DEPOSITS WITH TENDERS

Taranaki Daily News, 3 October 1930, Page 3

DEPOSITS WITH TENDERS

MONEY HELD FOR LONG PERIODS. NEW PROCEDURE RECOMMENDED. When deposits are required to accompany tenders, on certain occasions the money is held for some considerable time, before the tenders are dealt with. When these deposit cheques have been banked, overdraft interest against the tenderer is incurred. The question came up at a meeting of the Wellington Chamber of Commerce, when a report from the importers’- and exporters’ committe’e was adopted. It was stated that occasionally complaint yas received that the Government was sO holding deposit moneys for prolonged periods, but this appeared to be infrequent. However, with local bodies, particularly electric power boards, it seemed that it was not unusual for the consideration of tenders ‘to be belated, and those local \ authorities would then be holding thousands of pounds of tenderers’ moneys, and inquiries should be made as to the use. that was being made of these receipts. “Inquiries are recommended to bemade,” stated the report, “to see whether some practice‘might be adopted whereby deposit cheques may be appropriated' at some time closer to the date when tenders are being dealt with. If this procedure were -•adopted, the question of interest would become practically negligible. : “It is to, be mentioned that with some contracts the, practice is to hold the cheques until the tenders are dealt with. The cheque of the approved terndeter is then banked, and upon its being met the- bther cheques that have aceom--panied tenders are returned, and advice circulated of decision in regard to the awarding/of the contract. The adoption of this or somewhat similar procedure would obviate disability.”