GOVERNMENT CONTRACTS.

Otago Witness, Issue 3383, 15 January 1919, Page 17

GOVERNMENT CONTRACTS.

FOODSTUFFS RELEASED FOR ORDINARY MARKET. AUCKLAND, January 10. The demobilisation of troops in New Zealand has had the effect of releasing large supplies of certain lines of foodstuffs for. which contracts had been let by the Government. Practically all the grocery fend meat supply was in the hands of southern firms, but Auokland houses held large contracts for biscuits and jam. An adjustment of these contracts, unfilled as a result of demobilisation, has now been arranged, a certain quantity having been reserved for local military requirements, and the remainder allowed to revert to the ordinary market. This additional supply has greatly relieved the position, the looal markets having been very short of these goods for several years past. The necessity for meeting military requirements, together with the difficulties associated with a shortage of labour and shipping, has kept local supplies very low. The island trade has had to be cut out completely by one firm, in order to meet the home demand. The manager of another leading firm states that about 50 tons of jam, representing the unfilled of New Zealand military contracts, was being forwmrdad by the Government to England for the vee of Now Zealand soldiers still in camp there. At the beginning of the war great difficulties arose in connection with the jam and bisouit making industry, as a reßulb of the shortage of tin plate and glass jars, but it is stated that the position has greatly improved, supplies of tin plate having come forward more readily from England.