BRITISH WIRE ROPES

Greymouth Evening Star, 22 July 1936, Page 14

BRITISH WIRE ROPES

PRICE-RING DENIED.

[per press association.]

AUCKLAND, July 21.

The formation of a price ring bj British wire rope, manufacturers, who took advantage of the British prefeience to quote unjustifiably high puces in New Zealand tenders, one of the principal accusations made last year when the Auckland Harbour Board diverted an order for steel wire ropes from Britain to Germany, after is dissatisfaction with the prices submitted by British firms, is denied in a memorandum prepared by the Department of Overseas Trade Section of the Board of Trade which was placed before the board at its meeting to-day. “The report bears out. the contentions of those-of us who supported living these tenders to British manufacturers.” said Mr. T. A. Bishop, after the chairman. Mr. C. G. Macindoe, hat moved that the memorandum be received. “I move as an amendment that the explanation be accepted and that in future the British preference clause be restored in all contracts. The chairman said that it was on 5 a question of receiving the memorandum, and future policy was not to be decided on in any way. The board was not. tied to any fixed policj. an had been forced into the position circumstances with which the members were familiar. All things being equal, the board would give preference to British manufacturers. The amendment was lost and the memorandum received. “Admittedly there is by agreeinen among manufacturers in the United Kingdom, a price agreement, in l°’’ bv which all member firms of the Federation of Wire Rope Manufacturers of Great Britain are bound," says the memorandum. “Some measure of reduction below the domestic price basis is permitted bv the agreement for certain tenders called for overseas, and m the case of tenders called by the Auckland Harbour Board the. agreed reduction was l (l per cent. “So far from its being true, therefore, that the United Kingdom manufacturers attempted by mutual agreement to charge the Auckland Haibour Board an excessive price for wire ropes required, all firms concerned quoted prices for their material on the basis of 10 per cent, below the prices which would have been quoted m the United Kingdom to purchasers of goods of. precisely the same quality and class, and that, although they knew themselves to be immune from foreign competition.”