BIG BUSINESS.

Manawatu Herald, Volume XL, Issue 1920, 28 December 1918, Page 3

BIG BUSINESS.

THE WAR SUPPLIES,

REVIEW BY HON. A. 'MYERS

Speaking in the House of Representatives last session, Mr C. E. Statham, member for Dunedin Central, congratulated the Hon. Arthur Myers, Minister in Charge of Munitions and Supplies, on the fact that New Zealand was the only country in which no defalcations had occurred in connection with the purchase of military supplies during the war. In an interview on the subject, Mr Myers stated that naturally it was gratifying to him and his J)cpartment that in the expenditure of such a large sum of money no case of fraud had taken place, proving that in inflicting substantial penalties at the outset for what might apparently be trivial breaches otj specifications of tender, it showed to all that while sound business principles were to be the governing factors in his Department’s methods, no laxity by the successful tenderers would be tolerated in carrying out contracts affecting the food or equipment of the New Zealand military forces.

THE RANGE OF WORK,

The Minister remarked that a review of the position shows (hat the New Zealand Government .decided in 1915 to train and send 80,000 men annually to the front. No slocks of equipment Were then held, and as the tender system failed to supply Hie required clothing and material, it was decided to go direct to the source of supply. The responsibility of providing was therefore vested in the Minister in Charge of Munitions and Supplies in August, 1915, and work was immediately put in baud under two headings: (a) Munitions; and (b) Supplies. After Hie most exhaustive inquiry, however, in regard to the former, it was found that New Zealand bad no( got I be necessary machinery to produce munitions, and at (be same lime carry on essential industries.

The matter of providing clothing and equipment proved a more difficult undertaking, as (lie slocks held throughout the Dominion were low, and prices were rising before tluv Department began to operate, which resulted in large quantities having to be purchased at somewhat unfavourable market conditions. The results were entirely satisfactory. The troops leaving the Dominion were equipped with New Zealandmade articles, which proved |o lie second to none in quality and reasonable in cost.

The methods pursued by the Department resulted in ample stores being accumulated to allow of freedom of action, but during' the last twelve months caution had been exercised in placing contracts, and consequently stocks now held were low. and any not required by the military authorities could be readily disposed of. The Department also controlled all military expenditure on food, forage, drugs, and miscellaneous requirements, which had enabled the Defence Department to release experienced officers for active service at the front.

The total expend!)are hy tin* Department since its incoj»tion exceeds ,C!,500,000, mid rcprcmmlcd over DO million articles, said Mr Myers. COAL SCPPLIES. The Department had also controlled the distribution of coal: the total amount dealt with was over live million lons. I’HIOIMTY PERMITS. T 1 ic business under priority permits exceeded £4,000,000. and represented orders supported by the Department placed by New Zealand merchants in the Ended Kingdom. Canada, Cniled Slates of America, India, and Australia. In this connection (he Minister staled that cables had been received conveying 1 the cordial thanks of (be Rl. lion. Winston Churchill, Minister id' Munitions in the Ended Kingdom, for (he valuable assistance rendered by the Department and the local Priori! v Committee. - -* PKTROL. For the last four months the Department had exercised, in conjunction with the .Board of Trade, control over the distribution of petrol. with tlie result that no com i plaint had been received for the last quarter. Everything 1 possible had been done to assist -.importers to procure space and supplies. INTERCOLONIAL SHIPPINO. Owing lo the extreme shortage of tonnage, particularly between Australia and New Zealand, arrangenionts had been made whereby shipping companies were able to consult the New Zealand Government Agentin eases of difficulty. In dealing with the variety of business which this statement indicates, Mr Myers stated that his Department had the benefit of being associated with a Board of Advice consisting of the experienced mercantile men who gratuitously placed their services at his disposal 'since the inception of the Department.