THE COMMITTEE'S REPORT.

Evening Post, Volume CVI, Issue 116, 13 November 1923, Page 4

THE COMMITTEE'S REPORT.

PRESENT SYSTEM STRONGLY J CRITICISED. ,

The report of the InTestigation Com- | mittee (Councillors G. Mitchell, chairman, H. D. Bennett, W. H. Bennett, C. H. Chapman, and M. F. Luckie) is as follows:— 1. That it has investigatedi the method Of purchasing stores and general supplies for the council. • Many witnesses were examined, who were unanimous in their advocacy of a general stores department for the city engineer's and waterworks departments. Evidence shows that the present method of purchasing involves waste of time by council employees', that overlapping takes place, and that it'is an expensive and unbusinees-like method of procuring the council's requirements. A LACK OF GENERAL SUPERVISION. 2. The committee has heard sufficient evidence on this matter to warrant the issue of an interim report, and unanimously finds :— (1) That a higher standard of efficiency than now exists can be attained by bringing into effect a complete change in the method of purchasing the city's require- ' nients. (2) That the present system is cumbersome and expensive, and should be changed. Independent order.: ing and buying has led to lack of general supervision of purchasing. (3) That the recommendations herein .contained will, if j adopted, ensure a large annual saving to the city; in the direct cost of supplies, and '.an equally large saving in time ■.of, the council's employees. (4) IThat there is lack of any general ■ . ;\system in certain departments for - the control, issue, and check of : • -. stores, materials, plant, and "tools. (5) That the present time is opportune.' for changes herein recommended. In making this report, the commit- '■ tee desires to state clearly that any criticism contained herein is not directed against any of the council's officers, bufc against the method of purchasing which has grown up in corisoqueiice of the unsatisfactory market conditions obtaining during and since the wai 1. 3. The committee desires to point outi that some departments of the council havo now efficiently run stores within the department, but, viewing the position as a whole, it is satisfied that much improvement can be effected. Evidence shows that in some cases supplies are not sent forward by merchants, when required, and the employees of the council are held up in their \vork and are sometimes idle as a consequence. 4. The following stores are in existence at the present time, the figures giving the value of stock 31st March, 1923:— '£ Tramways Dept.: Car. shed store 22,722 Tramways Dept.: ' Overhead equipment and permanent way stores ;..: 10,579 Electrcity Department stores ... 2,257 Milk Department stores 1,331 Corporation yard .. (excluding waterworks) 2,800 Wilton road depot 962

• 40,651 For the year ending 31st March, 1923, 3tores and materials were purchased as under:— .3 1 •■■.■■.•■ In. I*-. 3 £ & £ General and loan requirements ... 68,545 — 68,515 Tramways and electricity 53,397 1,231 51,631 Milk Department 7,731 9,991 17,725 ; . 110,901 The ordering of the above, which excludes plant, coal, stationery, and office requirements, was carried out by 25 officers of the council, all acting independently of each other. Little 00-operation exists at present with regard to purchasing, -each department acting independently and in some cases, branches of one department buying quite separately from other branches of the same department.

The committee furnishes on separate confidential sheets illustrations of actual buying under existing,methods. A 5. Your committee is of opinion that ■for the economical working of all departments', the purchasing of all stores and materials should be placed under the control of a central purchasing and controlling authority. The committee does not consider it advisable that a central bulk store be provided, and is satisfied! that the present stores of the trading departments, with the addition of a new store at the Corporation yard for all other departments not now provided for, will adequately meet all requirements.

"ENTIRE LACK OF SYSTEM."

6. In aduTtion to the unsatisfactory system of purchasing the council's requirements, evidence shows that while in some cases businesslike methods of supervision and control and issue of stores materials, and tools are applied, and some officers are commendable in this feepect. yet in other departments responsible for the spending of large sums Of many, there is entire' lack of any proper system, and in somfe cases no system at al). In some instances a partial record is kept of materials used, but in

others no record exists to show to whom or to which work materials, plant, and tools were issued, where same were used and whetner surplus requirements were returned. The committee recommends the board (suggested herein) to at once institute a, proper system of control, issue, and check on all stores, materials, tools, and plant in all departments of the council. The committee here wishes to pla9e on record .the fact that notice of the above state of affairs was reported by the Internal Auditor in October, 1922

BECOMMENDATIONS MADE.

7. In making the following recommendations, your committee lias provided only the broad general policy leaving details to be arranged as experience may prove desirable, and in the interests of efficiency and economy requests the council to bring the recommendations into effect without delay. The committee recommends : (1) The appointment of a stores con-i trol board' consisting o f life Worship the Mayor as chairman, the City Engineer, the general manager tramways and electricity departments, the City Treasurer, and the general manager of the milk department. Such board to be responsible to the council for the carrying out of the general policy herein suggested ; to ' decide- the amount and method of purchasing, economical buying and general, supervision and control of all stores and -materials required, arid to put into immediate operation a sound system of accounting by all storekeepers in the council's employ. (2) The appointment of a purchasing officer who shall be the chief executive officer of tho board, and be responsible for tho purchase of all stores and materials required by all branches of the council's service, subject to the board's power to delegate to technical officers, where considered advisable, tho purchase of special technical requirements, euch delegation, however, not to be extended where two or more departments require simila.- materials. (3), That a. suitable store be eTected at the Corporation yard for the street works, waterworks, drainage, reserves, abattoirs, motor, fire brigade,, zoo, and all other departments not now served by a departmental store. _ (4) That as far as practicable a policy of standardisation of kinds and types of stores required by the city be adopted. (5) That only such quantity of stores and materials be held in stock as will ensure continuity of work in the several departments of the council. FOE BETTER METHODS. 8. The evidence before the committee has brought- to light weaknesses in the manner of controlling and issuing of tools, stores, materials, plant, and equipment, and the committee submit for the consideration of the board the following as a remedy for the. weaknesses disclosed :— (1) That the purchasing officer be responsible for the economical buying of. all goods, either by local buying or indenting, as the board, may direct, excepting such goods the supply of which the council may decide to invite tenders. (2) That the officers in charge of "Stores be required to requisition on the purchasing officer for all requirements from time to time in such, manner, as the board shall direct. (3) That the officer in charge of each store be responsible to the head of llis department that such supplies are requisitioned from the' purchasing officer and kept in stock as will meet the tb.quirements of the department., '.; 1 ; (4) That all persons authorised ■ to draw materials from stores be responsible to the storekeeper for the proper accounting for all supplies issued and for the return of stores and supplies not used-and all plant not immediately required; and that the board institute immediately a sound .system of receiving, issuing, and accounting for stores in all departments. _ (5) That district .engineers .be. respon- j sible for all supplies for their respec- ' tive districts. (6) That the board make arrangements to deliver all materials from stores to the district or works for which such stores are required. (7) That a uniform system be adopted for accounting for tools issued to workmen. ,-