 13

0 410 6

0

3 18 0

Adult 4 4 0

3 14 0

4 4 0

The minimum rate of wages payable to drivers in the Western District shall be 8s. per week in case of senio rs and 4s. per week in the case of juniors in addit ion to t hose set out for Eastern District. SouTH AusTRALIA . 3 14 o 1 1

*VIESTERN AusTRALIA.

I

*4 6 6 1

*4 7 0

*4 1 6

*4 2 0

TASM ANIA.

t3 11 6 (State Determination). I

• An ext ra shilling per week ls allowed for coll ecting rri on eys . t Subj ect t o wst of living adjustment s.

3 7 0

36

(iv) APPRENTICES AND IMPROVERS.

97. In vie w of the fact thBJt bread-baking is a definite craft, especially when not mechanized, some system of apprenticeship is desirable. Under this system, the master baker enters into a bond to find employment for the apprentice fo r a term of years and to teach him the trade, in return for which t he apprentice works for a lower monetary wage. As the wages are lower, it became necessary for the award to regulate the number of apprentices which might be employed in any one bakehouse. The regulations in this respect are set out in Appendix C.

98. Excent in vVestern Australia the awards allow a certain number of men to work in a bakehouse as "_,improvers " . As there is no guarantee that the master baker will find them mnployn1ent for a given period, their wages are higher than those of the apprentices (see Appendix C) . The award lays down the ratio of ' : improvers" to operatives in a bakehouse. Data in this respect are included in Appendix C.

(c) CONCLUSIONS .

99. Industries in Australia are controlled in respect of the hours of employment and money rewards of the employees engaged therein, and the conditions under which trainees may be employed and remunerated. In most cases, however, the Industrial Award or the Act of Parliament operates equally over all the workers in the industry, and the mere regulation does not of itself set up any new element of cornpetition. The proprietors of the businesses engaged in the industry are not favoured one against another. But the bread industry is t o some extent an exception to this rule. The industrial standards or the legislative restrictions are not applicable universally to all those engaged as workers in the industry. The working proprietor of a s1nall bakery and the n1mnbers of his family who assist hirn are not necessarily paid as wages the sums which the proprietor employing "hired" labour is required to pay. Further, in some States they need not observe the hours of work in the bakehouse to

which "hired" employees are restricted. The operation of the industrial law in the one case and not in the other, pla ces the employer of " hired" labour at some disadvantage. Price-cutting oftentin1es is possible because of immunity from the observance of industrial-awards. Evasions of a wards occur in an effort to meet the effects of such competition aJnd these evasions are sometimes with the connivance of the employee. The industrial position of the industry is

unsatisfactory in all States. 100. The effect which labour regulations may have on the economic results of various types of bakery may be considerable. Thus the restriction of the length of the portion of each 24 hours during which a bakery may operate is, in general, unfavorable to bakeries with highly­ mechanized or automatic machinery and ovens because such installations are designed to work at a steady speed and cannot be markedly accelerated. On the other hand, in a hand-operated bakery, or one where a. dough1nixer is the only form of machine, it is easier to deal with periods of pressure. ,

101. The demands of the public also affect the problem. The Australian housewife for the most part den1ands fresh bread and, in many cases, there is even a preference for so-called "hot" bread, which is delivered shortly after it has emerged from the oven. It seems likely that this habit is both wasteful and unhealthy, but its origin seems to lie in a very genuine dislike of stale bread. The Conunission considers that hot bread has in some cases become a fetish and is now confused in the public mind owing to a desire for a tangible proof of freshness complicated by the requirements of early delivery. In some country districts, full -day baking is carried on, t he bread being delivered t he follo·wing day and there is no evidence of dissatisfaction on the part of the cons.umers. However, the problen1 of staling It is a .complex matter, not solely one of drying. It may be connected to some extent With the flour Itself (s ee paragraph 430) ; it is by the . nature _of the climate, but it be by

the admixture of certain materials to the dough. There IS need for Investigation Into this question and such inquiries should be part of the task of the research organization which the Commission recommends. In t he meantime, the public demand for early deliveries of fresh bread renders the task of t he master baker very difficult in those areas where the hours of starting work are relatively late in the morning. It is frequently necessary to employ a larger number of hands than can be kept efficiently occupied during the whole period of the working day. Where "night baking " or an early start (e.g. 3 a.m.) are in vogue the problem ceases to be acute.

102. The question of "_night baking versus day baking" has discussed in most parts of the world and was the subJect of a Report presented to the InternatiOnal Labour Conference in Geneva in 1924. This Report and the Year Books of the International Labour Office show that legislation enforcing day baking is operative in Austria, Denmark, Germany, France and certain other countries, while in Argentina and Italy it also applies except in the case of large machine In Australia a Day-baking Act is in New South and the principle

. is also enforced In Queensland and, to a lesser extent, m Western Australia.

37

103. The Commission is in full sympathy with the movement to improve the conditions of work of the However, the industry is the servant of the community and

the problem will not be solved satisfactorily until on the one hand an average loaf with better keeping properties than that at present produced is made available to t he public, and on the other, the public is taught that" hot" bread is nutritionally undesirable. The forrner is a matter for research; the latter is one for propaganda and education. In addition, from the point of view of the public, there is little to be said in favour of t he very late start which prevails in Queensland.

THE BAKING INDUSTRY.

SECTION IV.-THE REGULATION OF THE BREAD INDUSTRY IN RESPECT TO MATTERS OF HYGIENE.

(a) THE NATURE AND SCOPE OF THE LEGISLATIVE REGULATIONS ..

(b) THE EXTENT TO WHICH THE REGULATIONS ARE OBSERVED

(c) DouGH MIXING

(d) WRAPPING

(e) DELIVERY

(j) SHOP SALES (g) CONCLUSIONS

PAGE.

41

41

42 42 42 42

43

41 .

IV. THE REGULATION OF THE BREAD INDUSTRY IN RESPECT TO MATTERS OF HYGIENE. (a) THE NATURE AND SCOPE OF THE LEGISLATIVE REGULATIONS. 104. The organization of the bread industry in such a way that a relatively large number oLconsumers obtain their supplies of this staple article of diet from a relatively small number of bakehouses, has rendered the control of those bakehouses in certain respects an essential matt er of public policy. This control can be divided under two heads. The first deals with the construction of the bakehouse from the point of view of the operatives who work in it. · The second deals with the construction of the . bakehouse and with the practices attendant upon the manufactur,e and distribution of bread from the point of view of the health of the consumer. In addition, the chemical composition of the bread is also a matter of import ance which is referred to in Section VIII., Sub-section (c).

105. The control of bakehouses in respect to the conditions under which the workers engaged in them have to work is a matter which is d ealt with under the Factories' Acts in the various States. These Acts are not the same in every Stat e, but , in general, there is a fairly close similarity. - ·

106. Under the Health Acts of the various States numerous regulations have been prescribed with a view to ensuring that the bread shall be made under hygienic conditions, and shall be kept free from contamination during the time when it is awaiting, or in course of, delivery. These regulations follow similar lines in most of the S_ t ates. The provisions which they lay down

deal with the following matters :-107. The nature of the floor of the bakehouse ; the surface of the ceilings and the walls ; ventilation; cleanliness of plant and utensils ; arrangements to enable t he operatives to wash their hands and instructions that they shall do so ; clothing of those engaged in the operat ions; protection from flies; personal habits of people in the bakehouse ; exclusion of animals from the bakehouse ; the prohibition of the use of the bakehouse for other purposes ; the covering of vessels

and containers used for carrying the food; regulations with regard to the receptacles for containing yeast; prohibition against working the dough on bags; regulations with regard to cleaning the floors; regulations with regard to the provision of lavatories and the location of such accommodation; a prohibition against bread being placed on the flo or; prohibition against

animals being allowed to be at large in the bakehouse yard ; provision for the removal of animal refuse in premises adjacent to the bakehouse.

(b) THE EXTENT TO WHICH THE REGULATIONS ARE OBSERVED. 108. The Commission has visited a large number of bakehouses in all the capital cities of the Commonwealth and in a number of country cities and towns. These visits of inspection revealed a wide variation with respect to observance of regulations. In a large number of

establishments conditions were satisfactory, whilst on the other hand in many instances the reverse was the case. Generally the larger establishments were well conducted, and, whilst some of the smaller bakehouses were efficient from the hygienic point of view, many others were not so.

109. The Commission has visited certain bakehouses iri which, though there were fly-wire attachments to the windows and doors, flies were numerous in the bakehouse. It is admitted that the control of flies is by no means an easy matter. At the same time, the intent

of the regulations with reference. to the provision of screens over windows a_nd doors is that flies shall be kept out. If the wue doors are left open, In order to afford convement access, then the spirit of the Regulations, at least, is being broken. The Commission does not suggest that the presence of flies in a bakehouse necessarily means that the bread is unhealthy, but modern

research has so clearly pointed to the fly as a of diseases of on e kind and another

that the point is one of considerable importance. In this connexion, it has been frequ ently observed that the prevalence of flies is often to be associated with the presence of stables in the immediate vicinity of the bakehouse. The Commission appreciates that , from many points of ·view the delivery of bread by means of horse-drawn vehicles is economical. It is also aware

of the fact that the regulations lay down specific conditions for the treatment of animal refuse from stables adjacent to the bakehouses. The rigid enforcement of these regulations is bound to be a matter of difficulty and cannot be carried out except by expenditure and care on the part of the bakehouse proprietor. From the purely hygien ic standpoint there wou ld be much to be

said for a total prohibition of all stables or other fli es can breed in in_

vicinity of bakehouses. enforcement of prohibitiOn 1s beyond_ the of practicability at the present time,. but. It eons1dered future legrslat1o_n In the of

food-producing prermses IS being considered. Meanwhile the complete daily removal of amrnal refuse and thorough cleanliness in the stables would be a move of great value in this regard.

42

II 0. In many bakehouses there are adequate arrangements for · storage of bread during the period after baking and prior to delivery. On the other hand, the Commission has observed cases in which the bread was stacked on the floor, and other instances where the bread racks were not as clean as they should have been.

Ill. Other factors t o which more attention is neccessary in particular instances are.-(a) Ventilation.- Where proper dough rooms are not provided in the bakehouses it is inevitable that ventilation presents considerable difficulty because of the necessity of n1aintaining regular temperatures in the atmosphere surrounding

the dough during the fern1entation period. (b) L1:ghting. (c) The condition of tvalls and flo ors.-For instance, in a number of cases walls, although superficially white-washed, have been broken at or near the gi'Ound level

thereby affording locations where insects may breed readily. (d) S uitable storage facilities for rnaterials in making bread, such as potatoes for yeast culture. - Instances have been noted where storage facilities were inade­ quat e and there was an unpleasant aroma arising fron1 stored materials. (e) P roper f acilities for the storage of plant and equiprnent.-In certain instances harness

was found in the same room as that in which baking was being conducted.

(c) DOUGH MIXING.

1I2. The practice of mixing dough by. hand is a primitive one, but is still carried on in many bakehouses. The Commission has watched this operation on numerous occasions. During many months of the year it is impracticable for the average man to mix dough without perspiring freely, and, in the course of the operation, it is inevitable that the perspiration should enter into the dough which is being made. While it is true that there is little danger of the spread of disease from this practice , because the dough is subsequently raised to a ten1perature high enough to kill most disease germs, yet if the consumers who purchase this bread knew that it contained a certain amount of the perspiration of the operative who made it many would probably refuse to eat it.

It is true that every time the housewife mixes the ingredients for making a cake in her own kitchen, the saffi:e condition of affairs occurs to some extent. Yet most people make a distinction between whay may be crudely described as their own dirt and that of other people. It has been already stated that a large number of bakers expressed their opinion that mechanical dough-mixers should be installed in every bakery. r:rhe Commission considers that this view is justifiable and recommends that the installation of a mechanical dough-mixer should be prescribed as an integral part of the equipment of bakehouses wherever practicable. As will appear later, such a requirement would have a beneficial influence on the industry as a whole, inasmuch as it would raise the bakehouse standard and render the opening of poorly equipped bakehouses more difficult than it is at the present time.

(d) WRAPPING.

113. From the point of view of practical hygiene, the ideal method of delivering bread would be in the form of wrapped loaves. Wrapping machines have been devised and have been installed in certain places, but there are cert ain obstacles to their use. The bread cannot be wrapped with until it is cool and, inasmuch as in many States bread is rushed out to the public owing to the restrictions of the hours of baking, the necessary time for cooling cannot be allowed to elapse before delivery occurs. Consequently, WTapping .the bulk of the loaves is, under present conditions, impracticable. Incidentally also, the cost of wrapping is by no means negligible. ·

(e) DELIVERY.

I14. There are regulations which govern the type of vehicle which may be used for the delivery of bread and of the baskets and containers in which it may be carried. The Commission was informed that in at least one State these regulations were sometimes broken, especially in those cases where the awards governing the hours of work of· breadcarters prevent the delivery on certain days. The breach usually consists in the use of private cars during unauthorized hours.

(f) SHOP SALES.

115. During recent years, the sale of bread in shops has become increasingly widespread. Many types of establishments now offer bread for sale including those conducted by grocers, confectioners and green grocers, those selling sweets or milk, as well as cafes, chain -stores, and departmental stores. Bread sold in this way js generally lower in price than when delivered to the houses of customers and the volume of sales is considerable. This fact suggests that selling of bread " over the counter " meets a demand from a certain section of the pe.ople. The conditions under which such bread is stored in the shops are sometimes unsatisfactory.

43

116. Even if the conditions ]aid down for the storage of bread in shops were far more exacting than they are at present and were fully observed, the further points of the cleanliness of the individuals handling the loaves and the nun1erous handlings unavoidably _involved would still remain. The restriction of the sale of bread to certain classes of shops, the general trade of which is cleanly in nature, is a subject claiming special consideration. The matter is discussed further in Section VI. (e).

