asked the Minister for Finance if any general Government policy has been laid down regarding the purchase by State Departments and semi-State bodies of their requirements from private suppliers; if so, what it is; and if any particular steps are taken to prevent a monopoly in the supply of a commodity from private suppliers.
Ceisteanna—Questions Oral Answers. - State Purchasing Policy.
52.
It is the policy of State Departments and semi-State bodies to purchase their requirements on a competitive basis, and to ensure that no supplier has a monopoly in the supply of any commodity.
The Fair Trade Commission is empowered to investigate complaints of unfair trading in the supply and distribution of any kind of goods and to recommend appropriate measures for the elimination of restrictive practices which it considers to be unfair or contrary to the public interest.
Could the Minister say why a State Department cannot buy all their petrol from three or four companies rather than from one company? I do not understand that. Private business people have a sort of solo agreement. Why cannot a State Department, which buys a tremendous amount of oil, buy from three companies rather than from one, giving that particular company a monopoly?
I do not really understand what the Deputy is talking about. An oil company at the moment has a contract for the supply of oil to Government Departments. Different oil companies have contracts for the supply of oil to different State bodies.
I am sorry; the Minister misunderstood me. If a State Department buys from one company, which signed a contract to supply oil at 2d a gallon less or something like that, why not buy from three companies? Why not get three of them to supply and then a strike would never affect you?
I do not think the Deputy understands. The Office of Public Works goes out from time to time and invites tenders for the supply of petrol and oil. At present a particular company, which won the tender on the basis of competitive offer, have the contract. There is no guarantee they will get it next time.
I am not intimating that at all. What I am asking is why cannot a State company, which buys a tremendous amount of oil and petrol, get a price and the three companies would supply at the same price?
(Cavan): The Deputy is suggesting that you should not put all your eggs in the one basket.
Different State companies buy from different companies. If they were all buying from one company that would be different.
Is it not a fact that, in the matter of tenders, the Board of Works buy from one company under contract until the contract expires?
Yes, on the basis of competitive tender. But before Deputy Belton gets too worked up about this I recommend that he should read a book on oil called "Oil — the Biggest Business". He will get an eye-opener about all these things. I will send it to the Deputy.
He might get well oiled then.