[Lang]

Mike

There is a lot more to that letter than first appears. They don't say colour can not be standard but "quality" with reference to bad service on fibro buildings.

Who was on this deputation - I bet it was the big operators. They are wanting the Paint Manufacturers "union" (Australian Camouflage Paint Committee) to be able to allocate orders to various manufacturers ie amongst themselves, not the Government supply agency, who merely will give them the requirement.

Under today's laws I think the ACCC might be having a close look at corporate collusion and cartel activity. Vehicle paint is just a drop in the bucket, we are talking about millions of gallons for buildings, ships, equipment and structures as well.

The little remark at the end about lowest tenderer is a non-too subtle attempt to allow them to jack up prices.

It is all dressed up in patriotic language but a cynical view might be that the centralization of paint supply in the hands of the suppliers, not the government, may or may not improve quality but it would certainly allow the manufacturers to place huge group orders with component suppliers for better prices ("we are the only show in town now so you must give us a deal because there is nobody else to sell to"). It also would give the cartel the ability to force the little guys to toe the line on selling price or they would not get any orders allocated to them.

They suggested a fixed price. What would that be? Of course it would be the price the expert Paint Manufacturers Association recommended to the government purchasing people, while weeping about cutting cost to the bone.

I can see why the military and government supply people went along with the idea to have the paint manufacturers regulate the whole paint supply business, it made things easier all around. Meanwhile the paint companies' profits climbed. Wars are expensive things.

The letter from the Army to the minister basically, but very politely, said "We don't give a rat's where it comes from so long as it comes and it is the responsibility of the supply chain"

Lang