IMPORTS IN BULK

Otago Daily Times, Issue 24955, 30 June 1942, Page 4

IMPORTS IN BULK

ORDERS THROUGH TRADE GROUPS AUCKLAND FIRM’S CRITICISM Messrs F. E. Jackson and Co., Ltd., of Auckland, have addressed letters to Ministers and all members of Parliament, declaring that as they can see no merit in the Government's bulk buying scheme they will not be a party to it. The proposal, they say, is that orders should be consolidated for certain imported goods through trade groups to be formed in the four main centres. They understand that these trade groups are to collect and collate their orders for certain specified imports and then to hand the consolidated orders to the Government for importation by the Government: and that the Government will charge the. trade groups a buying commission on the following rates: —Up to £SOO value, 2 per cent.; from £SOO to £IO.OOO. 1 per cent.; over £IO,OOO, \ per cent. They understand also that the hardware trade group to be formed will require from all members a commission of 2 per cent, to be paid when the orders are placed to cover their overhead expenses; this contribution to be made whether or not the goods finally come to hand; that all import licences for certain commodities for the seventh period will be issued to these trade groups; and that importing firms that are not members of these trade groups will not receive import licences for these goods. They have been importing many of these commodities for the last 50 years, and have been large suppliers to Government departments in open and public competition. They were surprised to learn that the Government has submitted a scheme to Messrs Consolidated Importers (a private limited company to be formed), representing certain hardware importing interests under which this company would import all the tools and hardware for the Government departments at landed cost plus an on-cost margin of 174 per cent, to 20 per cent. They contend that in the interest of clean business and good government, Government contracts should invariably be called for by public tender and contracts placed with the lowest tenderer. To this end every firm that pays taxes should be given the opportunity to tender without fear or favour. If. accordingly, the Government would call public tenders they would be pleased to tender for the Government’s requirements at a small basis on cost. If, however, it was the intention of the Government to grant import licences for hardware only to the hardware trade group and to deny licences to individual importers, they would say that this system would inevitably lend itself to the gravest possible abuses with which they could not be associated.