CREAM-CARTING CONTRACTS.

Matamata Record, Volume XVI, Issue 1446, 31 July 1933, Page 7

CREAM-CARTING CONTRACTS.

HINUERA COMPANY POLICY Public Tenders in Future. The policy of the directors in arranging - carting contracts by private treaty was condemned by suppliers at the annual meeting of suppliers to the Hinuera Dairy Co., Ltd., it being pointed out that preference could still be given to the best men though public tenders had been called.

Why Tenders Were Not Called.

Mr. P. Hawke raised the question during the discussion on the annual report, and asked the chairman why puolic tenders had not been called. Replying to Mr. Hawke, the chairman said the directors had not called for tenders for cream carting as they had received good service in the past from those who were now carrying on this service. It cost a good deal to secure a carrying outfit, and when the carriers offered a reduction of 10 per cent, it was accepted. He urged farmers to assist the carriers by attending to the approaches to their cream stands, and also to erect shelters to keep the sun off the cream.

Mr. T. Corry added that when the price of butter first dropped the carriers had voluntarily offered a reduction, although they were entitled to hold the company to their contract. When the carriers came and offered a second reduction the directors extended the contracts for two years. Mr. J. Cotter supported both speakers, and added that the carriers were also commercial agents, and it was essential the company should have reliable men or else the company might suffer. Advantage of Public Tenders.

Mr. Hawke said Mr. Corry had omitted to state when the carriers first offered the 10 per cent, they had received an extension of one year on their contracts. He had nothing against the carriers and believed they gave every satisfaction and efficient service. The fact remained, however, that the suppliers were entitled to the lowest possible costs. This could only be secured by public tender, which did not mean that any particular carrier need be accepted. The Government had passed legislation compelling county councils to call for public tenders in the public interest, and he held the same process should be carried out by the Dairy Company. Te Poi had effected a reduction of from 4s 6d to 3s 4d per ton, and another company carting cream from around the district to Waharoa were getting the work done for about two-thirds of wnat ’t cost their company."

Mr. W. McNab said that he intended to bring the matter up as he strongly objected to contracts being let by private contract instead of public tender.

Mr. N. S. Griffiths supported the demand for public tenders.

On the motion of Messrs. P. Hawke and N. S. Griffiths, it was unanimously decided that in future all contracts for carting be called by public tender and not let by private treaty.