PURCHASE OF SUPPLIES

Dominion, Volume 9, Issue 2806, 26 June 1916, Page 6

PURCHASE OF SUPPLIES

: A STATEMENT BY THE MINISTER. Ever since the war began there have been rumours of irregularities in the purchase of military supplies, of favouritism, and other matters. When the Minister of Munitions and Supplies presented his very full report to the House on Friday several members asked Questions whioh showed thai they were not satisfied that the rumours were entirely without foundation.

Tho Hon. A. M. Myers, replying, said that so far from tho prices paid by the Government being so nigh as to permit contractors to make large fortunes, they would compare very favourably indeed with those paid in Australia, even with those paid in England. There wore wild statements made about the profits' the contractors were supposed to bo making, but he could assure tho House that tenders had been called for supplies throughout tho length and breadth oi the Dominion, and he had' had to advise him some of the best experts in the country. He could say without fear of contradiction that tho prices paid were fair and reasonable, and that tthe Government wa6 getting a perfectly square deal. If any honourable member would see" him at his office he would show what prices were paid for every article and what justification there was in every case for the payment of those prices. His Department did not come much into public prominence, but nevertheless it did useful work. He had endeavoured to übb his business experience to enable the Government to get supplies in a businesslike way. Mr. Wilford: Let's test you. What's the price of flannelette?

Mr. Myers: I can't tell the honourable gentleman off-hand, but if ho will come to me at my office I will show him exactly what we have paid for flannelette, and I will make this bolder statement:— I undertake to convince him in five minutes that the price we are paying is a right price, having regard to quality. Replying' to another question, Mr. Myers said that there had been-cases where the Government had wanted goods s urgently and had asked the contractors to go on supplying goods after the expiry of their contracts. But as a general rule, very soldom varied, fresh tenders were called for when a contract expired. Sometimes supplies were required lor ships about, to depart, and there was not sufficient time to call for tenders. However, arrangements were being made to meet these cases, livery man had as good a chance as his neighbour. There was no favourit-. ism. It was not correct to say that the price paid for khaki cloth was too high. It compared well with' the prices in Australia and England. It might leave a profit to the woollen mill 'owners

Mr. Wilford:Yes, and a big one, too. 1 Mr. Myers insisted that the profit made by the mill owners was not greater than that which they might have earned by running their mills to supply civilian demands, and that the price paid by the Government for khaki was. quite justified.