Owing to the absence of the Minister for Local Government and Public Health, who is unfortunately ill, I move the Second Reading of this Bill. It seeks to place on a statutory basis an institution which was brought into existence for the first time towards the end of 1921, and which has since been functioning under some little difficulty. In the Second Dáil I was able to explain what an improvement had been effected in prices by reason of combined purchasing. I think some Deputies are aware of the fact that since this Department came into existence a number of articles not formerly produced in the Saorstát have been manufactured in it. One of the difficulties that beset this department in the beginning was the extraordinary diversity in the number of articles of much the same kind used in the various institutions in the country.
To those who have had some experience of what may be called local politics within the last twenty years one particular claim was made, that standard articles should be adopted for use in the various institutions. After some conferences with local authorities a list of standard articles was drawn up, and in consequence it will be conceded that the prices of these standard articles, by reason of being able to buy in bulk, would be fairly considerably reduced. Very considerable reductions in prices have taken place as a result of combined purchasing. As I said already, a number of articles that were not formerly manufactured in the Saorstát are now being manufactured in it, and a trade for some of these articles has also been opened up in other directions. Local authorities purchased a certain quantity of these articles and that has enabled the manufacturers to place goods in markets which otherwise might never have been thought of.
In addition to the standardising of particular articles for institutions, there has been a considerable reduction in prices of goods which came from outside the Saorstát. In one particular case the price list was furnished and the customary method of tendering was to give a percentage off the published price. When I was Minister for Local Government I remember seeing the various percentages which, on the average, amounted to 17 per cent. off the list price. The Trade Section of the Local Government Board increased the percentages from 17 per cent. to 25 per cent. generally over the country, and in the case of Dublin and Cork it was 28 per cent. of a reduction off the list price. Articles which had formerly been purchased by local authorities were of an inferior quality and I am quite sure some of the articles purchased by the Department will probably suffer from the same charge, but they can be corrected. There have been cases in which articles were not up to the standard, but through the co-operation of local authorities that can certainly be corrected. I can understand that, given a number of articles purchased by local authorities, separately and independently, they would suffer perhaps from the very same fault. That fault was not usually discovered with the same alacrity or industry as the faults alleged in the case of the Trade Department. In other words, there is no interest in preserving the integrity of the Trade Department, as it is there for analysis and criticism. Any one who has experience of local authorities knows quite well that there are many reasons why no such allegations and no such analysis are made in the case of purchases made by themselves.
In addition to the work this particular section has done for Local Government, it has also been brought into play for some of the Government services and, as a set-off, satisfactory prices were obtained whenever their services were requisitioned.
It was put to me when I was through the country recently that there is a discrimination in favour of Dublin by this Department. I have examined the list of places where contracts have been placed.