SECRET PRICES

Hawke's Bay Tribune, Volume XXI, Issue 280, 10 November 1931, Page 4

SECRET PRICES

SUCCESSFUL TENDERS GOVERNMENT STORES. The Government Stores Control. Board lays itself open to all sorts of grave charges by persisting jn its policy of reserving the right to disclose the prices of successful tenders for Government stores. Confidence can be created only by the unreserved publication of these prices, says a statement issued by t’-c Associated Chambers of Commerce of New Zealand. While tho Public Works Department is willing to supply to unsuccessful tenderers the names of successful tenderers and the amounts of their tenders, the Government Stores Control Board refuses to supply particulars beyond the names of the successful tenderers. In tho face of strong representations on the subject, the board adheres resolutely to its policy of reserving the right to disclose or treat as confidential the prices paid for stores supplied to Government Departments.

This is not a good thing. There should be nothing in the nature of secrecy in connection with Government tenders, as secrecy leaves an opening for possible corruption. The association makes no suggestion whatever of improper methods by the board or the Civil Service, but is intent only on securing that very desirable competition that worJd be created among firms if the prices of successful tenders for Government stores were made known. That competition would benefit the Government and would also create a confidence in the .board which is at present lacking in tho minds of many people. CONDITIONS OF LOANS. Indeed, it is not uncommonly felt that tenders are sometimes accepted by favour, rather than because of price or quality. The suggestion has also been made th: t preference is given by the Government to overseas tenders, and that loans have been raised in London for public works on condition that British materials are used. Questions are as >1 as to what the Government really paid for those loans. These clouds can be readily dispelled by the board’s disclosi. ; unreservedly the prices of successful tenders. There is no valid reason why it should not do so. It is only a proper thing that unsuccessful tenderers should have the right to learn the identity and the prices of successful tenders with the name freedom as is the case with local bodies. It has been stated by the board that a number of tenderers stipulate that their prices are confidential and those tenderers give reasons for so qualifying their tenders. This “confidential” tendering is unsound policy. By reason of its present policy in regard to the prices of successful tenders, the board lays itself open to all sorts of charges, but it merely replies that the effect is lower prices. But is the result really lower prices? The association has on record evidence that overseas firms interested in New Zealand Government tenders are at a loss to understand why their New Zealand representatives are unable to secure for them the prices of successful tenders; the more so as such information is available in other British Dominions. Not only that, but a number of these firms have advised their New Zealand agents that thev will not quote unless that information is supplied. As it is unlikely that all the firms so excluded would invariably quote higher than the tenders received, then the result nlust be increased expense to the Government. OVERSEAS EXAMPLES. Inquiries made abroad have elicited the information that in the case of New South Wales practically every Government department now discloses to unsuccessful tenderers both the names and the prices of successful tenderers. In the case of British Columbia, the Government generally publishes the results of tenders, and in any case the information is available to other bidders. It is desirable in the public interest that each tenderer to the Government Stores Control Board should be given information direct as a matter of routine, stating the name of the successful tenderer and the price paid.