BULK PURCHASES

Gisborne Times, Volume LXXXIV, Issue 12902, 1 July 1936, Page 6

BULK PURCHASES

ANOTHER CUSTOMER FOR CO-ORDINATING BUYERS. i COUNCIL TO AFFILIATE, OPPOSITION MOTION LOST Tho question of supporting'the oh- j joets of Co-ordinating Buyers Ltd., by which articles for local bodies can be purchased in bulk form along with other councils etc. caused a dis ! cussion at the meeting of the Bor-

ough Council last evening, but it was eventually decided by 7 votes to 3, that tlio council should affiliate with tho company. The discussion arose through the Finance Committee’s recommendation that the council should affiliate- with Co-ordinating Buyers Ltd. and invite it to obtain quotations for the supply of bitumen for the current year. Cr. 11. Holmes said he was definitely opposed to the firm with Hio euphonious name. He did not see why tho council should make a. contribu tion to any purchasing body. Any merchant would be glad to receive funds to carry on his business. The speaker definitely opposed tho principle' of making a contribution to a private trading concern. They were only brokers. He moved that the report bo referred back to the committee.

Cr. 11. H. DeCosta contended that the council did not stand to lose, anything. What was a guinea, bo asked, if the council gained £3OO or £4OO. Cr. N. H. Bull, in seconding tdio amendment, said be supported LY. Holmes. Tie could see no reason to vote anything as the company was evidently in the market for business. IT the company got the whole of tho 086 local bodies in New Zealand thev would have quite a good sum to carry on with.

The Mayor. Mr. D. W. Coleman. ALP., said the council did not bind itself to buy anything. Councillors could see that if the council coordinated with other local bodies they could buy bitumen cheaper than at the present time. The quotations would be submitted to the council and if was not bound to take the article. For the guinea tlie council would get the various journals published iy the company and possibly would got good value for its money. A move bad been made for years to get the Municipal Association to take up the matter of co-operative buying but without success. If the principle was good for the Municipal Association then surely it was good for a private company. He thought, however, it would have been much more advantageous if tho local bodies bad taken up the scheme. If the council could get better service by private enterprise then it should take advantage o*' if. He did not favour private enterprise against State enterprise. He took up the same attitude in regard to the railway last year. He was in favour of private enterprise if the Government would not complete the lino.

Or. J. Hall contended that the guinea was not an entrance fee or a subscription ,as it was stated that much money would go in advertising costs. Some councils might apply for several quotations and tho guinea would be spent several times over. By the expenditure of a guinea the council would get an insight as to what tho council would gain by affiliation. Or. P. H. Bushnell considered the guinea was an imposition. The com-

pany knew that local bodies would support the scheme and were taking 21 per cent, on orders. Hrj thought the donation was unnecessary. GY. If. 13. Maude said the Council would receive particulars of plant for sale by other local bodies. So far as the principle was concerned, it meant a saving to local bodies and they must applaud it. Buying in bulk always meant a ’.owor price. The guinea did not commit them to anything and they checked the quotation on other prices. The. company told them if they paid too much and that was all to its credit He did not deny the right of a. private company to make profits so long as it helped to save money. The amendment was lost by 7 votes to 3 (TVs. Holmes. Bushncll and Bull! and the motion for the adoption of the report was carried.