BULK PURCHASES.

Gisborne Times, Volume LXXXV, Issue 12913, 15 July 1936, Page 7

BULK PURCHASES.

i 00-OIIDINATINfi BUYER S' SCHEME.' ANOTHER DISCUSSION IN! COUNCIL. AFFILIATION STILL APPROVED At its meeting a fortnight ago the Gisborne Borough Council decided to pay \ one guinea to affiliate with Coordinating Buyers Limited, and thus jj C enabled to participate in hulk pnr r chases of goods. 'ifLasj;, evening, the .discussion was reopened, motion 0 f Cr. 11. Holmes, wlm sought to Have "y t ' K \ previous decision rescinded. Jiis r efforts wero hot successful* however, and his motipn was lost; by six votes to three. • In accordance with the. motion previously given Cr. Holmes moved that tho previous resolution of. the council deciding; to affiliate with Co-ordin-ating Buyers and obtain bitumen for tho current year bo rescinded. Speaking to his motion, Cr. Holmes said lie was opposed to hulk purchasing on tho lines named. The council, he contendedi could only affiliate with public bodies constituted for the welfare of the community. To call a donation of gift of one guinea an affiliation fee was a camouflage. It was a brain wave to get local bodies to affili ate with the company. There were 630 local bodies in New Zealand. If the affiliation fees were called by their proper names donations or gifts, the. Auditor-General would have something to say on the matter. lie thought the whole thing was absurd, the company proposed to do was clone everyday by merchants, but those linns did not ask for affiliation fees. " ♦ Some members of the council, continued Or. Holmes, might say that it was not intended to buy such articles as printing or other goods. He knew councillors • did not intend to follow that, course, but councillors bad been known to change their minds. He believed in encouraging the trade of the, town. Continuing, Cr. Holmes said there werre only two concerns in the world manufacturing bitumen. Both -had developed bitumen to a considerable extent and had carried out extensive research work. The markets and prices ,of these products was regulated by the other products distilled. Any company in New Zealand which desired to purchase bitumen must go to the same place as supplied the Gisborne Borough Council. No nmtwhether, they bought 50, 100, or ,500 tons, there is no difference in price. The price is fixed in Mexico, and the bitumen is shipped to Auckland and distributed' from there. There is no change in price Unless there'is a superabundance of material. By linking up with Co-ordinating Buyers they would get no advantage. Ho ventured to say that the Borough Council if it did not affiliate with Co-ordinating Buyers would buy its bitumen at tho same price as the %>$ c County Council which had affiili nted with the company. It was possible to get cheaper bitumen but the material' was I 'not 'so "good; There are 13 different kinds of bitumen com ing to' New Zealand. Different engineers liad different ideas. The penetrating qualities of bitumen could only be ascertained by experts in the two works be had mentioned. If the council got bitumen from any other source than those two companies it was taking a risk. The representative of the company bad definitely stated that the com- - ■,pany took no responsibility, continued Cr. Holmes. He asked if the council was to pay to the bitumen firm or to the Co-ordinating Buyers who would deduct the commission. They were so many complications that the whole thing was not worth while. Cr. Bull contended that as the representative had stated the capital of the company was £2,500', he thought the company was doing remarkably well. Cr. De Costa urged the council not to be influenced by Or. Holmes remarks. Tho Mayor said the only exception taken by the councillors was to Hie principle of affiliation. It was not the intention of the council to go to Coordinating Buyers to purchase anything that could be produced locally, and he wanted to assure tho printing trade to that effect.- So far as printing was concerned, provided there is competition, the council did not intend to go outside the town. Tho council thought it could buy bitumen better by combining with other buyers. If the could get bitumen at £2 a ton cheaper it would be u very big item indeed. They wero tiot bound to Co-ordinating Buyers and the guinea was well spent if they could get service. The council was told it would got tho invoices and would pay, and would then pay 21 per cent commission to Co-ordinating Buyers. The Council was not bound to the company, bu the thought the council should give it a. trial. The council was a, big. buyer of bitumen and if ; they could get an advantage it would be much cheaper for the ratepayers. Ho certainly advised that the council should give the scheme a trial. Cr. D. S. Thompson said it was just

possible they, might be able to bay V petrol and oil cheaper through Co"l. orclinating Buyers. Any tiling produced locally would have. preference. Cr. J: H. Hall said the. council was to get quotations from Co-ordinating Buyers but they would also get their own quotations. If the prices were different, they would find out, and the guinea, was well spent.

Cr. P. H. Bushnell said that, if the guinea fee was withdrawn, he would Support Co-ordinating Buyers. Cr. G. Bradley Smith said, if Cr. Holmes,’ statements on bitumen were correct, was there any object in affiliation ?

Tho ftjayor replied that prices rtceived previously had varied. Cr. Smith, continuing, said lie eoiild see no harm in joining for, say, twelve months.

In reply Cr. Holmes said everyone seemed to have the point he was making. The firm was merely a broking firm and to ask a local body to give them a guinea for the purpose of supplying their own wants was ridiculous. They were not getting value for the guinea. Any other firm would only be too. pleased to get business on the same terms. It was not the guinea, biit the principle that he objected to. The council,might just as well affiliate with a private firm to supply goods to the council.

The motion was then put to the meeting and was lost by six votes to three. Those voting for it were: Crs. Holmes, Bushnell and Bull, and against it were: The Mayor and Crs. Smith, Thompson, Webb, Hall and De Costa. “

PROTEST FROM PRINTERS’ UNION WELFARE OE WORKERS WILL BE AFFECTED COUNCIL’S REASSURING REPLY. Deal big with the same subject the fo'llow’ng letter was received from the Gisborne Printing and Related Trades Union. “Wc respectfully wish to draw your attention to a matter which has come before our notice, namely, the 'appelauaince in ou:r town of a representative canvassing to obtain bulb orders for various commodities which, should it bo successful will mean the sending of work out of Gisborne and tlie cutting of prices. “We notice by a Press report that your finance committee recommended thq council to affiliate with Coordinating Buyers. Ltd., and invite it to obtain quotations for the supply of bitumen for the current, year. This in one respect, might he all right, as that commodity is not obtainable locally, but look .at the other side of the question—what about commodities procurable in Gisborne? “Take printing, for instance. We learn that the person referred to lias submitted prices for such work aa drivers’ licenses, electoral noils, etc., the idea being to group all the requirements of local bodies in New Zealand. Surely this phase of the question should appeal to you as it appeals to u«. If this grouping should materialise, it simply means that the printing work that is done in our town will, go to tho cities, with the result that men engaged in the printing trade in Gisborne will lose their 'employment. “Other local bodies such as the Cook County Council and the Power Board are also concerned, so you will perceive that if all join in tho scheme ft M going l to he to the detriment of the workers in our tr ade, and also to the welfare of Gisborne as a whole. “Therefore, on behalf of our members we enter a. strong protest against any such action being taken by the council.” On the motion of the Mayor it was decided that a reply should be sent stating that it is not the intention of the council, to go outside of Gisborne for any goods produced locally.