117. It has been pointed out to the Commission that, whereas in many cases the regulations prohibit the return to bakers of bread which has been proviousiy delivered to a private household, there is no regulation against the shopkeeper returning stale bread to the baker who in turn may resell to private consumers. In such cases it is quite possible that the bread may have been handled and re-handled several times, and may have been contaminated. .

(g) CONCLUSIONS.

118. In the opinion of the C01nm.ission the need for greater attention to the conditions in which a proportion of the bread is produced. is considerable. The public should be certain that all bread sold has been made under satisfactory conditions and handled in a cleanly manner. ll 9. At present the system of inspection of bakehouses is dual in character, and there is evidence of lack of organization to ensure co-operation bet\veen the Departnwnts charged with inspection from the factory point of view and Departments charged with inspection from the

health standpoint. Further, in certain localities the control and efficiency of the health inspection is less than is desirable on account of shortage of staff. This is true both as regards bakehouses and shops where bread is sold. 120. The matter is one for State jurisdiction. In a later section of this Report the

Commission recommends the institution in each State of a separate authority charged with the general supervision of the bread supply. It would be the duty of such bodies, inter alia, to confer with the Health Authorities and to formulate plans whereby greater efficiency might be secured in the bread industry and a higher standard might be achieved. These Bread Authorities would be required to recommend standards of bakehouse construction and operation which would

eliminate such health hazards as are certainly present today, and the minirnum equipment of the bakehouse in respect to machinery for dough-mixing and for improving the bread produced, on the lines discussed in later sections of this Report .

•

SECTION V.-COSTS OF PRODUCTION, DISTRIBUTION, AND ADMINISTRATION, CAPITALIZATION AND THE FINANCIAL RETURN FROM THE INDUSTRY.

PAGE.

(a) PROCEDURE ADOPTED IN MAKING THE INVESTIGATIONS 46

(b) COSTS OF PRODUCTION, DISTRIBUTION AND ADMINISTRATION 48

(i) Procedure adopted in analysing costs 48

(ii) The number of loaves produced from one ton of flour . . 50

(iii) The price of flour as a factor in bakers' costs 54

(iv) The average cost of the 2 lb. loaf in the Metropolitan areas of the mainland States, and in the State of Tasmania 58

(v) The average cost of the 2lb.loaf in country districts of Australia. . 70

(c) CAPITALIZATION OF THE BREAD-BAKING INDUSTRY . . 73

(d) THE FINANCIAL RETURN FROM THE INDUSTRY-(i) The prices actually received for the 2 lb. loaf 79

(ii) The margin of profit per 2 lb. loaf in the Metropolitan areas and in Tasmania 87

(iii) The margin of profit per 2 lb. loaf in the rural areas of mainland States 92

(iv) A survey of profit and loss accounts of certain bakeries during the years 1931, 1932 and 1933. . 94 (e) SUMMARY OF THE FINANCIAL POSITION OF THE INDUSTRY 97

46

V.-COSTS OF PRODUCTiON, DISTRIBUTION AND ADMINISTRATION, CAPITALIZATION, TifE RETURN FROM THE INDUSTRY.

(a) PROCEDURE ADOPTED IN MAKING THE INVESTIGATIONS. 121. In August, 1934, a comprehensive questionnaire was issued to bakers throughout the Commonwealth. This questiom1aire was designed for the purpose of ascertaining (a) the annual costs of the business under the sub-heads Production, Distribution and Administration,

(b) earnings, (c) the assets actually employed in t he business at their book values, (d) the liabilities of the business, and (e) other statistical information necessary to the Commission's investigations. A copy of the questionnaire is attached as Appendix D. 122. Where more than one bakery was operated by a company, firm or master baker, a separate statmnent was required in respect of each establishment. The questionnaire provided for financial information for the four years', 1928, 1931, 1932 and 1933, but the majority of bakers who returned the staternent were unable to supply figures prior to 1933. \Vhere reliable returns for the earlier years were available they were used as a check in the analysis of costs.

123. The number of questionnaires distributed in each State, the number returned and the number used for costing and/or statistical purposes are shown in Table 31 hereunder :-TABLE 31.

Res u!t.s of Distributio n. Number used for Costing only.

Number Number used

State. Distributed. for Statistics

F orms Forms returned No R eply. Metropolitan. Country. and/ or Costing. Completed. Incomplete.

New South Wales .. 1)211 604 272 335 73 57 314

Victoria .. . . 832 465 184 183 49 20 205

South Australia . . 412 191 119 102 28 7 94

vVestern Australia .. 287 167 51 69 26 8 57

Queensland .. . . 696 320 161 215 30 18 77

Tasmania . . . . 164 95 29 40 29 .. 30

Commonwealth .. 3,602 I 1,842 816 944 110 777

I

For the purpose of this and other tabulations, the Federal Capital Territory figures have been included with those of ew South Wales. 124. The type of bakery business in connexion with which the manufacture or sale of pastry, confectionery, small goods or other sidelines formed a substantial part of the business operations has been excluded, except where the bread figures could be segregated and separate detail costs of the bakery section were ascertainable.

125. Where the business was carried on by a limited company, the following additional information was asked for :-(a) Particulars of share capital in 1924, with details of all subsequent additions, reductions, or reconstructions.

(b) The amount to the credit of each Reserve Fund in 1924, vvith particulars of amounts since transferred to or withdrawn from each such Fund. (c) The net profits earned, dividends paid and amounts transferred from Profit and Loss Account to Reserve Fund in l924t and in each subsequent year up to

1934.

(d) -Copies of Trading, Profit and Loss Accounts and Balance Sheets for the ten years 1924 to 1933. 126. The Commission visited all capital cities and many country centres in each State, and representatives of the Master Bakers' Associations in each State gave evidence before the Commission; in addition many indiv-i.dual master bakers gave evidence and supplied information with regard to their bread -baking practices, the financial position of their businesses, and their general experience of the industry during recent years. These witnesses were drawn from those whose accounts had been investigated by the Commission's accountants, and also from among those who do not keep accounts in a form suitable to the requirements of the Commission.

127. The bakers' returns used for the preparation of the financial statements included in this report were carefully examined ; only those which were complete and, in the opinion of the Commission, accurate, were used. Investigations have shown that in a large number of bakeries, especially among the smaller businesses, proper books of account are not kept.

128. The adoption, throughout the trade, of a simple and effective system of bookkeeping on standard lines is considered most desirable in the interests of all engaged in the industry.

;

47

129. The Commission is satisfied that the range of bakeries used as a basis for estin1ating the economic position of the industry is sufficiently comprehensive, although the number of large bakeries included is proportionately greater than that of s1nall bakeries because comparatively few of the latter' were able to supply inforn1ation in the form required. The sarnples have been drawn from bakeries of various types and sizes operating in all the c:bief cities and suburbs and in many country centres throughout the Commonwealth.

130. Table 32 illustrates the extent to which the investigated bakeries represent the bread supply of the areas concerned:-TABLE 32.

BEING A COMPARISON OF THE TONNAGE OF FLOUR USED ANNUALLY BY BAKERIES WHOSE FINANCIAL RECORDS WERE INVESTIGATED BY THE COMMISSION, WITH THE ESTIMATED QUANTITY USED IN THE MANUFACTURE OF BREAD BY ALL BAKERIES DURING 1933.

(1) I (2) I (3) I (4)

Number of Bakeries ,', Quant!ty of Flour Estim, Quantity of Percentage Column (2)

I t! t d used Annually by

1

Flour Uoed A_nnu_lly Be"r' to Column (S)

nves ga e · · :Baker1'es Column (1). 11 13 k " s ·

a a eues.

1

I 'r I P t Tons.

New South Wales-

I

ons. . ,

1

er cen .

Metropolitan 73 42,148 97,440 43.26

Country .. 57 11,206 96,593 11.60

Victoria-Metropolitan 49 26,118 78,248 33.38

Country .. 20 8,407 58,688 14.32

South Australia-Metropolitan 28 8,592 24,659 34.84

Country .. 7 740 18,900 3.92

Western Australia-Metropolitan 26 6,156 16,364 37.62

Country .. 8 1,043 16,206 6.44

Queensland-Metropolitan 30 10,109

18

23,645 42.75

Country 3,760

Tasmania 29 4,280

45,713 8.23

17, 952 23.84

NoTE.-The quantities shown in column 3 are estimates and have been arrived at by multiplying population figures for the areas concerned (Census, 30th June, 1933) by the per capita consumption of bread figures as supplied by the Comm_pnwealth Statistician. In calculating figures for the country districts of the mainland States, it has been assumed that 10 per cent. of the country population bake their own bread.

131. For the purpose of an analytical survey of the various items of capitalization and cost, a sub-division of the bakeries investigated by the Commission was necessary. The size and extent of the 1nechanisation of the bakery are the two main factors influencing both capitalization and cost as between one business and another.

132. The Commission decided. upon the following sub-divisions under which the costs of the various bakeries have been grouped:-(i) "Hand" bakeries, comprising those without any mechanical plant whatever in the bake house.

(ii) "I\'Iachine and Hand" bakeries, comprising those where the mixing of the dough and/ or other work involved in the making and baking of bread is performed partly by hand and partly by machinery. (In such bakeries the machinery consists. of at least a doughmixer-usually motor driven-and perhaps in

other cases a divider and moulder are also employed.) (iii) " Semi-automatic " bakeries, comprising those where a considerable amount of machinery is involved. (In such bakeries the equipment includes a "prover," and in some cases ovens with moveable floors , while in others travelling

conveyors for bread or dough are also used.) (iv) "Automatic" bakeries, comprising those where travelling ovens are used in addition to other mechanical equipment mentioned in item (iii).

133. The "machine and hand" sub-divisions (i) and (ii) have been further subdivided according to the quantity of flour used· each week, viz. :-(a) Bakeries using up to 5 tons ; (b) those using from 6 to 10 tons, and

(c) those using 11 tons or more.

48

134. As the number of returns received fron1 bakeries of some of the larger groups was not sufficient to permit of the costs being displayed without reveaJing the confidential particulars of the business to which they related, it was necessary for the Commission to on1it fig ures in respect of a few large businesses. The costs thus excluded, however, did not show any marked variations compared with those referred to in the following sub-section.

(b) COSTS OF PRODUCTION, DISTRIBUTION AND ADMINISTRATION. (i) PROCEDURE ADoPTED IN A.NALYSING CosTs. 135. Costs have been computed on the basis of the 2-lb. loaf of bread. In respect of New South Wales, Victoria, South Australia and Western Australia, 1,330, Queensland, 1,345, and Tasmania, 1, 350 2-lb. saleable loaves, have been ac-cepted as being obtainable from each ton of flour used. The relationship between the weight of flour consumed and the number of loaves produced is discussed in Section V. (b) (ii).

136. The costs have been based primarily on the 1933 returns. Investigations showed that fl8ur and wages were the only items of cost in regard to which there were any material variations between 1933 and 1935 . . All amendments to the wages in terms of Arbitration Awards in each State up to June, 1935, were examined and all necessary adjustments were n1ade to

wages expenditure in each case to bring the costs to the basis of 30th June, 1935. The procedure which has been followed in dealing with the various items of expenditure and other costs is explained hereunder :-Production.

137 . Salaries and Wages .-These items include wages of foremen bakers, operative bakers, improvers, doughmakers, bakers' assistants, apprentices, and any other employees engaged in the bakehouse on bread-making. In cases where the proprietor of the business or any member of his family was employed in the bakehouse, but not in receipt of a reasonable salary or wage, an amount has been included in the costs at award rates either for a foreman baker, or a baker, according to the number of en1ployees engaged in the bakehouse or for the class of work upon which the individual was employed. If the person concerned was engaged only part time in the bakehouse the amount included to cover his salary, computed as above, was apportioned on the basis of the time actually spent in each section of the business .

138. Materials-Other I ngredients and actual expenditure on such items

as compressed or " spontaneous " yeast, improvers, malt, milk, salt, . &c., has been included under this sub-head. 139. Fuel (Fuel Oil, Coke, Wood, &c.).-This expenditure covers the cost of fuel for the bakehouse ovens only.

140. Power and Light, included Power and Light Used in the Bakehouse.-ln cases where separate meters are not installed master ·bakers were asked to make an apportionment on the basis of the estimated consumption in the' bakehouse. 141. Repairs and Upkeep of Bakehouse Plant and Machinery.-This expenditure covers all repairs to and/ or replacement of, bakehouse plant and equipment, including rnixers, troughs, dividers, ovens, tins and other small items of plant. Any items of expenditure of a capital nature have been eliminated.

142. Insurance.-This expenditure covers Workers' Compensation or any similar type of insurance premium paid to cover bakehouse employees ; also insurance against fire, explosion, and other risks associated with bakehouse plant, machinery and equipment. 143. Depreciation.-Depreciation has been included at the rate of 5 per cent. on the " reducing value " of the ovens, plant and machinery of the bakehouse.

144. In some bakeries, the ovens form part of the building and it was not possible to obtain fro m the accounts their book value as a separate iter.a. In such cases, depreciation was considered to be provicled for in the 2 per cent. allowed as depreciation on buildings. 145. Other production Costs.-Any items of expenditure considered to be properly chargeable to production and not included under any of the foregoing sub-heads have been treated as" other production costs ".

Distribution.

146. Salaries and -Wages.-This item includes wages of yard foremen, loaders, emergency men, carters (motor or horse-drawn vehicles), counter assistants and others employed solely in the distribution of bread. If the proprietor or any other member of his family was engaged on distribution but was not in receipt of a reasonable salary. or wage, an amount has been included

in the costs at the rate prescribed under the award applicable to the work upon which the person or persons concerned were actually engaged. If they were employed on distribution work not governed by any court a ward, the basic or living wage has been allowed ; if they were only employed part time on this section of the work, an appropriate apportionment of the salary or

49

waO'e charge computed as above has been included. Statements received from bakers showed that, in many instances, the wife or daughter of the proprietor rendered assistance by attending to shop sales as requir:ed throughout the day. ln all sueh cases an appropriate salary charge was included in the distribution costs.

