OUR WAR SUPPLIES

Dominion, Volume 11, Issue 271, 5 August 1918, Page 6

OUR WAR SUPPLIES

GOOD METHODS OF PURCHASE

PRAISE FROM THE DEFENCE

COMMISSION

Nothing but admiration is expressed by the Del'enco Expenditure Commission! for the methods of purchase of supplies now ufced by the New Zealand Defence | Department. Following is what the Commission has'to say on the subject:— "At the outbreak of war supplies of clothing and equipment were obtained by various branches of the Quartermas-ter-General's Department, usually acting quito independently and sometimes, purchnsirig in opposition. It provoked pub-' lie criticism. If there was any dishon/osty it was of negligible quantity, but the svslem lacked experience, and was admit'tedlv costly and inefficient. -This did not tend to prompt fulfilment of sudden demands. Urgent purchases of unforeseen requirements were made by different authorities, sometimes at varying prices for the same article, which the Government Auditor would not sanction without special Ministerial authority. This caused delay in paying accounts, rendering the Defenco Department unpopular amongst suppliers, causing rise in prices. Under these conditions .the Army Storekeeper was hnrried and overworked, and his office records, etc., naturally drifted into arrears. "In short, such a method in peace time might have sufficed, but under war conditions it utterly failed. Increasing numbers of Reinforcements demanded a more elastic, and modern system; and also it was suddenly found that supplies were short. "In August, 1915, the obtaining of these Army supplies—aftorwards including also food and fodder for the Army Service Corpse-was handed over to the Supplies Board of Advice, acting under the Minister of Munitions. This board has no responsibility for : sufficient quantities of clothing and equipment being obtained- for advance requirements; that responsibility devolves on military officers concerned. The Supplies Board of Advice consists of three successful business men to act as advisers to the Government in procuringj military stores, equipment, sunplies.; and provisions—Messrs. A. H. Miles, Alexander Macintosh, and George Wilson—who consented to act on tho stipulation that they should receive no fees or. remuneration. They have systematized- and controlled on purejy commercial, lines the varied businesses conducted.'. The Minister appointed a Public Service officer to act as executive officer to this board, as the Minister's own representative on it. so that the Minister could be kept fully informed and exercise control. The board calls lor tenders, or not, as may be considered advisable. 'JBy October, 1915, a good system was in operation, the assistance having been enlisted .of Mr. Sidney Kirkcaldie and Mr, J. L. Morrison, who also' give their expert services 'free. The services of an expert officer of the Customs Department were also made available to tho board, he receiving no pay additional to his ordinary remuneration. "The board arranged for supplies nhend. For instance, it mado satisfactory arrangements with the woollen mill? for 1916 for purchases nmounting. to .£554,295. Competent inspectors wero appointed to inspect during process of manufacture as well as the finished article, and defaulting contractors were prosecuted and fined; but happily, instances were rnro and inconsiderable. The board acts in. close consultation with tho Audit Office, supplying in advance copies of all orders, conditions of supply, and terms of payment. Payment is mado within thirty days of delivery, and all trade discounts are thus secured. "An instance of the methods they em-< ploy was securing forage early in 1917 when a full cargo of oats was suddenly required for Eaypt;' 140,000 sacks were purchased quietly, through brokers who did- not even' know who their principals were, at '2s. 7d. to 2s. Bd. Der bushel. When it leaked the Defence.Department needed oats, the price at once went to !)s.-7d. Fortunately, the Department had then secured nil it. needed at the lower nrico; but it is fair to assume that the Government would have had to pay the higher price for the main portion, if not the whole quantity,- had a man in uniform made the necessary inquiries or gone out to purchase. " Tho system gradually evolved until now the Minister of.Defence leaves all purchasing for his Department in the hands of the Minister of Munitions and Supplies, with the exception of necessities for tho Transport Board; but by a new arrangement now coming into force with tho Imperial Government this board will not need to operate. v "Supplies are arranged for both' in New Zealand and in the actual countries of supply. This method can only be safely carried out if information is not divulged from within the Department, aiM happily no caso is known of leakage of information. Lists of merchants and manufacturers willing to supply are kept up to date at Wellington, so that advertising is now cut down to a minimum, and a considerable sum is thereby saved. Purchases by this Board of Munitions and Supplies on behalf of the Defence' Department totalled to December 31, 1917, over and requirements for 1918' are now in hand 'amounting to .81,300,000. At present tho name' of the successful tenderer is published only if he consents. It would seem almost wiser, to encourage competition, that' iu all cases names of successful tenderers, with prices and conditions of supply, should be published. There is no case 'known of fraud, embezzlement, or collusion In connection with this large amount of money paid in supplies. The question is now under consideration of having a business man representative of this Supplies Board acting with each of the four' District Headquarters of the Defence Department. This link seems most desirable, and would complete the chain; but suitable -business men do not seem to bo available'at all centres. "The executive officer of tho Munitions and Supplies Board is a Public Service officer, formerly without any experience of this kind, and who has therefore learnt much, and he is spoken of by his board in terms, of high regard. ' But an interesting incident occurred in his examination showins the tendency of public officers to overlook or take for granted certain items in "costing." He'quoted an instance of purchase of drugs abroad for &S2OO, which would have cost .£10,200 if purchased in Wellington, indicntin." a saving of ~£2OOO to New Zealand after allowing—according to him—all itenis of cost. Examined closely on items ot freight, insurance, war risk,' and other charges borne by merchants, he wisely decided to closely re-examine the matter, and subsequently- amended his evidence, showing that ho had omitted items (probably of freight and war risk), not usualiy taken into account by the Government on ships chartered by it. His profit of ,£2OOO wns thus reduced to i9Co—a big difference, although it thoroughly justified the' direct purchase from country ot manufacture. It corrected tho suspicion that otherwise would have been in our mind that merchants were m,i,king unduly largo profits. (in this transaction, anyhow) at the pubic expense." SANDER AND,SONS EUCALYPTI EXTRACT. Messr?. Sander and Sons—Wc (self and family) have used your "Eucalypti Extract" for the past 42 years, and I cannot remember being without it in the home. My first experience with it was in 1876, when I received a message to hurry homo ns my wife was crazy with neuralgia in the face and head. I asked my chemist to give mo the best remedy ho cquld recommend for the case, and he gave me a bottle of your Extract, which acted like magic; sinco then we hnvo become accustomed to use it both internally and externally in all complaints with (he very best results. On one occasion a substitute wns given to me, a larger bottle at same price-re-sult, no good-only SANDER'S Extract enters my house.—Yours truly, ,T. Hopkins, Auckland, N./,., 6/5/18.—Advt.