BIG BUSINESS

Evening Post, Volume XCVI, Issue 154, 27 December 1918, Page 7

BIG BUSINESS

THE WAR SUPPLIES

REVIEW BY HON. A. MYERS

Speaking in the House of Representatives last session, Mr. 0. E. Statha-m, member for Dunedin Central, congratulated the Hon. Arthur Myers, Minister in Charge of Munitions and Supplies, on the fact that New Zealand was the only country in which no defalcations had occurred ip. connection with the purchase of military supplies during the war. In an interview on the subject, Mr. Myers stated that naturally it was gratifying to him and his Department that in the expenditure of snch a large sum of money no case of fraud had taken place, proving that in inflicting substantial penalties at the outset for what might f apparently be trivial breaches of specifications of tender, it showed to all that while sound business principles'were to be the governing factors, in his Department's methods, no laxity by the successful tenderers would be tolerate ed in carrying ouV contracts affecting the food or equipment of the New Zealand military forces., THE RANGE OF WORK. , The Minister remarked that a review of the position shows that the New Zealand Government decided in 1915 to train and send 30,000 men annually to the front. No stocks of equipment were then held, and as the tender system failed to supply the required clothing and material, it was decided to go direct to the source of supply, ,The responsibility of providing was therefore vested in the Minister in Charge of Munitions and Supplies in August, 1915, and work was immediately put in hand under two headings : (a) Munitions; and (b) Supplies. After the most exhaustive inquiry, however, in regard to the former, it was found that New Zealand had not got the necessary machinery to produce munitions, and at the same time carry on essential industries. The matter of providing clothing and equipment proved a more difficult undertaking, as the stocks held throughout the Dominion were low, and prices were rising before the Department began to operate, which resulted in large, quantities having to be purchased at somewhat ■unfavourable market conditions. The results wore entirely satisfactory, The troops leaving the Dominion were equipped practically with New Zealand-made articles, which proved ,to be second to none, in quality and. reasonable in cost. The, methods pursued by. the Department resulted in ample stores being accumulated to allow of freedom of action, b;it during the last twelve months caution had been exercised in placing contracts, aiid consequently stocks now held were Jow, and any not required by the military authorities could be readily disposed of . '.The Department also controlled all military expenditure on food,, forage, drags, and miscellaneous requirements, which had enabled the. Defence Department to release experienced officers for active service at the front. The total expenditure by the Department since its inception exceeds £4,500,000, and represented .over 90 million articles, said Mr. Myers. COAL SUPPLIES. The Department had also controlled the distribution of coal; the total amount dealt with was over five million tons. PRIORITY PERMITS. The business under priority permits exceeded £4,900,000 and represented orders supported by the Department placed by New Zealand merchants in the United Kingdom. Canada, United States of America, India, and Australia. In' this connection the Minister stated that cables had been.received conveying the cordial thanks of the B-t. Hon. Winston Churchill, Minister of Munitions in the United Kingdom, for the valuable assistance rendered by the Department and the local Priority Committee. PETROL. For the last four months the Department had exercised, in conjunction with the Board of Trade, control over the distribution of petrol, with the_ result that no complaint had been received foivthe last quarter. Everything possible had been^done to assist importers to procure space and supplies. INTERCOLONIAL SHIPPING. Owing to tlie extreme shortage of tonnage, particularly between Australia and New Zealand, arrangements had been made whereby shipping companies were able to consult the. New\Zealand Government Agent in cases of difficulty In'dealing with the variety of business which this statement indicates, Mr. Myers stated that his Department had the benefit of being associated with a ■'Board of Advice consisting of the experienced mercantile men who gratuitously placed their services at his disposal since the inception of the Department.