147. Iforse Feed and Stable Expenses , &c.-This expenditure covers the cost of such items as fodder and bedding, shoeing, veterinary fees, replacement of horses, repairs to carts and harness, and insurance of stable assets.

148. The Commission did not allow depreciation of horses, but included their replacement as a charge against working expenses. Any purchased additions to the number of horses has been treated as capital expenditure.

149. Motor Expenses, &c.-These charges include running costs, repairs, registration, insurance, licence fees and all other expenditure incidental to the upkeep of motors used in connexion with bread distribution.

150. Power and Light.-In n1any cases it was impossi ble to ascertain the proportion of expenditure on power and light properly chargeable against distribution. Consequently, the , amounts have been allowed to remain as charges against production or administration, according to the allocation by the proprietors.

151. Insurance. - This expenditure includes insurance on distribution assets, other than horses, carts, harness and motors.

152. Depreciation.-Depreciation has been included 'at the rate of 10 per cent. on the reducing value in the case of carts, harness, &c., and 20 per cent. on the reducing value in the case of motors. ·

153. Other: Costs .. -Any items of expenditure COJ?-sidered to be properly

chargeable to diStributiOn and not Included under any of the foregmng sub-heads have been treated as " other distribution costs ".

Administration.

154. Salaries and Wages.-This expenditure includes all salaries and wages paid in connexion with the managerial or administrative side of the business, such as those of the manager, secretary, and office staff generally.

155. In cases where the proprietor performs a certain amount of managerial work, in addition to his duties in the bakehouse or on distribution work (provided the business is of sufficient size to warrant it) a nominal amount in addition to t hat included under production and/or distribution has been allowed against administration. Where the duties of the proprietor were not defined and he was engaged primarily in supervision, the living or basic wa ge has been

allowed as an administration cost if the flour used did not exceed 5 tons per week. Where a business was large and was carried on by a sole proprietor who performed on]y managerial duties, an allowance by way of weekly salary to cover his services has been rnade at the rate of £1 per ton of flour used per week, with a maximum salary charge of £10 per week. If the flour used exceeded 10 tons per week, the amount to be allowed by way of proprietor's salary in any such

cases has been determined by the Commission according to the merits of each case.The foregoing principles have been also applied where a member of the proprietor's family was engaged in a managerial capacity.

156. It was found that in some bakery businesses the wife or daughter of the proprietor renders assistance to the extent of writing up the books of account and other records, without monetary consideration. In · such cases, an amount has been .included as a charge against administration calculated on the basis of the prescribed living wage for females, according to the time actually employed on the work.

157. Directors' Fees.-Where considered reasonable, the amount paid by way of directors' fees been allowed as a charge against administration. ·

158. Printing and Stationery, Telepho ne , Travelling and Legal Expenses. -All expenditure on the above-mentioned items has been allowed as a charge against administration, unless examination of the books of account revealed the necessity for amendment. 1

159. Discounts.-Very little had been charged to working expenses on account of discounts allowed. 160. Advertising, Subscriptions to Tra_ de Associations, Audit and Accountancy.-Vnless considered to be unreasonable, all expenditure of this nature was allowed.

50

161. Bank Oharges.-These include only charges for keeping accounts; at this stage of the analysis interest on borrowed money was not included. 162. Bad Debts.-Amounts actually \VTitt en off on account of bad debts have been included as expense items. 1\iany bakers only include as earnings the amount actually collected and, consequently the Commission recognizes that t he amounts ascertained and treated as bad de bts cannot be regarded as fully including all losses under this head.

163. Other Ad1ninistration Costs.-Any items of expenditure considered to be properly chargeable to administration and not included under any of the foregoing sub-heads have been treated as "other administration costs".

Other Costs.

164. Rent.-The Commission has allowed 5 per cent. on the book value of the bakers' interest in the ownership of the property for the purpose of providing a rental charge, where the land and buildings are owned or partly owned, by the baker. ·

165. Rates and Taxes (other than Income Tax).-The actual amounts paid for local rat es and taxes have been included in the costs. Federal and State income taxes have not been t aken into consideration.

166. Depreciation on Buildings.-After careful consideration, the Commission decided to allow, as an item of cost to bakery proprietors who owned their business premises, 2 per cent. on the book values of brick buildings, and 3 per cent. where the premises are constructed of wood or partly of wood and partly of brick.

167. Interest on Borrowed Money.-This item represents interest actually paid on borrowed money used in the bakery businesses in respect of mortgages, loans, advances and bank overdrafts. No interest or return upon the baker's own capital or on share capital in the case of companies, is recognized or included under this head.

168. Flour.-The Commission is aware that many bakers are able to buy their flour in advance according to their judgment of the market and, in this way, sometimes are able to reduce the cost of flour . . On the other hand, many bakers are not able to take similar advantage of the market. Again, there are other bakers who, by paying cash within a specified time or for other reasons, are able to secure trade or special discounts. In view of the complications mentioned, the actual cost of flour has not been shown in the tabulated statement of costs.

Consequently, the Commission decided for co1nparative cost purposes, to include flour at a uniform price of £11 per ton, after allowing for the sale of bags, in respect of both metropolitan and country areas. The relation of the ,cost of flour to the cost of the loaf is the subject of detailed consideration in Table 35, paragraph 186.

(ii) THE NuMBER oF LoAVEs PRoDUCED FROM ONE ToN oF FLouR. 169. The matter is of major significance in the investigation because it indicates the measure of the baker's ability and because any discrepancy may appreciably affect the calculation as to costs and profits. The number of loaves obtained from each sack of flour depends on a variety of factors.

170. A certain number of burnt, broken or unsaleable loaves are made from time to time in every bakery business. This number should not be high when reasonable efficiency is maintained. Losses due to such causes are allowed for in the computations.

171. The amount of water which is worked into the dough during mixing varies. The inherent quality of the flour sets some limit to this amount; some flours absorb much more water than others without becoming unworkable. The strong flours typical of Canadian hard wheats are particularly good in this respect. In Australia, the flour from some wheats­ and especially when these are grown under appropriate conditions of climate and soil-are very satisfactory. Such varieties as Comeback, Mirnster and Pusa No. 4, particularly when grown in drier districts, give high quality flours especially when the climatic conditions happen to be favorable during the period of ripening and harvest. The subject was dealt with at some length in the Commission's Second Report (see pages 185 to 192.) A comprehensive survey of this

matter over a number of years is overdue (see Second Report, paragraph 311.) At present it can be said that most Queensland wheats and those grown in certain districts in New South Wales, Western Australia and South Australia are of high quality ; in Victoria, the production of high grades is very limited, and at present the flour from Tasmanian wheat is not well suited for bread-making. While in general it is to be expected that rather more loaves will be obtained

51

from the sack of flour in Queensland than in other States, the divergences are not as great as might be expected because many millers exercise considerable discretion in their wheat purchases in order to maintain the quality of their flour. This practice is not universal, so some degree of discrepancy in the number of loaves obtained per ton of flour is to be expected.

172. The legislation governing the weights at which bread may be sold varies from State to State and is detailed in Table 33. The first column shows the title of the Act concerned. According to these Acts bread may be sold in loaves of 1, 2 or 4 lb. in all States other than South Australia, where only the 2 lb. loaf is recognized. Column 2 of the table shows the extent to which special classes of bread are exempted frorn the general weight regulations. The notable exceptions relate to Vienna bread in the case of Victoria and to the lower weight standard in

Tasmania for all loaves baked singly, i.e., not in batches. As a result of these exceptions, Victorian data on loaves per sack of flour wi1l be higher wherever the proportion of Vienna bread is considerable. In Tasmania also the number of loaves per sack should be greater on account of the lower weight demanded for the type of loaf which is most fr equently made. Column 3 specifies the parties who are required to have accurat e scales and weights. Column 4 shows the maximun1 period which may have elapsed since baking, for the test to be valid. Column 5 shows the number of loaves which are to be weighed when a test is being made. Column 6 shows the penalties for infringement of the regulations and various special provisions.

TABLE 33.

LEGAL REQUIREMENTS IN THE VARIOUS STATES REGARDING THE WEIGHT OF BREAD.

State and Title of Act.

(1)

New South Wales,

Bread Act 1901,

amended 1923 and 1926

Victoria, Bakers' and Millers' Act 1928

Classes of breadstuffs exempt from Regulations.

(2)

French or fancy

bread and rolls

Rolls (less than 8 oz.) and Vienna bread

Queensland, Health Rolls (less than 8 oz.) Acts of 1900,

amended 1917 and 1922

South Australia,

Bread Act 1891,

amended 1893 and 1908

Western Australia, Bread Act 1903,

amended 1908, 1911 and 1915

Rolls or French rolls (less than 4 oz.)

Rolls (less than 8 oz.) Bread where spe­ cially ordered in writing by pur­

chaser

Parties required to have accurate scales , and weights.

(3)

Bakers, sellers, and deliverers

Bakers, sellers, and deliverers

Bakers ..

Sellers and de­ liverers

Sellers and deli­ verers

Maximum period aft er baking within which test of bread is valid.

(4)

24 hours .. ..

24 hours .. ..

18 hours

No specifications ..

Any bread on pre­ mises of bakers or sellers or in carts, &c., is deem ed to

be intended for

huma n con sump­ tion and sale

Tasmania, The sale of 1. Rolls (less 8 oz.) Bakers and shop 24 hours . .

the Bread Act 1896 2. Fancy bread sellers

baked separately and crusted all

over in loaves of wt. 14.30 and 60 I

oz. only

Number of loaves t o be weighed when t es t is being made.

(5)

Four of same denom­ in ation or size or

in any larger or

smaller quantity as may be found

convenient

Not less than six (if there are that

number) of same denomination or size or as to such

large number as is found convenient

Four of same denom­ ination or size or in any larger or

smaller q uan tity as may be found

convenient (Bread weighed only in bakeries)

No specifications ..

Penalties for infringe­ ments of Regulations and Special Provisions.

(6)

I. Maximum penalty 5s. per oz. deficient* 2. Onu:s of proof re­ garding time bread

has been baked is on baker

I. Maximum penalty 2s. 6s. per oz.

deficient 2. Bread, once de­

livered to cus­

tomers will not be tested for weight 3. t

I. Maximum p enalty, 5s. per oz. defi cient* 2. Onus of proof

regarding time

bread has been

baked is on baker

Maximum penalty, first offen ce 40s.

subsequent offence, £10

N ot less t han six if Maximum penalty, t here beth atnum- £20

her of same de­

scription and size and if not then as to as ma ny as there m ay be

Not less than six (if there a re that

number ) of same denomination or size or as to such

large number as is found convenient

Maximum penalty , 2s . 6d. per oz.

deficient*

• u ·nless accused t enders a valid excuse, e.g., that an accident in baking or otherwise occurred, or that t he condition was occasioned by or through some contrivance or confederacy to injure the party accused. t It is not sufficient to support a conviction that from this greater number a smaller number- though still greater than six-can be picked out and when weighed ahow a deficiency.

173. These regulations are framed for the prote?tion of the public in the matter of the weight of the loaves. The inspectors of the Departments occasional

and now and again prosecutions result. The ComilllSSIOn _has no .reason t o thmk that there 1s widespread evasion of the regulations, but as few housewrv s mgh t he loaves t hey buy, it is F.403.-4

52

clear that at tin1es of extensive and intensive competition and cut prices the weight of the loaf will naturally be as near the legal margin as it can be made. The present regulations leave much to be desired (see paragraphs 188 and 189 of this section). ·

174. Under normal bakehouse procedure, the dough intended for a 2 lb . loaf is cut off and weighed prior to the final moulding. The majority of bakers who gave evidence informed the Commission that they " weigh off" the dough at 2 lb. 4 oz., except in Tasmania, where the custom varies between 2 lb. 2 oz . and 2 lb. 4 oz., owing to the different legal requirements. In several States there have been individual bakers who have admitted that their practice was to use 2 lb. 3 oz ., or 2 lb. 3! oz. only.

175. The question of the actual composition of the· bread is also one of importance. The following is a de:finition of bread as laid down in the various Food and Drug Regulations in New South V'iales, Queensland, South Australia, Western Australia and Tasn1ania :-Bread is the porous substance obtained by the moistening, kneading, pani:fication and baking of flour, with provision for the mechanicsJ separation of the dough by air or carbonic acid gas, and properly baked. It shall contain not more than forty-five parts per centum of water in any part of the loaf; it shall yield not more than two parts per cent um of total ash, nor more than two-tenths of one part per centum of ash insoluble in decinormal hydrochloric acid. It shall not contain any foreign mineral substance except salt (sodium chloride) ; and ten grammes of the crumb taken from the centre of the loaf shall not contain more acid than is required for the neutralisation of two cubic centimetres of decinormal solution of sodium hydro:xide.

176. These provisions are intended to prevent fraud in connexion with the quality of the bread and the ingredients used. The maximum moisture content is specified ; flour adulterants are prohibited and unduly acid bread must not be sold. These regulations also have the effect of rendering illegal the use of some of the " improvers " which have come into vogue in recent years. The use of such substances for the purpose of improving the quality of the bread does not seen1 to be undesirable, provided that they are not of such a nature as to be injurious to health. The need for permitting their introduction into the dough has been recognized in Victoria in recent legislation under which the use of alkaline acid phosphate, ammonia chloride, bromates and calcium sulphate are permitted up t o specified amount. It

would appear that in other States the authorities adopt a tolerant attitude on the matter.

177. 'rhe baking trade com1nonly accepts the figure ·1330 as being indicative of the average number of saleable 2lb. loaves made from a ton of flour, and, although some bakers make careful checks of their output from tin1e to tin1e, a large number do not adopt such precautions. The attitude of the latter group .is that they "weigh off" the dough at 2 lb. 4 oz. under a "rule of thumb " procedure. -

178. The Comnussion obtained by letter the experience of a large number of bakers in this matter. The replies were varied; while some informants stated that their results varied widely from ti1ne to t ime vvithin defined limits, others stated an average figure . The result of the inquiry is set out in Table 34 in which :the replies have been sorted out into classes according

to the number of 2lb. loaves obtained from a ton of flour . TABLE 34.

