PREFERENCE ABUSED.

Press, Volume LXI, Issue 18460, 14 August 1925, Page 10

PREFERENCE ABUSED.

PURCHASE OF GOVERNMENT STORES. PRICE-FIXING ALLEGED. ' (special to "the press.") WELLINGTON, August 13. The total expenditure on Government stores for the year was £4,416,833. One of tlio first matters considered by the Stores Control Board after its constitution was that of preference to local and British manufacturers Avhen competing with foreign manufacturers. With the approval of Cabinet it was decided to grant local manufacturers preference over all competitors, and British: manufacturers preference over foreign manufacturers. The degree of preference granted is substantial in each instance, being based generally on the Customs tariff. Each case, however, is considered on its merits, and if the approved percentage of preference is deemed inadequate, Cabinet is recommended to increase the percentage. There is no doubt that this policy has greatly benefited both the local and the British producer. Indeed, except for certain special classes of stores which are not obtainable within the Empire, the amount expended abroad is negligible. The policy has not, however, been pursued without difficulties arising, some of which.have caused serious concern to the Board, states the annual report presented to the House of Representatives to-day. The privilege extended to Dominion and British manufacturers necessarily implies that there shall be unrestricted competition among the preferred tenderers. Any action taken by preferred manufacturers or other, suppliers prior to the closing dates for tenders with the object of fixing prices is an obvious breach of the implied condition. It has come to the knowledge of the Board that attempts have been made to establish trade combinations for the purpose of controlling prices. . Such attempts, if successful, would necessitate action to protect the interests, of" the public. The Board trusts that.the preferred manufacturers will themselves use every effoVt to discountenance a system-which, if establishedj would render difficult the maintenance of a policy the Government desires to continue.