BIG BUSINESS

Hokitika Guardian, 8 March 1921, Page 4

BIG BUSINESS

ORGANISING OF STATE BUYING. WELLINGTON, March 3 The Government has organised, through the Public Service Commissioner, an important development ol the Public Tenders Board which has for some years dealt with important tenders for material required lor various branches of the State service. Mar experience in particular showed the weakness of allowing different departments of 1 he State to enter the market as competitors, and the formation ol a hoard of business men to deal with Defence purchases effected very substantial improvements b'otli in [nice and quality of tlie goods supplied. The Government has set up a Tenders Board which now covers all the important departments of State, and except for small purchases, or materials required in an emergency, all the buying for Government Departments is in future in be done through the one organisation. Its business will run into many millions per annum, and a special stafl, including probably expert .buyers, will be appointed by the Public Service Commissioner.

Mr R. W. M’Vill.v, General Manager of Railways, is the chairman, and the members include the heads of the Post and Telegraph Department, fhe Chief Engineer of Telegraphs, Engineer-in-v ..ief of the Public Works Department., Engineer in charge of hydroelectric works, a member of the Board of Trade, and other heads of important having departments. Provision is

imule for the heads of departments m represented on the Tenders Board to si and vote when purchases effecting thei particular department- are being eoi sidered.

This concentration of State buying into one channel is expected to have good results in facilitating the business of the suppliers. It will effect an improvement in quotations, for the differences in price for the same article supplied to different Government departments are, to say the least, illuminat-

ing. There are minor differences in opacification of goods used by different departments in large quantities, and the board intends to carry out a reasonable policy of standardisation to the mutual interest of contractors and the State.

It is possible, also, under the new system, to carry out a definite policy of encouraging local industries and British suppliers. I understand that the view taken by the hoard is that these factors are to he given sympathetic attention, and that subject to tin l public interest being conserved, preference is to he given to those who are taxpayers of the Dominion when State business is to be done.

Public Departments requiring materials " ill requisition the Tenders Board, which will concentrate all the orders for particular goods, place its purchases under the best conditions, and issue the necessary delivery, instructions to the contractors. As the Railways, Public Works, and Rost and Telegraph Departments have been included in the scheme, it will be seen that the organisation will constitute the .biggest purchasing power in the Dominion.