Class limits, i.e., Number of bakers who obtained: New South Victoria.

I

South Western

I

Queensland. I

Tasmania. Wales. Australia. Australia.

Less than 1,280 loaves . . . . 5 2 .. 3 3 . .

Between 1,295 and 1,304 loaves . . 10 8 .. 7 7 2

Between 1,305 and 1,314 loaves . . 5 1 1 3 1 ..

Between 1,315 and 1,324 loaves . . 13 13 7 10 6 ..

Between 1,325 and 1,334 loaves . . 42 31 2 19 26 8

Between 1,335 and 1,344 loaves . . 13 5 .. 4 2 . .

Between 1,345 and 1,354 loaves . . 17 3 2 3 16 1

Between 1,355 and 1,364 loaves . . 6 2 . . . . 6 3

Between 1,365 and 1,374 loaves . . 7 1 .. . . 4 1

Between 1,375 and 1,384 loaves . . 1 . . .. . . . . 2

Between 1,385 and 1,394 loaves . . 2 4 1 1 4 ..

Between 1,395 and 1,404 loaves . . 1 . . . . .. 2 3

More than 1,404 loaves . . . . . . . . . . . . 1 1

122 70 13 50 78 21

179 . The frequency .distribution of the data illustrates either the wide differences jn efficiency between bakers in respect to the yields of loaves they obtain or the lack uniformity in the estimates which son1e of them are able to make on the matter. It may be Inferred that a figu:J?e of 1330 is reasonable for New South .but is a?- understatement for at lea.st a moderate number of bakers in Queensland. In V1ctona, 1330 IS an acceptable figure especially

53

having regard to the regulation 'vith reference to Vienna bread of which a considerable quantity is sold. In Western Australia, 1330 is a reasonable average; for South Australia the same figure is reasonable, but the data are not adequate. Finally, in Tas1nania the figure for the average should be higher largely owing to the lower legal weight of the loaf when crusted on all sides.

180. The Commission endeavoured to obtain other evidence on the point from the statistical information contained in the bakers' answers to questionnaires ; there were many complications owing to the amount of rolls, buns and ViennaJ loaves which can easily lead to an error of 5 per cent.

181. Actual witnesses when questioned on the 1natter gave varying replies of which 1330 was by far the most frequent. There were smne 1nen who boasted of larger figures obtained under test, but in several cases these men had omitted to record the amount of flour used in "dusting", i.e., the flour used to reduce the stickiness of the surfaces of the "divided" pieces of dough prior to baking. Officers in charge of bakehouses of government institutions stated that they were able to obtain somewhat better results. In some instances, however, they were referring to "batch" bread which loses rather -less weight during baking and, in most cases, their conditions of work are not quite so strenuous as in the average cmnmercial bakehouse ; a,nd there would be little or no rejection of bread on account of damage.

182. The present yield of saleable loaves rnust not be taken to be a final figure for all time. The average yield will increase in the future with improven1ent in the quality of the flour. Such an improvement will follow the more intense study of the problem which is long overdue and which the Commission elsewhere recon1mends.

183. In this connexion it is interesting to note that in England, the Royal Commission on Food Prices (1925) accepted the figure of 1335 loaves to the ton of flour as an average.

184. The general result is that, while 1330 2-lb. saleable loaves can be made from a ton of average quality Australian flour in most mainland States, the figure of 1345 is probably more accurate for Queensland, and in Tasmania, owing to rather different legal requirements, 1350 should be obtained. As the costs have been worked out for each State separately, the consequent corrections can be readily applied. It is noteworthy that the variation is of the order

of 1 per cent., so that in a 2-lb. loaf cost of 4. 5d., it represents . 045d.

185. The large majority of bakers fi11d it necessary to use improvers of fairly standard types such as sugars, malt or certain chemicals. Apart frmn these, sorne bakers also add other ingredients such as dried or fresh milk, oils, fats, &c. These have the result of increasing the yield of loaves as well as improving palatability. This extra yield is largely offset by the extra

cost.

186. Table 35 indicates the difference in flour cost per 2-lb. loaf when flour is at various prices between £8 and £15 per ton and the yield of loaves varies from 1310 to 1370-TABLE 35.

Loaves per ton of flour.

Flour per ton.

1,310. 1,330. 1,350. 1,370.

COST OF FLOUR PE R 2-LB. LOAF.

d. d. d. d.

£8 1.47 1.44 1.42 1.40

£8 2s. 6d. 1.49 1.47 1.45 1.42

£8 5s. 1.51 1.49 1.47 1.45

£8 lOs. 1.56 1.53 1.51 1.49

£9 1.65 1.62 1.60 1.58

£9 lOs. 1. 74 1. 71 1.69 1.66

£10 1.83 1.80 1.78 1.75

£10 lOs. 1. 92 1.89 1.87 1.84

£11 2.01 1. 98 1.96 1.93

£11 lOs. 2.11 2 .07 2.04 2.01

£12 2.20 2.16 2.13 2.10

£12 lOs. 2.29 2.25 2.22 2.19

£13 2.38 2.34 2.31 2.28

£13 lOs. 2.47 2.43 2.40 2.36

£14 2.56 2. 52 2.49 2.45

£14 lOs. 2.66 2 .61 2.58 2.54

£15 2.75 2. 71 2 .67 2.63

54

187. Naturally the question of yield becomes more important as tQe cost of flour rises. When that cost is £12 per ton, the extra profit to a man who obtains an extra twenty loaves to the ton is three-hundredths of 1d. per loaf or 3s. 4id. for every ton of flour used. This saving in cost is about one-eighth of the amount of profit determined by the Commission to be fair and

reasonable, viz., !d. per loaf or 27s. 9d. per ton of flour used.

188. The laws regarding the weight of loaves are in some respects unsatisfactory. As they now stand the baker has to take all the risks of the loaf drying out during the period shown in Table 33, Column 4. The result is that one baker " weighs off" the dough slightly heavier during dry, hot weather, while another baker n1ay be prepared to take a chance and "weigh

off " the dough at the normal figure. The result is that the public gets a greater weight of bread on a dry matter basis from the first baker, but the difference is not noticed.

189. The present laws are based upon unsound principles and require recasting. Loaves of bread may be well over the statutory weight when delivered to the customer soon after they have been baked, but may be under the statutory '\Veight at the end of a hot, dry day. The master bakers are justified in their criticisms of the present Jaws and regulations when they point out that the insistence upon a certain minimum weight of a loaf of bread at the end of a statutory period of hours tends to the underbaking of the ]oaf rather than the production of the best possible loaf by baking to the proper extent. The intention of the laws and regulations is to ensure to the purchaser a certain minimum amount of foodstuffs in the form of bread when calculated back to the moisture-free basis. Therefore, a recasting of the laws and regulations, to ensure to the consumer the mirumum amount of actual foodstuff and proper provision for the

variations in the moisture content of the loaf, would be advantageous both to the consumer and to the baker. Assuming that the 2-lb. loaf of bread in its most palatable and nutritious form should contain normally 33! per cent. of moisture and 66-§- per cent. of dry (moisture-free) foodstuff, then the loaf should be allowed to weigh less than 32 oz. as the moisture content is lower than 33! per cent. and should weigh more than 32 oz. when the reverse is the case. The

development of an instrument whereby the average moisture content of six or twelve loaves of bread could be determined rapidly should not be difficult, and the inspectors would soon be able to determine, with a close approximation of accuracy, the relation between the ascertained weight of a certain number of loaves and the moisture content, and further, the nett weight of

moisture-free foodstuff.

(iii) THE PRICE oF FLouR AS A FAcToR IN BAKERs' CosTs. 190. The amount paid for the :flour used in the bakehouse is the most important of the bakers' costs, and the Co1n1nission in its investigations has had to give careful consideration to the many factors and conditions operating in the industry, all of which directly or indirectly

affect this item.

. 191. Usually in each State there is a "declared price " of flour which is fixed by the Flour Mill-owners' Association, or by agreement between fiour-nullers. In Queensland, the Price-fixing Commission fixes the maximum price which may be charged for flour. The terms of sale vary from State to State in the following manner :-

New South Wales.-'The declared price of flour is the same throughout the State except ·for certain regions where there are no mills and long haulage is necessary. In Sydney, and in country towns where there is a mill, the price includes delivery at the bakery, but the baker has to pay the cost of stacking. In towns without mills the price is " on trucks " at the local

station. A discount of 2s. 6d. per ton is allowed for cash within seven days.

to 1st September, 1935, in the metropolitan area, the declared flour price

covers delivery and stacking in the baker's loft. In the country, the price is scheduled at particular stations and is virtually a basic price plus the freight frorn the nearest mill. This price includes delivery to customers' premises in the case of a mill town, but in towns without mills the price is "on trucks " at the local railway station,

Discounts for cash with order are :-7s. 6d. per ton for 100 tons or more. 5s. per ton for 50 tons or more. 2s. 6d. per ton for 25 tons or more. On and after 1st September, 1935, the following selling and deli very terms were adopted by the Victorian Flour Mill-owners' Association :-

Discount for cash with order-On a minimun1 quantity of 50 tons, 5s. per ton. On a n1inimum quantity of 12 tons, 2s. 6d. per ton.

55

If delivery is not taken within six months from date of the order and payment, the flour may be either delivered or a storage charge at the rate of 2s. 6d. per ton per month thereafter until delivery 1nay be imposed.

Loyalty Rebate-A loyalty rebate of-- ,

5s. per ton is made to every purchaser who delivers a Statutory Declaration stating that he has not purchased any flour or wheaten meal from any person or company other than a member of the Association or an approved miller. 2s. 6d. per ton to the Master Bakers' Organization representing the metropolitan

area in respect of every ton of flour delivered to every baker or pastry cook in the area defined as the metropolitan area, and 2s. 6d. per ton to the Master Bakers' Organization representing the country portion of Victoria on every ton of flour delivered to every baker or pastry cook outside

the metropolitan area. .

Cartage Allowance.-Delivery of flour n1ay be made to buyers in the metropolitan area of Melbourne and in towns where there is a flour mill and in such other towns as may be specially provided for in this respect or alternatively, an allowance not exceeding 2s. 6d. per ton be made to such buyers in lieu thereof. ·

Special Selling Arrangements.-There are special selling arrangements under which members may sell flour or wheaten meal to persons, firms or companies from time to time determined by a general meeting or by the Committee. These arrangements provide that the Association price be charged less a maximun1 discount of 12s. 6d. per ton, payment to be made within 30 days after delivery and delivery to be made within three months after date of order.

Western Australia.-In the metropolitan area, flour is sold "ex mill" or " on rail" or delivered cartage fre e to buyer's store or bakehouse. Where the buyer does his own cartage no allowance is made. The basic price is the same in Geraldton as in Perth but, at other country mills, it is 7s. 6d. per ton lower. Thus, there is a separate price for every siding in the State based on its relative position to the nearest mill.

A rebate of 2s. 6d. per ton is paid to the Master Bakers' Association on all flour sold to its members and a discount of 5s. per ton is allowed to the baker for cash within seven days.

South Australia.-In South Australia the declared price of flour is uniform "as. far as Quorn on the mainland ". This price includes delivery into the bakehouse and (in the metropolitan area) stacking. No differentiation is made between a mill town and a non-mill town. Outside the metropolitan area if the baker takes delivery " on trucks " or at the local mill, he receives an allowance of Is. 6d. per ton in lieu of cartage.

The price quoted from time to time includes 5s. per ton for "loyalty" rebate and cash discount. "Loyalty" means loyalty to the Association and not to any one mill within the Association. The 5s. provides for 2s. 6d. loyalty and 2s. 6d. discount within seven days of delivery in the metropolitan area, and within fourteen days in the country.

192. Many bakers prefer to have flour in their stores for a period before using it.· This is particularly the case at the beginning of the year when the mills may be using the new season's wheat. Apart from the question of " maturity " some bakers, who are in a position to buy quantities of flour, increase their stocks when, in their judgment, a rise in price is to be expected. Many millers make a practice of advising their customers of impending price changes and, in some cases, give three days' notice of variations as . part of their business policy.

193. In the past, millers sometimes made it easy for bakers to speculate on the price of flour by permitted" forward" purchases on a" payment on delivery" basis. However, difficulties arose in cases when the baker's judgment was at fault and the price of flour fell during the period over which he had contracted to take delivery of the flour, because in some cases this speculative practice led to default by bakers·. In effect, the millers were carrying the risks involved and the flour-millers' associations have now adopted a policy that no large orders are accepted unless

payment is made with the order.

194. In analysing the flour item in the cost records of the bakery businesses for the year 1932-33, it was found that in many instances the average price paid per ton was lower than the average market price quoted by the flour-millers' associations. In other cases, the average price paid was than the average of daily prices throughout the year. Table 36 is

indicative of the very considerable divergences which are disclosed by this examination. The explanations of these divergences are various. They are partly caused by successful or unsuccessful speculation by bakers as to the future course of flour prices, but in cases where the prices paid are low, they are sometimes due to the of flour at prices below , and often

considerably below, the price as declared by the flour-millers.

TABLE

36.

TABLE

SHOWING

THE

AVERAGE

HIGHEST

AND

LOWEST

PRICES

PAID

FOR

FLOUR

(LESS BAGS)

BY

THE

INVESTIGATED

BAKERIES

IN THE

VARIOUS

,GROUPS

AND

THE

AVERAGE

DEULARED

PRICES

FOR

T H E

FI N ANCIAL

YEAR

1932-1 9 33.

Hand-1-

5

ton s .

A rea .

P r i c es

pai d p e r

ton.

A v e r a g e o f gr oup. Low e s t

High

e st

a v e r age

m grou p . ave r age

m g r oup .

£

s. d.

£

s. d.

£

s. d.

Sydney

..

9 15 1 8 6 8 10 4 1

Melbourne

. .

8 1

1

6 5 2 9

0 0

Adel a ide

..

