LOCAL INDUSTRY

Bay of Plenty Beacon, Volume 4, Issue 186, 28 November 1941, Page 5

LOCAL INDUSTRY

APPEAL OF CARTAGE CONTRACTORS DEPUTATION TO COUNTY COUNCIL. A deputation of local carriers waited on the County Council at its meeting on Tuesday with an appeal that when contracts were let preference be given local tenderers. Mr H. O. Caraway, secretary of the Carriers' Association, introduced the business of the deputation stating that it was understood that a number of metal carting contracts were as yet unlet. He added that it was also understood that a carrier of Rotorua was competing and unfcjwdercutting prices. This carrier had which permitted him to come into the district, while local carriers were confined to the Whakatane area. It was felt by local firms that it was unfair competition particularlj r when work was scarce. The Rotorua Association was also opposed to the latitude allowed by the licence this particular carrier possessed, which permitted him to operate anywhere in the No. 1 Li" censing district south of Manurewa. Given Good Service Continuing Mr Garaway said that it was fully realised that the council should do its best for the ratepayers and had the right to accept the lowest lender, but he asked that particularly as work was scarce at present, local men be given preference. He pointed out that most local carriers were ratepayers and paid heavy traffic fees to the council while an outside firm did not. " That the local men had stood by the council when farmers' roads required metalling and had done good work was contended by Mir Semmcns, who added that the council had always received good service. He appealed that local men only wished "a fair go" and preference given only when prices were very close. If there were large differences then they could not complain if the council passed them by. T'O' Cr C. T. Smith the deputation •explained that only one tender had been put in by a local man, as most •carriers were "one truck men" and were absorbed into the contract. Competition Necessary Cr W. A. McCracken pointed out that if outside firms were ignored fthen there would be no competition. This was indicated by the fact that one Whakatane tender had been : received. He agreed that in the past prices had been very fair, but repeated that the council must guard • against lack of competition, and •only one tender being placed by the Carriers' Association. In reply Mr Garaway claimed that icach man tendered alone and the Association did not act. To Mr H. C. McCready, Mr Sem,mens replied that the outside carrier even with greater expense could probably tender a lesser price with -a view to getting a footing in the district. Elimination of Competition The chairman, Mr J. L. Burnett, asked if it was correct that at the recent Licensing Authority meeting the Association had suggested that competition be eliminated from individual cartage and that all tenders be made through the Association. Mr Garaw r ay replied that that had been the object of the Association for a long time, but as yet was not in force. "It seems to be borne out by the fact that only one local tender has vbeen received." remarked the chairman . "There can't be a great shortage of work when only one tender is received," said Cr McCready. "Work by local carriers has been very satisfactory but we cannot stop competition," said the chairman, "and if one tender is lower then we generally approve it. There is only one way to keep out competition from other centres and you know what that is. You may rest assured that you will get a fair deal." he added. Keep Local Men Going With the departure of the deputation tenders for metalling were considered Cr MicGougan leading by giving his opinion that the local men should be supported. They had done good work and given good service. and by being on the job. kept prices down. He stated that an outside man in a big way might come in and cut prices just to keep his - staff and plant occupied. Support was forthcoming from Cr

F. J. Burt, who contended that it other carriers were given the contracts local men would be forced out of business and outsiders could then dictate rates. Local men had always given good service and it would be unfair to pass them by for a small saving. "Transport is going to be one of our big difficulties," said Cr McCready, "and once competition is eliminated we're' gone." He stated that about £1500 was paid by the council last year for metal carting. "I venture to say there was the price of a truck in that for the council." A voice: "Some truck!" Cr McCready continued that the transport monopoly must be stopped —-the State almost had it now. He quoted the instance when the Carriers' Association could not, according to them, make a living at carrying bobby calves yet a local man had done the job at the same price and made a good profit. As a result he had been threatened by the Association. Cr McCready concluded by saying he would agree to local men getting preference if the competition was fair. Cr Burt: "Yes, only if its fair." Cr Smith supported Cr McGougan's views while Cr Cawte observed that it was evident that competition was a good thing. The chairman said that the Works Committees findings in giving the Rotorua tenderer the Ruddick's Road contract and the local man the carting from Pckatahi was fair and reasonable. He added that if competition was fair then preference would be given lccal men.