GOVERNMENT BUYING

Press, Volume XCI, Issue 27639, 21 April 1955, Page 12

GOVERNMENT BUYING

CHANGE OF SYSTEM URGED

DISCUSSION IN HOUSE OF REPRESENTATIVES

(New Zealand Press Association) WELLINGTON, April 20. Price rings could be broken if the regulations governing the Government Stores Board could be altered to place contracts without the need for calling tenders when it was known that a ring price would be submitted, said Mr F. J. Kitts (Opposition, Wellington Central) in the House of Representatives this afternoon. The present interpretation pf the regulations assisted in the maintenance of price rings in the country, he said. , In a written reply to a question, the Minister of Finance (Mr J. T. Watts) said that no amendment, of the Government Stores Regulations was necessary to avoid ring tender prices, and although it was the almost invariable practice df the Government Stores Board to invite competitive tenders, the provisions of the regulations wopld permit this practice to be dispensed with if the circumstances of a particular case warranted that action. Mr Kitts said that the present system of the board was either to give all ring price tenderers the contract in turn, to split the country into areas and let contracts for each area, or to split up the orders ampng the tendering companies. Among the supplies needed by the Government and which were tendered for as a ring were tyres, electrical equipment, and petrol. He suggested that only a direct instruction from the Minister would break the present interpretation of the regulations.

Mr J. G. Barnes (Government, St. Kilda) said that the Railways Department had a more realistic approach, and when all things were equal a ballot was held. ‘‘When a tenderer finds he is missing out in the ballot he will soon drop prices,” he said.