7 18 6

611

3 8 18 2

Perth

..

8 2

10

7 8 3

8 7 9

Brisbane

. .

10

8

1

10

1

1

11

0 0

Tasmania

· .

8 13 3 7 13 9

911

6

.

.

Ma c

hine

and

Hand-16

ton s

and

ov e r .

Area.

Prices

pa id per

ton.

Av e

rag e of group. Low

est in div

id ua

l H i ghest

ind iv

idu a l

ave r a g e in gr ou p . average i n g r o up .

£

s. d.

£

s. d.

£

s. d.

Sydney

..

9 8 1 8 16 2 10 14

0

Melbourne

..

7 8 1 6 19 7 7 13 1

Adelaide

. .

. .

. .

. .

Perth

. .

..

. .

. .

Brisbane

. .

10

5

10 10

3

4

10 11

4

Tasmania

. .

..

. .

. .

T y p e a n d T o

nn age.

Ma c

hin e

and

H a nd-1-

5

tons.

M 2 ch in e

an d

Hand--6

- 10

tons. Ma chine

and

Ha n

d-11-1

5 t o ns.

Pri ces

p ai d

pe r t o n.

P ri ces

p aid

p er t o

n.

Prices

pa i d p e r t o

n.

Low e

st

indiv

i d u al

High

e st individ

u a l A v erage of gr

oup

.

ind h

1d=

l i Hi g h " t

individ u al

.

! J, o w e

st

ind i v

idu a l

\Hi ghes t i

nd i v

idual

Av erage o f gro u p . ave r age i n

group

. a v e r age in group.

avera

g e m

grou

p .

average

m g r o u p. A v e r ag e o f g r o

up.

ave

r age i n gro u p.

av er ag e i n g r o

up .

£

s. d.

£ d . £

s. d.

£

s. d.

£

d.

I

£

d.

£

s. d.

£

s. d.

£

s. d.

s. s. s.

911

3 8 14 6 10

17

2

9 1 0 6 7 1 8 5 10

1

7 9 15 7 9 4

0

9 14 6

8 2 8 6 8 4

8 13 3 7 1 5 3 6 10 9 9 9

0

7 1 5 5 7

2 8 8

0

8

7 18 3 6 12 6 8

17

10

7 12 3 6 1 4 3

9

1

8 7 1 5

11

7 7 10 8 2 3

7 14 4 6 5 8 8 1 2 3

*

*

7 17 10 6 17 3 9 1 6

9 19

11

9 16

0

10 1 2

0

10 6 2 9

15

6

11

3

4

t t t

8

0

3

7

5 6

I

8

17

1

I

8 6

0

8 6

5 9

0

5

. .

I

. .

..

T ype

a n d T o

nn age .

Semi-Automati

c -11

- 15

tons.

S e m i - A

utomatic

a nd

Au to

m at

ic - 16 t o n s a

nd ov

e r .

I Average d ecla r ed R a n ge of d ail y d

ec l a r e d

Pric

e s p a

id

p e r t o

n.

Price s

pa id

p e r t o n.

pr ice pe r

to n

pri ces

pe r

to n ( le ss b ags

).

( l ess

ba gs

).

Av e r a g e o f g

roup.

Lowest

indi v

idu a l H i g h es t i n d iv i

du a l Average of g

rou p . Low e

st

i. n di

v i dua

ll H i g h e

st

ave r a g e in g

rou

p . a v e r age i n gr

ou p .

ave

r ag e

m g r o u p .

averag

e

m group

.

From.

To .

£ 9

s. d.

£

s. d.

£

s. d.

£

s. d.

2 10 8

3

4

911

4 9 9 8

. .

. .

. . . . . .

. . .

.

6 17

0

. .

. .

. . .

.

. .

. .

. .

..

. .

. . .

. .

.

•

Machine

and

Hand

6-10

tons

and

11-15

tons

combined.

t

Ma c hin

e

and

b a nd

11-15

tons

and

over 16

tons

combined.

;

Includes

State

Flour

Tax

at

£1 lOs.

per

ton.

£

s. d.

£

s.

9 3 2 9 15

6 9 10 7 8

. .

..

. . .

.

. . . . . .

. .

d.

£

s. d.

£

s. d.

£

s. d.

4

t9

13 4

t9

1 4

t10

6 4

6 8

0

3 7 3 11 9 1 5

7 17

11

7 1 1 8 16 1

8 1 2 7 7 3 8 17 3

10 4

5

9

3

7 11 8 1

8 16 3 8 9

0

9 9

0

Ot

57

195. Apart from any failure of members of the flour-millers' associations to adhere to the declared prices, there are other millers, not members of the organizations, who effect sales at lower than the fixed prices. In addition, certain millers financially interested in bakery businesses appear to a1low them special rebates, or price concessions, in one form or another. These may take a direct form or be allowed through a cancellation of outstanding past indebtedness. On the other hand, some bakers are financially interested in flour mills and are able to obtain their supplies of flour at lower than the declared market price.

196. In addition to the usual trade and cash discounts, there are other rebates and forms of concessions which directly or indirectly lead to a reduction in the flour price. Although not illegal, son1e of these allowances or price adjustments appear to be in contravention of the agreed policy of the :Millowners' Association. Allowances are also made to the baker on the return of empty flour bags.

197. It is consequently necessary that all these rebates, concessions and allowances should be taken into consideration when computing the flour cost for the purposes of determining a .fair and reasonable price of a loaf of bread to the consumer.

198. In view of all the ciroumstances to which reference has already been made and, owing to the many and marked variations in the prices actually paid by bakers for their flour, the Commission decided, for comparative cost purposes, to include flour at a uniform price when computing the costs.

199. Assun1ing the price of flour at £11 per ton net (i.e., after deducting the value of the bags) and that 1330 2-lb. saleable loaves are obtained from one ton of flour, the cost of the flour content in an ordinary 2-lb. loaf is l.98d. Any alterations in the price of flour to the extent of 27s. 6d. per ton represents 0. 25d. in the cost of a 2-lb. loaf. In paragraph 186 will be found a table which shows the fractional charges in the cost of a 2-lb. loaf with flour at different prices, and with varying numbers of loaves obtained from a ton of flour.

200. A further investigation into the prices paid by bakers in Sydney for flour during the period July, 1934, to June, 1935, confirmed these facts. The flour invoices for 27 bakers for the whole year were examined and it was found that-Two had obtained their flour at an average price per ton of £1 or more below the

declared price ; Twelve had obtained their flour at an average price per ton over lOs. and less than £1 below the declared price ; Eleven had obtained their flour at an average price per ton over 5s. and less than

1 Os. below the declared price ; Two obtained their flour at an average price per ton under 5s. of the declared pnce.

201. A further point brought out by the data of Table 36 is that, in general, the larger bakery businesses obtain their flour at lower average prices than the smaller.

202. In the event of the adoption of a fixed home consumption price for wheat in Australia, the declared price of flour would be stable within narrow limits. This would eliminate speculation in flour by bakers and would leave discounts and special contracts or arrangements as the only causes for differences between individual bakers in this factor in the cost of bread.

58

(i v) THE AvERAGE C osT OF THE 2-LB. LoAF IN THE METROPOLITAN

203. The costs of producing a saleable 2-lb. loaf of

TABLE

SHOWING-( a) THE TOTAL EXPENDITURE OF THE I NVESTIGATED BAKERIES IN THE METROPOLITAN (b ) OTHER CHARGES, I NCLUDING RENTS, RATES AND TAXES (EXCEPT I NCOME TAX) AND

(c) THEIR AVERAGE COSTS PER TON OF FLOUR USED AND PER 2-LB. SALEABLE LOAF

State. Sydney. Melbourne.

N urn ber of bakeries . . . . .. .. . . 73 49

Tonnage of flo ur used .. .. .. .. . . 42147 . 73 2611 8.41

Cost Items. E xpendi· Cost per Cost per Expendi- Cost per Cost per

ture. ton. loaf . ture. ton. loaf.

£ £ 8. d. d. £ £ 8 . d. d.

P RODUCTION .

1. Salaries and wages . . . . .. .. . . 118,686 2 16 4 .508 71,000 2 14 4 .490

2. :Materials (ot her t han flour) .. .. .. .. 44,583 1 1 2 .191 30,914 1 3 8 .214

3. F uel .. .. .. .. .. . . 24,339 011 7 . 104 11 ,336 0 8 8 .078

4. Power and light .. .. .. .. .. 4,286 0 2 0 . 018 2, 187 0 1 8 .015

5. Repairs an d maintenance bakery and plant .. .. 13,998 0 6 8 . 060 4,754 0 3 8 .033

6. Insuran ce .. .. .. .. . . 3,244 0 1 6 . 014 1,296 0 1 0 . 009

7. D epreciation bakery plant and ovens .. . . .. 10, 296 0 411 .044 4,788 0 3 8 . 034

8. Other production co st s .. .. . . . . 848 0 0 5 . 004 295 0 0 3 . 002

9. P roduction costs (except fl our) .. .. . . 220,280 5 4 7 . 943 126,570 4 16 11 . 875

DISTRIBUTION .

10. Salaries and wages .. . . .. .. . . 202, 135 4 15 11 . 865 106,61 7 4 1 8 .736

11. Hor se and stable expenditure . . .. .. . . 33,361 0 15 10 .143 20,754 0 15 11 .144

12. Mot or expenses .. .. .. .. . . 32,351 0 15 4 . 139 5,274 0 4 0 . 036

13. Power and light .. .. . . .. .. 229 0 0 1 . 001 331 0 0 3 .002

14. Insurance (except on hor se-drawn and motor vehicles) .. 2,850 0 1 4 . 01 2 1,068 0 0 10 . 007

15. D epreciation-Vehicles, &c. .. .. .. . . 9,581 0 4 7 . 041 4, 134 0 3 2 . 029

16. Ot her distribution costs .. .. . . . . 2,559 0 1 3 . 011 434 0 0 4 .003

17. Total di stribution cost s .. .. .. .. 283,066 6 14 4 1. 212 138, 61 2 5 6 2 .957

ADMINISTRATION .

18. Salaries and wages .. .. .. .. . . 39,769 0 18 11 . 170 26,401 1 0 3 . 182

19. Direct ors' fees . . .. .. .. . . 1,027 0 0 6 .004 318 0 0 3 .002

20. Print ing ; Stationery ; Telephone ; Travelling ; &c. .. 8,472 0 4 0 . 036 3,238 0 2 6 .023

21. Power andlight . . .. .. .. .. 224 0 0 1 . 001 \ 129 0 0 1 .001

22. Discounts ; Advert ising; Trade Subscriptions ; Audit, &c . 6,329 0 3 0 .027 2, 185 0 1 8 . 015

23. Bank charges . . .. . . .. .. 135 0 0 1 .001 42 . . ..

24. Bad debt s wribten off . . .. . . .. 8,079 0 3 10 . 034 3,567 0 2 9 .025

25. Depreciation- office furnit ure .. . . .. 173 0 0 1 .001 223 0 0 2 . 002

26. Ot her administration costs .. .. .. .. 6,019 0 2 10 .026 1,344 0 1 0 . 009

27. Total administration costs .. .. .. . . 70,227 1 13 4 .300 37,447 1 8 8 . 259

28. T oTAL PRODUCTION, DISTRIBUTI ON AN D ADMINISTRATIO N COSTS (AS ABOVE ) .. .. .. .. 573,573 13 12 3 2 .455 302,629 1111 9 2 . 09 1

OTHER COSTS.

29. Rents, rates and t axes paid (except Income Taxes) and depreciation of buildings . . .. .. .. 18, 106 0 8 7 .078 19,852 0 15 2 .137

30. Interest paid on borrowed money .. .. . . 10,265 0 4 10 . 044 9,883 0 7 7 . 068

31. F lour a t £II per ton (net less bags) . . .. . . 463,625 11 0 0 1.985 287,303 11 0 0 1. 985

32. Total other costs .. .. . . . . .. 491,996 ll 13 5 2 .107 317,038 12 2 9 2.190

33. GRAND TOTAL (ALL COSTS ) .. .. .. .. 1,065,569 25 5 8 4 .562 619,667 23 14 6 4 . 28 1

59

AREAS OF THE MAINLAND STATES AND IN THE STATE OF TASMANIA.

bread as at 30th June, 1935, are displayed in Table 37 .

37 .

AREA IN EACH STATE (IN TASMANIA FOR THE WHOLE STATE) ; FLOUR at £11 PER T

Adelaide. Perth.

I

Brisbane.

28 26 30

8,592 6156 . 5 10, 109

Expend!· Cost per Cost per Expendi- Cost per Cost per E xpend i- Cost per

ture. ton. loaf. ture. ton. loaf. ture. ton.

£ £ 8 . d. d. £ .£ 8. d. d. £ £ 8. d.

25,140 2 18 6 .528 22,292 3 12 5 . 653 39,548 3 18 3

8,618 1 0 1 . 181 6,840 1 2 3 .200 9,908 0 19 7

3,158 0 7 4 .066 2, 126 0 611 .062 3, 635 0 7 2

939 0 2 2 .020 459 0 1 6 . 014 1,193 0 2 5

749 0 1 9 . 016 735 0 2 5 . 022 1,472 0 211

493 0 1 2 .010 422 0 1 4 .012 710 0 1 5

1,009 0 2 4 .021 705 0 2 3 . 021 1,640 0 3 3

80 0 0 3 .002 60 0 0 2 .002 183 0 0 4

40,186 4 13 7 .844 33,639 5 9 3 . 986 58,289 5 15 4

31,929 3 14 4 .670 28,908 4 13 11 .847 44,212 4 7 6

6,103 0 14 3 . 128 5,096 0 16 7 .149 7,453 0 14 9

3,140 0 7 4 .067 4,225 0 13 9 .124 9,344 0 18 6

108 0 0 3 .002 32 0 0 1 .001 28 0 0 1

462 0 1 1 . 010 332 0 1 1 .010 336 0 0 8

1,153 0 2 8 .024 1,728 0 5 7 . 051 2,487 0 4 11

159 0 0 4 .003 81 0 0 3 .002 239 0 0 5

43,054 5 0 3 . 904 40,402 6 11 3 1 . 184 64,099 6 6 10

7,289 0 17 0 . 154 4,457 0 14 6 .131 10,011 0 19 9

.. .. . . .. .. . . 665 0 1 4

870 0 2 0 .018 1,291 0 4 3 . 037 1,511 0 3 0

67 0 0 2 .001 18 0 0 1 .001 24 0 0 1

382 0 0 10 .008 963 0 3 1 . 028 1,332 0 2 8

24 0 0 1 .. 5 .. .. 67 0 0 2

183 0 0 5 .004 121 0 0 5 . 004 1,134 0 2 3

45 0 0 1 .001 9 . . .. 6 . .

