PRICES COMPARED

Ashburton Guardian, Volume 57, Issue 245, 28 July 1937, Page 8

PRICES COMPARED

INSULATORS FOR POWER BOARD DOMINION AND BRITISH. (Per Press Association.) •> AUCKLAND, July 26. The impossibility of granting''preference to a New Zealand manufactured article when the difference in price between it and the lowest imported article was as much as £455 was emphasised at a meeting of the Auckland Electric Power Board when tenders were considered for the supply of insulators and supplementary iron work. Members, however, expressed regret that such preference could not he given, and it was decided to bring the matter before the attention of the Department of Indusries and Commerce, the differences in labour costs being blamed for the difference in prices. It was reported by the general manager (Mr R. IL. Bartley) that five firms had tendered for the supply of the required material. The price of the only New Zealand firm was £1579 10s Sd, as against prices of £1124 9s 9d, £ll3O 5s lOd, £1166 13s Id, and £1282 4s 6d, submitted by four English firms. Mr Bartley recommended that the Board accept the lowest tender, unless it should consider that the New Zealandmade insulator should receive preference. It seemed to him, however, that there was too large a difference in price to allow preference being given to the New Zealand firm.

The Difference Too Great. The acting-chairman (Mr S. J. Harbutt) said he thought the difference was too great for the Board to bridge. If it had been only 15 per cent., instead of as much as one-third, the Board might have accepted the New Zealand tender. If the Board could not do this, however, acceptance of the lowest tender would still mean that British goods were being used. Mr Bartley said be bad been told by tlie New Zealand firm that increases in labour costs were making it impossible for it to compete on even terms with English firms. New Zealand quotations bad always been slightly . higher than those for imported insulators, and the Board had once followed the policy of giving preference to the New Zealand article until costs went up. Now it used imported insulators. There had never been such a difference in prices before. It was decided to adopt Mr Bartley’s recommendation, and to send a copy of the report showing the position to the Department of Industries and Commerce for examination.