TEN MILLIONS

Evening Post, Volume XCI, Issue 110, 10 May 1916, Page 8

TEN MILLIONS

ON IMPERIAL ACQOUNT WORKING OP THE SUPPLIES SCHEME BUSINESS ON MODERN LINES. The Imperial Government Supplies Branch began its operations in March, 1914. To-day it has paid out on Imperial account over ten millions sterling, as follows :— £ Meat 9,143,794 Cheese 845,474 . . Scheelite ... 28,683 Total ... 10,017,951 It began with the shipment of New Zealand frozen meat to the Imperial Government. The branch now not only handles the meat, but also cheese purchased on Imperial Government account, distributes the butter purchased by the Dominion Government, and controls the kauri gum export. The paying out of ten millions sterling almost entirely for food supplies for the .Imperial Government makes a suitable point from which to review the work done and the methods of doing it. Through the courtesy of the Prime Minister (Bt. Hon. W. F. Massey) the Evening Post was afforded every facility in obtaining material for this purpose, and an insight into the operation of the Imperial supplies scheme generally. The scheme is the working out of>aplan laid down and accepted by the conferences convened by the Prime Minister with freezing companies and others concerned. It has been adhered to from the firet, and has demonstrated the fact that a Government department can be run upon strictly modern business lines. The scheme began with the handling of the frozen meat requisitioned by the Dominion Government on behalf of the Imperial Government, but it was at the outset made so elastic that it now includes in its activities cheese and scheelite for the Imperial Government, distribution of butter to the camps and transports, and affairs connected with the kauri gum export. The Supplies Branch began its work first with the meat export as from 3rd March, 1915, since when it has disposed of— Beef,' quarters ... 719,089 Mutton, carcases . . 3,045,732 Lamb, carcases ... 4,376,426 The total payments for the meat alone to date (9th May) amount to £9,143,794. Steamers loaded with meat which have arrived at their destination, are en route to Great 'Britain and are loading in the Dominion, number- 95, and the Clan Mactavish. which put up such a grand fight against a German submarine before she was sunk, has so far been the only vessel lost. On board her were 8883 quarters of beef, 20,718 carcases of mutton and lamb,1 included in the above totals. ■ There is this to be remembered in connection with, any "consideration of the Imperial Supplies Branch system: It probably could not have been brought into existence, except by a Government; Its turnover is stupendous, but the Government is the only buyer, using what it requires itself and distributing the remainder—in the case of meatthrough the wholesale firms which handled it before the war. DISTRIBUTING COSTS SAVED. I : : Before the meat was requisitioned it was disposed of by the producer to the freezing companies by sale, or frozen and shipped on his account, either on consignment or by sale on a c.i.f. basis, that is, a landed price in the United Kingdom, including the cost of freight, insurance, exchange, and other charges. That necessitated many buyers, many hands for the meat to pass through. Firms in the trade were out to buy or to obtain consignments of meat through themselves. The disposal of the great output of IJew Zealand meat was carried out by a number of different firms, all highly specialised in the business, and handling the frozen and chilled meat of other countries. There was naturally competition for the trade. The same system holds good with regard tto the Gutter and cheese outputs of this country. Firms buy these goods outright, that is, all the butter or cheese made during the season, or they make arrangements to receive and sell the produce on commission on account of those concerned ; or factories may t consign part and sell part of their outputs. But, in any case, under pre-war conditions, these methods of disposal necessitated the employment of much highly expert and indispensable labour, all of which so far, at any rate, as the beef, mutton, and lamb, and cheese (as to one-third of the output) are concerned, is now done by a staff of the slenderest proportions. * Before the war officers of the Agricultural Department carefully watched and inspected and graded all meat and cheese respectively intended for export, and they continue to do so. By systematisation, and the bringing of the distribution under one department, an immense saving in the cost of private individual effort has been effected.