332 0 0 9 .007 138 0 0 5 . 004 862 0 1 8

9,192 1 1 4 . 193 7,002 1 2 9 .205 15,612 1 10 11

92,432 10 15 2 1.941 81,043 13 3 3 2.375 138,000 13 13 1

4,098 0 9 6 . 086 4,201 0 13 8 .123 7,261 0 14 4

670 0 1 7 .014 978 0 3 2 .029 806 0 1 7

94-,512 11 0 0 1. 985 67 ,71 2 11 0 0 1. 985 111,199 11 0 0

- --

99,280 1 1111 1 2.085 72,891 11 16 10 2. 137 11 9,266 11 15 11

- - .

191,712 : 22 6 3 4.026 153,934 25 0 1 4 . 512 257,266 25 9 0

__ ___ __ \ __

Cos t per loaf.

d.

.698 . 17 5 . 004 . 021

.025 . 013 . 028 .003

1. 027

. 780 . 132 .165 . 000 .006 .044 . 004

1. 13 1

.177 .012 .026 . 001 .024 .001 . 020 ..

. 015

. 276

2 . 43 4

. 129 .015 1. 96 3

2 . 107

4.541

Tasmani a.

29

4,279 . 8

Expendi- Cost per l Cost per

ture. ton. loaf.

----

£ £ 8 . d. d.

15,13 5 3 10 9 .629

4,01 5 0 18 9 . 167

2,077 0 9 9 .086

410 0 1 11 .017

556 0 2 7 .023

247 0 1 2 . 010

504 0 2 4 .021

78 0 0 4 .003

23,022 5 7 7 . 956

12,871 3 0 2 .535

2,786 0 13 0 . 116

1,039 0 4 10 .043

71 0 0 4 . 003

55 0 0 3 . 002

640 0 3 0 .027

180 0 0 10 . 007

17,642 4 2 5 . 733

1,996 0 9 4 . 083

20 0 0 1 .001

679 0 3 2 . 029

33 0 0 2 .001

244 0 1 2 .010

23 0 0 1 . 001

511 0 2 5 .021

23 0 0 1 . 001

128 0 0 8 . 005

3,657 0 17 2 .152

44, 321 10 7 2 1. 841

3,606 0 16 10 . 149

356 0 1 8 .015

47,07 8 11 0 0 1 . 95 6

51,040 ll 18 6 2. 120

95,3 61 22 5 8 3 .961

60

204. For the purposes of ready comparison the following summary of the costs under the various sub-heads has been extracted from Table 37 :--TABLE :58.

COMPARISON OF COSTS IN PENCE PER 2 LB. SALEABLE LOAF.

- Sydney. Melbourne. Adelaide. Perth. Brisbane. Tasmania.

Number of Bakeries 0 0 73 49 28 26 30 29

d. d. d. d. d. d.

Production 0 0 0 0 0.943 0.875 0.844 0.986 1.027 0.956

Distribution .. . . 1.212 0.957 0.904 1.184 1.131 0.733

Administration .. • 0 0.300 0.259 0.193 0.205 0.276 0.152

Other Costs • 0 0. 2.107 2.190 2.085 2.137 2.107 2.120

Total .. . . 4.562 4.281 4.026 4.512 4.541 3.961

I

205. The variations disclosed as between one area and another illustrate the nature and extent to which the conditions existing in the different centres affect the operations of this industry. Fig. II. shows the same data in graphic form.

206. Reference to Table 37 shows that the rrwst important items making up the costs are flour and salaries and wages. The price of flour has already been considered in sub-section v. (b) (iii).

207. Table 39 shows the relation which the combined item of salaries and wages bears to other items in each cost subdivision :-TABLE 39.

Costs in pence per 2 lb. saleable loaf, 30th June, 1935.

-

Sydney. Melbourne. Adelaide. Perth. Brisbane. Tasmania.

Production-(a) Salaries and wages . . .. .508 .490 .528 .653 .698 .629

(b) Other production costs (except flour) .. . . . . .435 .385 .316 .333 .329 .327

.943 .875 .844 .986 1.027 .956

Distribution- I

( o) Salaries and wages .. . . .865 .736 .670 .847 .780 .535

(d) Other distribution costs .. .347 .221 .234 .337 .351 .198

1.212 .957 .904 1.184 1.131 .733

Administration-(e) Salaries and wages and directors' fees 0. . . • 0 .174 .184 .154 .131 .189 .084

(f) Other administration costs .. .126 ·.075 .039 .074 .087 .068

.300 .259 .193 .205 .276 .152

Total salaries and wages costs (Items (a) (c) and (e) 0 0 0 0 0 0 1,547 1.410 1.352 1.631 1.667 1.248

Other costs (Items (b) (d) and (f) 0 0 .908 .681 .589 .744 .767 .593

Total 0. 0 . 0 0 2.455 2.091 1.941 2.375 2.434 1.841

208. These figures show that with .the exception of flour, labour is the largest single item in a baker's costs ; further that in all cases except Tasmania, it costs more to deliver a loaf than it does to make and bake it.

209. The extent to which mechanization within the bakehouse affects the output per employee, and consequently the labour cost per loaf, is shown in Table 40.

61 - 62

FIG. I I. Sf-10\/\111\/G PER

L? LB LOAF" /IV THe ME"TK'O,POL/7/41\/ OrTJ-1£" !WA/NLA/\10 sz;=q-rc-S

/1\/ A/

/.935-:

II PRooucT/ON cosTs (EXCEPTING FLOoR) cosr oF FL.ovR II 0/STR/8<.///0N COSTS D OTH£"R COSTS

COSTS

P£NC£ PENC.C

PER P.t:R

ZLB.L.OAF 2L.8.LOAF

.90 r------------------------, $0

4·s 4·5

¢4 44

4 · 2 4·2

4·1 4·/

40 3·9 3·9

3·8 3·8

8·7 3 ·7

36

S·S 3·5

2·0

/·0 /·0

0

SYON£Y AOELA/0£ B.R/S.BANe

MELBOGRNE PERTH

NOTES:---. /. FLOUR /S HERE -,;;.qK£N ,.....qr £/!·0 · 0 PER

SHORT /ON e. Y7£LO OF L0,..4V£S PER TON or FLOUR IS .,.....qs -DISCVSSEO IN SE:CT/ON V, B. (//.)

63

TABLE 40.

SHOWING THE QUANTITY OF FLOUR HANDLED WEEKLY PER BAKEHOUSE OPERATIVE EMPLOYED IN THE BUSINESSES INVESTIGATED BY THE COMMISSION.

' Group. Sydney. Melbourne. Adelaide. Perth. Brisbane. Tasmania.

Tons Tons Tons Tons Tons Tons

Hand- per week. per week. per week. per week. per week. per week.

1-5 tons .. . . . . 1.019 1.019 0.990 1.037 0.987 0.861

Machine and Hand-1-5 tons .. . . . . 1.186 1.141 1.102 1.128 1.010 1.015

6-10 tons .. . . . . 1.321 1.391 1.199 1.421 1.158 1.212

11-15 tons .. . . .. 1.565 1.564 . . 1.497 1 .. 379 . .

Over 15 tons .. . . .. 1.553 1.653 1.405 . . 1.121 . .

Semi-automatic-11-15 tons .. . . . . 1.703 . . . . . . . . . .

Semi-automatic and automatic-Over 15 tons .. . . . . 2.080 1.714 . . . . . . . .

210. The weekly tonnage handled per operative increases steadily with the volume of the weekly output and with the degree of mechanization. In considering these figures it is necessary to remember that the extent to which machinery has been installed in the "Machine and Hand " sub-groups varies very considerably.

211. The items "Horse and stable expenditure" and "Motor expenses" under the sub-heading Distribution are complementary. The difference in costs between .139d. per 2-lb. loaf for motor in Sydney and . 036d. in Melbourne is due largely to the more

general use of motors for bread deliveries in the former city. By combining horse and stable expenses, motor expenses and depreciation of horse-drawn and motor vehicles , the grouped figures per saleable 2-lb. loaf are :-Sydney . 323d., l\1elbourne . 209d., Perth . 324d., Adelaide .219d., Brisbane .341d. and Tasmania .186d. These differences may be attributable to a

number of causes, prominent among which are the nature of the terrain over which delivery has to be effected and the hours of starting work. 212. Sundry Iiems.-Table 37 shows in detail a number and variety of other items of expense, namely, fuel, power and light, insurance, bank charges , printing, stationery, advertising

and discounts. In the main , these charges are relatively uniform in most of the metropolitan areas and do not call for special comment, being ordinary recurring items of cost essential to most types of business. 213. Other Costs.-The next items for consideration are those which are consequent upon

the capital invested in the business. The matter is somewhat complicated as some bakers own the land and buildings used for their bakery business, whilst others rent the whole or part thereof. Those in the former group pay local rates and taxes, whilst in the latter these charges are sometimes included in the rent. In the same way depreciation of buildings is borne directly

by those owning their properties, while in the case of lessees this item is really provided for in the In view of these complications, the Commission has grouped rent, rates and taxes (except income tax) and depreciation on buildings in the Cost Tables. · 214. Table 41 shows, in respect of those bakeries whose financial affairs were investigated

by the Commission :-(a) the number who use rented premises; (b) the number who own the premises in which their bakery op erations are conducted ; and (c) the number who own portion of the premises.

TABLE 41.

- Rented premises. Own premises. Partly-owned premises . Total.

Sydney . . . . .. 26 44 3 73

Melbourne . . .. .. 17 22 10 49

Adelaide . . .. . . 7 19 2 28

Perth . . . . .. 6 19 1 26

Brisbane . . . . .. 8 21 1 30

Tasmania . . . . .. 11 16 2 29

Total .. . . 75 141 19 235

215. As mentioned in paragraph 167 the item " Interest on borrowed money " represents solely the interest charges on money which was employed in the busin ess by way of mortgages, loans, advances and bank overdrafts. 216. So far the average costs in each metropolitan area have been discussed as a whole.

The next line of inquiry concerns the way in which costs vary in bakeries when they are grouped according to size and degree of mechanization. _ 217. The range of variation of costs of the individual bakers investigated by the Commission is shown in Table 42.

64

TABLE 42.

SHOWING THE RANGE OF INDIVIDUAL BAKERS' COSTS AS AT 30TH JUNE, 1935, IN RESPECT OF THE AVERAGE GROUP COSTS INCLUDED IN TABLE 37. . (Expressed in pence per 2-lb. saleable loaf.)

Group. Sydney. MelJ?ourne. Adelaide. Perth. Brisbane. Tasmania.

-

Hand-1-5 tons .. . . 0. 3.945 3.607 3.799 3.825 . . 3 .616

3.948 3.919 3 .861 4.035 4.288 3. 779

4.417 3 .946 3 .886 4.443 4.365 3.811

4.527 3.963 3.911 4.506 4.454 3.943

4.697 4.004 3.933 4.571 4. 746 3.980

4.944 4.010 4 .359 4.650 5.225 3.999

4.959 4.201 4. 604 4.890 5.367 4.166

5 .188 4.527 .. 5.197 . . 4. 190

. . 4.728 .. 5.548 . . 4.401

. . 4.837 .. . . . . 4.467

.. 5.259 . . . . . . 4.654

.. . . . . . . . . 4.722

. . .. . . . . . . 4.860

. . . . .. . . . . 5.660

Machine and Hand-1- 5 tons 0 . 4.302 3.815 3.634 3.840 3.887 3.201

4.335 4.285 4.022 4.185 4. 007 3.205

4.489 4.322 4.089 4.209 . 4.478 3 .386

4.548 4.596 4.202 4.402 4.520 3 .407

4.588 4.798 4.214 4.403 4.737 3 .528

4.593 4.869 4.243 4.548 4.922 3.678

4.599 4. 987 4.380 4.732 5.548 3.729

4.674 5.242 .. 4.760 . . 4 .354

4.791 .. 4.465 4.949 . . 4.437

4 .920 . . 4.479 .. . . 4.748

. . . . 4.533 . . . . ..

5 .048 . . 4.616 . . .. 4. 842

5.141 . . 4.727 .. . . ..

5.184 . . .. . . . . . .

5.974 . . . . . . . . ..

Machine and Hand-6-10 tons .. 3.788 3.772 3.213 4.139 3. 898 3 .017

. . . . . . 4.307 . . ..

3.940 4. 170 3.522 4.335 4.125 3.976

4.183 4.171 3.745 4.521 4.181 4.141

4.278 4.209 3.978 4.616 4.424 4.403

4.393 4.279 4.224 4.741 4.441 ..

4.396 4.292 4.227 4.745 4. 452 ..

4.402 4.335 .. 5. 262 4.503 . .

4.476 (2) 4.387 .. .. 4.650 . .

. . 4.425 .. . . 4.778 . .

4.488 4.429 .. . . 4.916 . .

4.521 4.494 .. . . 4.978 . .

4.531 4.564 . . . . 5.163 . .

4.558 4.595 .. .. 5.442 • 0

4.753 4.656 .. . . . . . .

4.850 5.037 .. . . . . . .

4.899 . . .. . . . . . .

4.933 . . .. . . . . . .

4 .938 . . .. . . . . . .

