BRITISH PURCHASING OFFICERS OPPOSE STATE BUYING

Greymouth Evening Star, 5 October 1949, Page 6

BRITISH PURCHASING OFFICERS OPPOSE STATE BUYING

LONDON, October 4.—The complete abandonment of the present policy of Government buying, and an immediate reversion to private trading, were urged by 2000 representatives of leading British buying houses who attended a conference of purchasing officers at Scarborough. _ The purchasing officers claimed that, under .sterling devaluation, British industry was being forced to pay excessive prices for raw mateiials, many of which were obtained from the sterling area. “Arguments for freedom of choice and competitive prices have a redoubled force in the country’s present economic plight,” said a unanimous resolution which will be submitted to the Government. “No buyer believes in the mytn or the stability of prices, yet this is the peg on which State trading is hung,, said Mr A. H. Thomas, who opened the discussion, at the conference. “Stability of prices with the Government means large and unpredictable fluctuations at infrequent periods. Such fluctuations create havoc with costs. “No Government, whatever its political colour, can ensure supplies of raw materials when so many factors affect the issue. Unfortunately, after so many years of stagnation, it is problematical whether private enterprise can marshall the necessary financial and material resources to be able to resume operations under the present conditions. “It seems that only a trade recession, with its attendant slackening of demand, can clear the way for a return of the private trader. It is deplorable that such a contingency has to be contemplated, but if it is unavoidable, it is better that the consequent commercial, risks should be borne by private enterprise, rather than by the Government.”