GOVERNMENT STORES

Southland Times, Issue 19509, 8 May 1922, Page 5

GOVERNMENT STORES

PURCHASE BOARD TO BE APPOINTED. (Per United Press Association.) WELLINGTON, May 7. The Prime Minister announces the appointment of a Stores Control Board which is to superintend the purchase of all Government stores. This is in accordance with the recommendations of the Economy Commission, which reported that the established system of independent purchases by departments was wasteful and expensive. The Stores Board is to consist of the Minister of Public Works, the General Manager of Railways, the Secretary' of the Treasury, the Under-Secretary of .Public Works, and the Secretary of the Post Office. Thia board will have the assistance of an advisory committee consisting of the stores officers of the Public Works, Railways, and Postal Departments. All purchases are to be made by one of the big departments represented on the advisory committee. The smaller departments will send their requisitions to one of the big departments. Regulations are being issued providing that departments having surplus stores must notify the Board, which may order transfers. Any department becoming aware that stores can be bought below the market rate must notify the Board. Departments are to furnish information regarding unsatisfactory contracts and so forth. The scheme is expected to result in a very big saving. Investigations have shown that in some cases departments have bought in competition, forcing up prices against one another. It has been common for varying prices to be paid at the same time for the same goods by different departments. SCOPE OF THE SCHEME, (Special to the Times.) WELLINGTON, May 7. The scope of the Government stores scheme is explained in a memorandum that has been sent to the heads of the departments. “Investigations undertaken by the Treasury as to the prices paid by some departments for supplies as compared with what other departments have paid for the same commodities,” states the memo., “indicate the necessity for better control and for the utilisation of the services of thoee departments whose' large undertakings have necessitated the building up of an expert buying organisation to ensure not only purchase to the best advantage, but satisfactory service by the Board and its committees to the departments requiring supplies. It is essential that there should be the closest cooperation between the Board and its committees and departmental officers generally. The Board and its committees must have the support and assistance of the departmental officers. If the departments will loyally assist it will be possible to carry out all Government buying through the existing organisation of three purchasing departments without circumlocution or delay, and without the necessity of setting up a special buying organisation directly under the Board and apart from the departments’ existing organisation. The regulations require as a matter of policy that the buying for all departments shall be centred in the three “purchasing departments.” It is admitted, however, that there may be cases where owing to the class of supplies required or the particular experience of departments hitherto concerned in their purchase, special arrangements suitable to the case should be made, and the power vested in the Board to grant exemptions, either wholly or in part, will cover this. The Board and its committees will exist to help departments in every way possible, and will place at their disposal the organisation and experience of those departments whose offioens have had the widest experience of the purchase of supplies in large quantities and so ensure that Government requirements are purchased at the best j>rice obtainable.”