4.964 . . .. . . . . . .

4.975 . . .. . . . . . .

5.066· . . .. . . . . . .

5.102 . . .. . . . . . .

I

Machine and Hand-11-15 tons 4.350 4.142 .. * t . . . .

4.374 4.252 .. . . . . . .

4.377 4.365 .. . . .. . .

4.381 4.390 .. . . . . . .

4.497 4.909 .. . . .. . .

4.532 . . . . . . . . . .

4.729 . . . . . . .. . .

4.832 . . . . .. . . . .

4 .955 . . . . . . .. . .

218. The degree of uniformity in costs is somewhat remarkable in view of the fact that the survey includes on the on e hand some bakeries with a large percentage of wholesale trade and low delivery costs and on the other certain firms with a high proportion of more or less specialized business in better class suburbs.

65

TABLE 42--continued.

Group. Sydney. Melbourne. Adelaide. Perth. Brisbane. Taamanla.

Machine and Hand-Over 15 tons .. 4.452 3.657 3.727 . . 4 .071 ..

4.491 4.132 4.113 .. 4.589 ..

4 .517 4.304 4.243 .. 4.755 . .

4.569 4.481 . . . . . . l ..

4.603 4 . 636 . . . . i .. I . . 'f 4 . 656 . . . . . . i . . ! .. 4 . 706 I I .. . . . . . .

I

. .

4.940 .. . . . . . . . .

5.041 .. . . . . . . . .

Semi-Automatic-11-15 tons .. 4 .377 . . . . . . . . . .

4.438 . . . . . . . . . .

4.445 .. . . . . . . . .

4.818 . . . . . . . . ..

Semi-Automatic and Automatic- 3 . 945 3 .729 . . . . .. . .

Over 15 tons 4 . 287 3 .890 . . .. . . ..

4.556 4.185 . . . . .. . .

4 .,700 4.272 .. . . . . ..

4.733 4.623 . . . . . . ..

* Included in Machine and Hand-6-10 tons. t Included in Machine and Hand-Over 15 tons. N.B.-The total number of businesses represented in the above list is 232. The discrepancy between this and the total shown in other tables (235) is due to the fact that one large firm operating three units is here costed as a whole, and in one other case the disclosure of the figures might have been unfair to the proprietor concerned.

219. Table 43 shows the costs per 2 lb . loaf of 117 bakeries (in both Hand and Machine, and Hand groups) using from one to five tons of flour per week. In considering individual items of cost in this subdivision, it is necessary to emphasize that the number of bakeries included in some of the groups is not large and, consequently, minor differences between individual items of

cost are not of such importance as in larger subdivisions. 220. Differences between the labour costs of smaller bakeries in the capital cities, as revealed by an analysis of the figures, do not reflect the appropriate award wages rates as the adjustment of the amount of labour to the work to be perforn1ed is more difficult in the small business than in the larger. /

221. The machine and hand group when compared State by State with the hand group shows a lower production labour cost per loaf ; this follows from the partial 1nechanization of the first-mentioned type of bakery. 222. The cost of 1naterials other than flour does not afford a very useful basis of comparison,

because the practice followed by individual bakers in the n1ixing of the dough varies ,videly, some preferring to add quantities of ingredients such as dried milk and prepared improvers, while others use nothing but yeast and salt with perhaps a simple improver. 223 . Table 44 shows the same segregation of costs for the larger bakery businesses. The

Commission regrets that it is unable to publish the figures for some groups individually owing to the confidential nature of the information. 224. In order to facilitate comparisons within groups and between cities, Table 45 has been prepared. An examination of its component figures suggests that the following general principles

apply:-(a) Production costs (excluding flour) decrease as the size of the bakery increases ; the difference between Machine and Hand 1- 5 ton bakeries (Table 43) and 16 ton bakeries (Table 44) is approximately 0 .1d. per 2 lb. loaf. (b) Distribution costs are somewhat variable because some of the larger businesses

concentrate on wholesale trade as a matter of policy and, consequently, much less cost is involved in distribution. There are, however, exceptions (see (/) below) . (c) Costs of administration are higher in the larger businesses . This is explained

by two facts : .

(i) that there is little administrative charge in the smaller units where the baker often works in the bakehouse and also runs his office and keeps very few books ; ( ii) in the larger businesses high er costs for salaries and wages are incurred

in the administrative section owin g to the greater detail work, wider administrative supervision and responsibility involved.

TABLE

43.

TABLE

SHOWING

THE ANALYSIS

OF

THE

COST

PER

2-LB. SALEABLE

LOAF

OF

CERTAIN

OF

THE

BAKERIES INCLUDED

IN

TABLE

37 HANDLING

FROM

ONE ·TO

FIVE

TONES

OF

FLOUR

WEEKLY.

I

Hand-1

to

5 Tons. Machine

and

Hand-

1

to

5 Tons.

-

Sydney. Melbourn e .

I Adelaide .

I

Perth.

Brisbane .

Tas

m ania.

Sydn

e y.

M e lbourne.

I

Adelaide.

Perth.

Brisbane.

Tasmania.

c

I

Numb

e r of

bakeries

. . . . . . . . . . . . . . . .

8 11 7

9

7 14 14 8

I

12

9

7

11

Tonnage

flour

used

annually

. . . . . . . . . . . . . .

1,068

1,502.25

537 1,026

77 5

1,232.5

3,063

1,732.6

1,97 9 1,

575.5

1 ,233

1,599.3

A.

PRODUCTION

(except

flour).

d.

d.

d.

d. d. d.

I

d.

d. d. d. d. d.

l.

Salaries

and

wages . . . . . . . . . . . . . . .

660

. 740 . 759 . 692 . 7

57

. 695

I

. 656 .

652 . 635 .

702

. 719 . 626

2. Mater

i a l s

(other

than

flour)

..

. .

.. .. .. ..

. 244 .177 .

206

.161

.176

.146 .153

.166

j

. 246

.152

. 13 5 . 205

3.

Fuel

.. ..

..

.. .. .. .. .. ..

.094 .094

. 086

.074

.072

. 105

I

.10 8

.077

.079

.064

.081

. 0 92

4. Power

and

li g ht

. . . . . . . . . . . . . . . . .

015

. 015

. 015

. 012

. 029

. 023 .

011

. 022

. 020

. Oll

. 027

. 017

5 . Repairs

and

maintenance

of

plant

and

machinery

. . . . . . . . .

037

. 012

. 021 .

019

. 009

. 027

1 •

028

1

. 016

. 024

. 017

. 012

. 03-1

6 . Insur

a n ce . . . . . . . . . . . . . . . . .

009

. 007

. 005

. 016

. 010

. 005

I

. 010

I

.

015

. 013

. OlO

. 010

. 009

7. Depreciation

. . . . . . . . . . . . . . . .

.018

.008 .012 .013 .013 .012

.024

. 024 . 025

.015 .025

.0 26

8. Other

production

costs . . . . . . . . . . . . . . . .

.002

. .

.006

.014

. 006

.004

.003

.00 2

. .

I

.001

9.TOT

A LPROD U

CTIONCosTs(exceptflour)

..

.. .. ..

..

1.077

1.055

1. 104

1

.993

!

1.080

1.023

.996

1

.9 76

I

1.045

.973

1.009

1.010

. B.

DISTRIBUTION.

..,

.

I

I _

r

I

10 .

Salanesandwages

. .

.. ..

..

.. .. ..

.81 5 .801

.55 1

.874

I

.6 93

1

.b57 . 861

I

.93U.

1

.726

.818

.749

.480

11.

Hors

e

expenses

..

.. .. ..

.. ..

..

..

. 134

.133

.102

.125

.120

I

.115

.170

.182

I

.136

. 200

. 084

.117

12.

Motor

ex pens

e s . . . . . . . . . . . . . . . .

.114

.027 .067

.190

.113

.079

.110

.042

.038

.096

.229

.018

13.

Power

and

light

. . . . . . . . . . . . . . . .

.003

.002 .002

.001

1

. .

.008

.002

.001

.003

. . . . . .

g;

14.

Insurance

(other

than

horses

and

motors)

. . . . . . . . . .

.007 .003

.004

.007

.00 3

.003 .012

.009

.012

.0 11

.004

.001

15.

Depreciat

ion

on vehicles . . . . . . . . . . . . . .

.046

.024

.039

.080

.026

.043 .044 .036

.024

.052

.066

.023

1 6.

Other

distribution

costs . . . . . . . .

· · · · · ·

. .

.001 . 002 .007

.004

.003

.003

.005

.004

,

.

.003

. 010

17.

TOTAL

DISTRIBUTION

COSTS

..

.. .. ..

..

..

l.

179

· 991 . 767

l.

284 . 959 . 808

l.

202

l.

205

. 943

1.177

1.135

. 649

C. ADMINISTRATION.

1 8 .

Salaries

and

wages

.. .. ..

..

.. .. ..

.059

.079

.094

.036 .067

.050

.146

.

.109

.144

.084

.109

.030

19 .

Dire

ct ors'

fees

..

· ·

..

..

..

.. .. ..

..

..

.. ..

..

..

. .

. 001

..

..

. .

.003

20 .

Printing,stationery,telephonecharges,travellingexpensesandlegalexpenses

..

.040

.032

.017

.040

.025 .033

.040

.026

.027

.054

.032

.025

21.

Power

and

light

.. .. .. .. ..

.. ..

. .

.002

.004

.001

. .

..

.002

.002 .003

.001

..

..

..

22.

Discounts,

advertising,

subscriptions

to

Trade

Protection

Associations,

audit

and

accountancy

fees . . . . . . . . . . . . . .

.014

.007

.002 .035

.013

.007

.022 .017

.009

.025

.020

.Oil

23.

Bank

charges . . . . . . . . . . . . . . . .

.002 .002

.001

. .

.002

.002

.003

. .

.002

. .

.002

..

24.

Bad

debts

written

off . . . . . . . . . . . . . .

.037 .009

. .

.016

.Oil

.039

.076

.024

.006

. .

.020

.Oil

25.

D e preciation

on office

furniture

and

fittings

. . . . . . . . . .

.002

. . . . . . . . . .

.001

.004

.002

. . . .

.002

26.

Other

administration

costs . . . . . . . . . . . .

.024

.005

.001

.004 .010

. .

.028

.021

.005

•

.001

. .

.006

27.

ToTAL

Am.nNISTRATION

CosTs

. . . .

. . . . . . . .

.180

.138 .116

.131

.128

.133

. 318 .

205

.196 .164 .183

. 088

28.

TOTAL

PRODUCTION,

DISTRIBUTION

AND

ADMINISTRATION

COSTS

(as

above)

. .

2.436

2.184

1.987

2.408

2.167

1.964

2.516 2.386 2.184 2.314 2.327

1.747

OTHER

CosTs.

29.

Rents,

rates

and

taxes

paid

(except

Income

Taxes)

and

depreciation

on buildings..

.166 .198 .149

.165

.143

.279

.173

.147

.114

.094

.147

.105

30.

Interest

paid

on borrowed

money

. . . . . . . . . . . .

.042 .037

.003 .036

. .

.028 .058

.084

.007

.020 .029

.014

31.

Flour

at

£11

(net)

per

ton

. . . . . . . . . . . . . .

1.

985

l.

985

1.

985

1.

985

1.

963

1.

956

1.

985

1.

985

1.

985

1.

985

1.

963

1.

956

32.

ToTAL

OTHER

CosTs

.. .. ..

..

.. .. ..

2.193

2.220

2.137

2.186

2.106

2.263 2.216

2.216

2.106

2.099

2.139

2.075

33.

GRAND

TOTAL

(ALL

COSTS)

. . . . . . . . . .

• •

4.629

4.404

4.124 4.594

4.273

4.227

4.

732

4.602

4.290 4.413

4.466

3.822

I

j -

TABLE

SHOVVING

THE

ANALYSIS OF

THE

COSTS

PER

2-LB.

SALEABLE

LOAF

OF

CERTAIN

OF

THE

BAKERIES

INCLUDED

IN

TABLE

37.

HANDLING

OVER

FIVE

TONS OF FLOUR

WEEKLY

.

I

Machin e

and

Hand.

I

M a ch i n e a n d

Ha nd.

Semi-

A utomat.ic.

6-10

To n s

11 - 1 5

To n s

Group

and

Tonnage .

6

to

10 Tons.

11· : 15

Tons.

16 Ton s

and

ove r .

and

11-1

5

and

16 Tons

11-15

T o ns .

16 Tons

and

over.

T o n

s.

and

O v er.

Sydney. Melbourn e . Adelaide. Bri s bane. Tasmani a . Sydn e y. \

M e lbomne.

Sydn

e y. Melbourne. Adel a ide.

P ert

h.

B ri sb an e .

Sydn

e y. Syd n ey

I

-----

i I

Nu m b e r

of

b a . ke

ri es c o s

ted

..

..

. .

22

1 5 6

13

4

91

5

ll

5

3

8

3

4

5 5

To n n

age

o f fl

o ur

u s e d

annu

a lly

..

..

. .

9,148 5,588 2,238 4,836 1,448 515.1 2,992. 5 14,879 4,883 3,

83 8

3,5 5 51

3,26 5 2,801.

73

6,037 9,420

,

----

-----

----

A: P

RO D

UC TJON

(ex c ept

flour).

d. d.

d.

d.

d.

d .

d. d. d.

d.

d.

d .

d.

d .

d.

l.

S a l a ri e s a n d

wage

s

..

..

. .

. .

.587 .532 .446 . 7 4 2 .575 .553

.480

.469 .406 .488

.621

I

. 610 .469 .363

.444

2. M a t

er i a l s

(o ther

th a n flour)

.. . .

. .

.163 .188 .189 .173 .

142

.201

.162 .193 .

233

.1 39

. 234 .193 .230 .211

.250

3. Fu

el

. . .. . .

. .

..

. 099 .081

.0 58

.06 2

.0 64

.104 •

.067

.105 .067 .062

.oss

I

.061 .091

.117

.084

4 .

