RAILWAY PURCHASES

New Zealand Herald, Volume LXXI, Issue 21875, 10 August 1934, Page 12

RAILWAY PURCHASES

DISAPPROVAL OF METHOD POSITION OF LOCAL FIRMS An explanation setting out the reasons of the New Zealand Railways Department for purchasing high-speed twist drills in England through the High Commissioner's Office was received by the council of the Auckland Chamber of Commerce at a meetine yesterday. The letter. Which was signed by the acting-general manager, Mr. E. Casey, was in reply to representations made bv the chamber a short time ago. 'it was stated that the department was compelled to reserve to itself the right to purchase in the market that N was the most favourable, and it was in accordance with that practice that the High Commissioner had for many years arranged for the purchase of certain goods, machinery, etc., for the department. In connection with the purchase of high-speed twist drills it was an economical arrangement for them to be obtained through the High Commissioner. Before deciding to do this, however, in consideration of the department's future requirements, arrangements had been made to give the New Zealand vendors reasonable notice of the proposal, in order that they might regulate their indent orders. To assist further, arrangements had been made for the delivery of the first order to be delayed until January and the vendors would, therefore, have six months to reduce stocks that had been imported in anticipation of the department's requirements. If, after tho arrival of the drills now on order, it was ascertained that any of the agents held stocks of departmental sizes, the question of negotiating with the agents for tho purchase of such drills would be favourably considered. Tho chamber re-affirmed its previous decision that local firms should be given an opportunity of tendering.