Condemnation Of British Practice Of Pooling Tenders

Wanganui Chronicle, 8 September 1950, Page 8

Condemnation Of British Practice Of Pooling Tenders

WELLINGTON, Sept. (O.C.).—The New Zealand Government is disturbed at the practice of British firms who have been pooling their tenders for supplies required by the Dominion. The Prime Minister (Mr. Holland) told the United Kingdom Manufacturers and New Zealand Representative Association at ils annual meeting today that in cases where the Government had called tenders in Britain for machinery hydro-electric equipment and other essential goods of that kind it had been found that several tenders were entered at exactly the same price. In one case, 11 manufacturers all put in the same price. In other cases, 14, 13, 10 and five tenders were all at the same figure.

"This system of pooling tenders, which is growing up in Britain, is going to be of great, disadavantage to Britain herself. When we call tenders to stimulate competition they get round a table and decide the prices. This practice denied New Zealand the right of choice and restricted the factor of competition in promoting efficiency in industry. He believed in the competitive tender system where competitors were free to give the best service and were given a stimulus to do so, but under this practice of grouping tenders the whole tendering system would fall down. “We are giving very serious thought to this matter, said Mr. Holland, “and representations will be made to the proper quarters at a high level. I think some alternative will have to be found.”