Po w

er

a n d li g

ht

.. . .

..

..

.018 .014 .016 .021

. 013 . 020 .014 .020 .024 .022 . 015

.017

. 009

.021

.Oll

5. Rep

a i rs

, & c ., t o b a k e

house

plant

.. ..

.052

.034 .016 .024 . 008 .0

60

.033

.074 .052

.Oll

.0 2 4

I

.038

.044 . 065

.028

6. In

sur a n c e

..

..

. .

..

..

.012 .007 .010 .014

.016

.015 .008

.015

.009

I

.010

. 012

.O ll

.01 4

.017

.009

7. D ep r ec i a t i

on on

p l a nt,

m a chinery,

&c. . .

..

.0 29

.026 .0 24

.021

.023

.035

.012

.0 5 4

.023 . 019 .02 5

.0 4 6

.043

.066

.0 54

8. O t h e r

pr od

u c t io n

cost

s

..

.. ..

.0 05

.001

I

. 004 .00 2

. .

.002

. .

.001 .002

..

.0 0 1 .004

..

.010 .003

- - - -

- - -

9 . PRO

D UC

T I O N C osTS

( excep

t flour)

.965

.883 .763

1.059

. 8 41

. 990

.776 .931 . 816

I

.7 5 1

.9 90

.98 0 .900 . 870

. 88 3

..

..

--

---

---

-·---

- -

B .

D I S

TRI

BUT

ION.

10.

S a l ar

i e s a n d

wa g e s

..

..

..

. .

.823

.819 .528 .7

67

.576 .852 .879

.992

.685 .7 4 2 .

85 3 .

773

.674 .623

1 1 .

Hor

se ex

p e n ses

..

. .

. .

..

.177 .150 .099

.14 1 .116

.llO

.164

.155 .172 .1 4 4

. 1 3 4

.138 .126

.0 85

.ll2

1 2 .

1\i o to

r

expe

n ses

..

. .

..

. .

. 089

.0 29

. 050 .

19 8 .040

.llO

. 044

.165

.024

.08 9

. 117

.105

. 088 .215

. 045

1 3.

P owe r

a nd

l i g ht

. . . .

. .

..

.00 1 .00 4 .

001

.. ..

.001 .

002

..

.003

.0 0 3 . 0

01

..

. . .

.

.001

1 4.

I n sur

a . nce

( e xcept

on ho r s e s a

nd mot

or s)

..

. 012

.007

. 00 6 .006 .002

.01 2

.0 06

. 013 .005 .0 1 2 .01 0 .008 . 013 .012 .010

1 5.

D ep r e c i

at i o n o n

veh

i c l e s

. . .

.

..

. 034

.027

. 027

.05 4 .

018

.032

. 026 .053 .029

.0 21

. 0 4-2

. 025 .024 .03 6

.030

1 6 .

Othe

r

d i s t

ribu

t i o n c o

st s

..

. . ..

. .

.002

.009 . 004 .009 .

001

.001 .025

..

. .

.002 . 005

. 015

.0 07

.00 6

----

- -

--

----

- - -

--

----

--

--

----

-

1 7.

T o T

AL

D I S'l'RIBUT

I ON

Cos T s

.. . .

. .

1.136

1.038

. 720

1 . 170

.7 61

1.118 1.122

1. 4 03

.91

8

l.O ll

1.15

9 1.114 1 . 039 1 . 029

.8 2 7

- -

---

----

----

----

C . ADMI

N I S TR

A T I

ON .

1 8.

Sn. l a

ri e s

a nd

w ag

es

. .

. .

..

..

. 1 9 7 .175

.190

.18 5

.16 9

.199

.227

. 113

-208 .14 5

.1 7 8

.217 .2

51

. 2 10 .190

1 9 .

Dire

c to r s ' f e e s

..

..

. .

..

. .

. . .

.

.. . .

.OlO

. 0 0 7

. .

. .

. .

. 0 3 6

.0 13

. 007 .003

20.

Pr int

i ng ,

St a t io n e r y , &c.

.. . .

..

. 0 2 5

.0 21

.021

.0 25

.0 28 .029 .017 . 0 3

·1:

. 020

.OJ . 2

. 030 .029 .044

.0 58

.023

2

1. P o w e r

a nd

li g ht

. . . .

..

. .

.00 2

. .

.001

. .

.00 2 . 0

02

.. ..

. .

. 002 .00 1

. .

..

. .

. .

22.

D i sco u n t s ,

Adve

rt i s ing ,

&c .

. . . .

..

. 0 28

.010 .003

.0 2 1 .

01 2

.020 . 010 .01 5 . 016

. O il

.0 27

.030 . 043 .049 .

021

23 .

B a n k

c h a r ges

.

. . . .

.

..

.001

..

. .

.002

. .

..

..

. .

.. . . ..

. .

. .

.001

. .

24.

Ba . d

cl o b

ts

w r itt

e n off

. .

..

..

. 034

.037

.0 10

.021 .018

.0 44 . 036 .03 2

.0 25

..

. 0 02

. 0 2 0 . 003

.0 2 6

.017

2G .

D eprec i

at ion

- office f

urnit

ur e

an d

fitt ing s

..

..

.00 2 .001

. . ..

. 001

.001

..

. 0 01

. 0 0 1 .001

..

.00 3 .001 . 0

02

26 .

Oth

e r ad

mi n i s

tr a t i o n c o

st s

..

. .

..

.02 4

.00 9 .0 0 3 .

012

.00 8

.0 28

.01 2 .0

28

.01 2

.Oll

. 006

. 027

.0 18

. 024 .006

2 7 .

T O TAL

A D M I N I

ST R A

TION

CO S TS

..

..

.3ll

. 254 .2 2 9

. 26 6

.23 7 . 323 . 3 1 3 .2 4 9 . 28 2 .1 82 . 245

.3 5 9 .375 .376 .262

- - -

- -

--

-

28 .

T O TA

L

PROD

U C TI

O N ,

DI S TRIBU

TI O N

AN D

AD J\

II N IS

'rR.A

T I ON

Co s

Ts

( a s

ab o

ve ) . .

..

2.41 2 2.175

l.

71 2

2. 49

5 1 . 8

39

2 , 431

2.211

2 . 5 8 3 2 .

01 6

1 . 944 2 . 3 9 4

2.453 ' 2.314

2.27

5 1.972

O niE

R C

os T s .

29 .

Rent

s , r a t e s a . n d

ta xe s p a id ( exce

pt

in c ome

ta x es)

a

nd d e

pr ec i a

tion

o n buil

di n g s

. .

..

.1 31

.139

.0 66

.1 2 2

.091

.128 .133 .1 5 6 .11 2

.074

. 124 .127 .171 .139 .1 3 8

3 0.

I nte

r est

pa i d

on b o r rowe d m o

ney

..

..

.0 32 .086 .007

.Oll

.009 . 015

.067

.049 .109 . 0

25

.0 3 0

.017

.042 .068 . 0 4 1

31.

F l o

ur

a t

£ 11

( n e t ) pe r t o n

..

. .

. .

1.9 8 5 1.985 1.985

1.9 6 3 1 .

95 6 1 . 985 1 . 9 8 5 1 . 9

85

1 . 98

5 1 . 9

85

1. 985 1 .

963

1 . 985

1.98

5

1. 9 8 5

3 2 .

T O T A L

OTH

ER

COSTS

.. ..

. .

2.148

2.210

2 . 058

2.0 9 6

I

2 . 056 2 . 128 2 .

185

2 . 190

2 . 206 2 . 0 8 4 2 .

139

2.107 2.198 2 .

19 2 2.164

3 3 .

GR AN

D T O T

AL

(ALL

OOSTS)

..

..

..

4.560

I

4 . 385

3.770

4.591

I

3.895

4.559 4 396 4 .

773

4 . 222

I

4.028

I

4 . 533

4 . 5 6 0

4.512 4.467 4.136

.....:}

68

TABLE 45.

SUMMARIZING RESULTS OF MAI N ANALYSES OF COSTS PER 2-LB. LOAF OF BAKERIES WHEN SEGRE GATE D ACCORDING TO CLASSES WITHIN THE AREAS.

Group and Tonnage . Sydney. Melbourne. .Adelaide. Perth. Brisbane. Tasmania.

A. P R ODUCTION (except fl our). Hand-1-5 t ons . . . . . . 1.077 1.055 1.104 .993 1.080 1.023

Machine and Hand-1-5 tons . . . . . . .996 .976 1.045 .973 1.009 1.010

6-10 tons . . . . .. .965 .883 .7 63 l. .990 1.059 .84J 11- 15 tons . . . . . . .990 .776 .. f } .980 16 tons and over . . .931 .816 .751 .. . . . . . . Semi-automatic- 11-15 t ons . . . . . . .900 . . . . . . . . . . 16 tons and over . . . . .870 .883 . . .. .. . . B. DISTRIBUTION. Hand- 1-5 tons .. . . . . 1.179 .991 . 767 1. 284 .959 .808 Machine and Hand- 1- 5 tons . . .. . . 1.202 1.205 . 943 1.177 1.135 .649 6-10 t ons . . . . .. 1.136 1.038 .720 } 1.159 L. 1.170 .761 11-15 tons . . . . . . l.ll8 1.122 .. 1.114 16 tons and over 1. 403 .918 1.011 f .. . . . . . . Semi-automatic-11-15 tons . . . . . . 1. 039 . . . . . . .. . . 16 tons and over . . . . 1.029 .827 . . .. .. . . C . A DMINISTRATION. Hand- 1-5 t ons . . . . . . .180 .138 .116 .131 .128 .133 Ma chine and Hand- 1-5 tons . . .. . . .318 .205 .196 .164 .183 .088 6-10 tons . . . . . . .311 .254 .229 } .245 .266 .237 11-15 t ons . . . . . . .323 .313 .. } .359 16 tons and over .249 .282 .182 .. . . . . . . Semi-automatic- 11-15 tons . . . . . . :375 .. . . . . .. . . 16 tons and over . . . . . 376 .262 . . . . .. . . D . OTHER CosTs-Hand- 1- 5 t ons . . . . .. 2. 193 2.220 2.137 2.186 2.106 2.263 Machine and Hand- 1-5 tons . . . . . . 2.216 - 2.21 6 2.106 2.099 2.139 2.075 6-1 0 tons . . . . . . 2. 148 2.210 2.058 } 2.139 2.096 2.056 11- 15 tons . . . . . . 2.128 2 .185 .. } 2. 107 16 tons and over 2.190 2.206 2.084 .. . . . . . . Semi-automatic-11- 15 tons . . - . . . . 2. 198 .. . . . . .. . . 16 tons and over . . . . 2.192 2.164 . . . . .. . . E. G RAND T oTAL (A ll costs). Hand- 1- 5 tons . . . . .. 4.629 4.404 4.124 4.594 4.273 4.227 Machine and Hand- 1- 5 t ons . . . . . . 4.732 4. 602 4. 290 4.413 4.466 3.822 6- 10 t ons . . . . . . 4.560 4.385 3.770 L. 4.533 4.591 3.895 11- 15 tons . . . . .. 4.559 4.396 .. f } 4.560 16 tons and over . . 4.773 4.222 4.028 . . . . . . . . Semi-automatic-11-1 5 t ons . . . . . . 4.51 2 . . .. . . .. . . 16 tons and over . . . . . . 4.467 4.136 . . . . . . . . 225. The following more detailed comparisons also emerge :-(d) Generally speaking, costs of a 2-lb. loaf in t he group of bakeries which are operated solely by hand and havea weekly output of 1 to 5 tons are less than the costs in similar sized bakeries which are operated by hand and some machinery. This feature is noticeable in all areas except Perth and Tasmania. In this section of t he· t rade some of the smaller bakeries employ little or no labour outside the baker and his family and in a number of cases the conditions under which manufacture is carried out leave much to be desired. (e) The costs in Sydney in each group of bakeries are usually higher than in the similar group in the other metropolitan areas.

69

(f) In Sydney the highest total costs are shown in the machine and hand-operated group using over 15 tons per week, namely 4. 773d. per 2-lb. loaf, but this is explained by the high distribution costs of this group caused by the policy of its members in covering a large area to obtain customers in order to dispose

of their large output. (g) In Melbourne the lowest costs are shown in the semi-automatic bakeries having an output in excess of 15 tons. The highest costs are displayed for those bakeries with an output of I to 5 tons wee kly, operated by hand with some

machinery.

(h) The Adelaide costs are relatively lower than those of Sydney, Melbourne and Perth and generally bear the most favorable comparison of any costs displayed in this table. (i) The Perth costs are high compared with those of Ad.elaide and Tasmania in each

group of bakeries, but usually lower than those of the other capital cities. 226. In the Report of the R.oyal Commission of Inquiry into Bread Prices in the State of New South Wales (metropolitan area-62 bakeries) the average total cost per saleable 2-lb. loaf is shown to be 4. 47ld. Table 46 compares the results of the two investigations.

Number of bakeries . . . .

Tonnage flour used . . . .

Number 2 lb. saleable loaves made

PRODUCTION.

1. Salaries and wages . . . .

2. Materials (other than flour) ..

3. Fuel . . . . . . . .

4. Power and light . . . . . .

5. Repairs and maintenance bakery plant 6. Insurance : . . . . .

7. Depreciation-bakery plant . .

8. Other production costs . .

. .

9. Total Production Costs (ex flour)

DISTRIBUTION.

10. Salaries and wages ..

11. Horse and stable expenditure 12. Motor expenses . . . .

13. Power and Light . . . .

14. Insurance . . . .

15. Depreciation . . . .

16. Other distribution costs ..

17. Total distribution costs

ADMINISTRATION.

18. Salaries and wages . . . .

19. Directors' fees . . . . . .

Printing; Stationery; 'Phone ; Travel

·21. Power and light . . . . . .

22. Discounts; Advert; Trade Subs; Audit 23. Bank charges . . . . . .

24. Bad debts written off . . . .

25. Depreciation-Office furniture .. 26. Other administration costs . . . .