To-day, not only- meat and cheese, but scheelite and kauri gum and butter, come under the attention of the Imperial Supplies .Branch, which is under the direction of Mr. Robert Triggs, Public Service Commissioner, and .is staffed by the officer-in-charge (Mr. F. H. Taylor), the accountant (Mr. D. Rutherford), two clerks, a typiste, and a messenger, and in one room in the G.P.O.

There is a lot or work associated with the branch, as may be surmised from the immense turnover and the development of the business from being the medium through which the meat requisitioned has to pass to include cheese and other exports. Time .and labour, however, are saved by the utilisation of every modern means in conducting big business. System has been the means of effecting a great economy of labour. For instance, Borroughs adding machines and "Millionaire" machines have been installed, saving an immense amount of calculation and arithmetical "deadwork," besides ensuring accuracy. The cost so far to the turnover has been .0025 per cent., to be precise. System, too, has effected a great saving in the forms that at first had to be filled in in connection with meat exports. In one instance, that in the case of companies freezing on account of clients, the adoption of a uniform set' of documents covering each complete shipment reduced a multiplicity of documents, relieved the companies of much work, and assured celerity in the distribution bf proceeds of shipments to clients. In fine, red tape is wholly dispensed with. The result is that a standard of efficiency and economy is set up which is not popularly associated with a Government Department.

FIRST-HAND INFORMATION.

As an instance of the businesslike way in which the branch is run, questions were asked oa the spur of the moment and answered (thanks to the Prime Minister's " influence) at once as to amounts paid, to whom, the., cargoes of individual ships and their destinations, all to date, and ot.hcr matters which were quite confidential. There was no waiting; the information was available s.s soon as asked for. This is mentioned onb' as illustrative of the Quickness with

which important data can be furnished. Payments for shipments of meat and cheese are made within 24 hours of the receipt of the shipping documents by the Supplies Branch, and in the majority of cases'cheques go out to those concerned by the first mail leaving after the shipping documents have been received. The whole business is practically on a cash basis. Once the produce is on board the ship and the shipping documents are in the hands of the branch, the shipper gets his cheque by the outgoing mail, be it meat or cheese. To deal with the freezing companies was easy compared as with the cheese factories. The cheese business necessitates the keeping of 293 separate accounts. But, as with the meat and other commodities, the accounts aro right up to date, so that by the end of March last, the financial year, accounts were all audited and done with a \veek after. ■ SECURING TONNAGE. It was one thing to requisition the meat and cheese," but quite another thing to get it Home. The necessity of requisitioning all the insulated tonnage under the Red Ensign was forced upon the Imperial' Government. This was done. Although all the cargo space desired may not always be available just when it is wanted, yet, notwithstanding the heavy toll on ships by the enemy and the use by the Admiralty of so many steamers, insulated and others, the produce has been got away with marvellous regularity in the extraordinary circumstances of the times. The Supplies Branch, however, materially contributes to this result in that it furnishes the New Zealand Overseas Shipowners' Committee with important information enabling it to allocate the insulated space available, the committee in its turn representing ito the Shipping Control Authority in London the tonnage that this country will require. The Supplies Branch, as has been stated, purchases on behalf of the Imperial Government all scheelite mined in New Zealand. This operation began in September last, ncverthclf\«s 161 tons of the ore hay« been shipped, and for this £27,957 has been paid out. It is purchased on assay, the fixed price being 55s per unit of tungstic acid. The Supplies Branch here makes an advance based on the Dominion Government's assay, ships the ore to the Imperial Government's brokers, and accounts to the exporter for the balance (less advance and shipping and other charges) when account sales are received. FUTURE POSSIBILITIES. The cheapness and simplicity with which the, Supplies Branch system has been worked so far, and the magnitude of its undertakings, suggest the feasibility of enlarging its scope. Whether it will expand into a regular department or be dropped at the end of the war remains to be seen. It has, at any rate, fully justified its institution. Of course, a Government can do anything; whereas a private concern resembles a tramca-r in that it must keep to its rails, a Government, like a motor-car, can.go anywhere. •' ■■ ■ ■ It is a question full of interest to the pi'oducing . and trading community as to what the Government, with the successful working of the Supplies Branch before it, may do next.