15

H.—l4

At present, Departments purchase independently stores and supplies common to each, and it is obvious that bulk purchasing with delivery at specified places would be more economical than the present piecemeal method. This could be effected without any serious disturbance of the existing stores systems if the leading stores controllers co-ordinated their purchasing, and if the smaller Departments were guided and directed by these experts. 81. At the same time the Commissioners adhere to their recommendation that there should, as far as possible, be a Central Purchasing Department. The success of the Munitions and Supplies Department is ample evidence of the value of such a Department. In the Report of the Machinery of Government Committee which sat recently in London the following appears ;— We have considered various proposals for concentrating in the hands of a single Department of State the business of obtaining the supplies required by the Government whether for purposes of national defence or for civil purposes. Wo are sat'sfied that it would be advantageous to establish a Ministry of Supplies without delay, in order— (a.) To eliminate competition between Departments for labour, materials, and the services of individual firms : (6.) To ensure that the prices paid and the conditions imposed under Government contracts for various classes of work should so far as possible be arranged upon uniform lines : (c.) To secure economies in the use of technical staffs (such as contracting, accounting, costing, and inspecting sections). It seems clear that the imperfect allocation of functions between Supply Departments which prevailed on the outbreak of the war, and has not even now been completely remedied, has resulted in very considerable waste of effort and in extravagant expenditure. We therefore recommend that the Ministry of Munitions should be reconstituted as a Ministry of Supplies. We have not found it possible to enter upon the detailed inquiries which would be necessary to determine the precise scope of the functions to be assigned to the Ministry of Supplies at the outset, and we suggest that the Minister of Supplies should be entrusted by the Government with the duty of formulating, in consultation with the other Departments concerned, proposals for concentrating in the Ministry of Supplies as much of the business to which we allude in this chapter as it may be possible for him to take over, either at once or at some future date. Store Accounts. 82. In the leading Departments, notably the Public Works Department and the Government Printing Office, sound systems have been installed. The accounts are well kept, the cost is readily ascertainable, receipts, issues, and balances are accurately recorded, and the ledgers disclose at a glance the position of the stocks. Leakage and loss can be easily detected, and full control is exercised. The stores systems of some of the smaller Departments require attention. Sale of Condemned Stores and Surplus Material. 83. Stores and surplus material should not be discarded or sold until other Departments have been consulted as to whether use can be made of them. In one or two isolated cases the purchase of discarded material by a departmental officer was noticed, and, while there was not the slightest suspicion that the transactions were other than bona fide, such a practice, if allowed to grow up, would sooner or later cause a scandal. Sales to officers should be absolutely forbidden. Nugatory Expenditure and Writing off Stores, etc. 84. Stores are found to be written off under different authorities, some of which do not appear to be sufficient. Where fairly large sums are involved it is suggested that the authority of Parliament should be sought, either by specific appropriation or by the indemnity clause in the annual Appropriation Act. 85. In the case of debts due to the Crown but irrecoverable, the Minister in charge of the creditor Department submits particulars to the Minister of Finance, who in turn reports to Parliament in the Appropriation Bill and its schedule. This ensures scrutiny by the Treasury and Audit, and vests the power of discharge in Parliament, a constitutional safeguard which should be followed as regards nugatory expenditure and the writing-off of stores.