XN000022-1982-06-20 — Page 4

SUNDAY, JUN” PC.

THE REVERSAL FROM OVERSEAS TO LOCAL SOURCES OF SUPPLIES WAS ILLUSTRATED BY THE FACT THAT OF THE $20.54 MILLION IN PURCHASES MADE IN 1946/47, ONLY 40 PER CENT IN VALUE OF THE CONTRACTS WERE PLACED WITH LOCAL SUPPLIERS. BY 1981/82, HOWEVER, 80 PER CENT OF THE $1.88 BILLION IN TOTAL PURCHASES WERE MADE THROUGH LOCAL SUPPLIERS. THE AMOUNT INCLUDED 156 MILLION DOLLARS OF CHINESE GOODS.

DIRECT

THE STEADY DECREASE IN COMMISSIONS PAID TO CROWN AGENTS DROPPED EVEN FURTHER IN 1981/82 BY DIRECT BUYING OVERSEAS. PURCHASE FROM FOREIGN MANUFACTURERS AND SUPPLIERS AMOUNTED TO $99 MILLION, WHICH SAVED $5.2 MILLION IN AGENT COMMISSION.

PURCHASES THROUGH CROWN AGENTS IN 1980/81 AMOUNTED TO $80 MILLION, FOR WHICH FOUR MILLION DOLLARS WERE PAID TO CROWN AGENTS AS CHARGES AND COMMISSIONS.

ASIDE FROM GOVERNMENT DEPARTMENTS, CHARITABLE ORGANISATIONS ALSO BENEFIT FROM GSD'S PURCHASING PRACTICE IN BUYING NECESSARY STOCKS IN BULK AND OFTEN AT THE LOWEST POSSIBLE PRICE. THE STOCKS, A MAJOR PART OF THEM CONSISTED OF MEDICINE, WERE THEN RESOLD TO APPROVED CHARITIES AT COST, WHICH AMOUNTED TO $9.19 MILLION IN 1980/81.

GSD BECAME AN INDEPENDENT DEPARTMENT IN 1941 BUT ITS WORK WAS QUICKLY INTERRUPTED BY THE JAPANESE INVASION IN WORLD WAR 11.

IT WAS MOST OF ITS PRE-WAR RECORDS WERE ALSO DESTROYED. RE-ESTABLISHED AS THE GOVERNMENT STORES DEPARTMENT IN 1946 AND AS ITS NAME INDICATES, ITS ROLE THEN WAS MAINLY THAT OF BASIC STOCK-KEEPING.

BUT OTHER RESPONSIBILITIES WERE ADDED ON TO IT OVER THE YEARS, AND THE INCREASING COMPLEXITY OF THE PURCHASES HAVE MADE IT INTO A HIGHLY ORGANISED DEPARTMENT FOR THE PROCUREMENT, STORAGE AND DISTRIBUTION OF SUPPLIES REQUIRED BY THE GOVERNMENT AND CERTAIN SUBVENTED ORGANISATIONS. ITS ACTIVITIES ARE NOW DIVIDED INTO FOUR MAIN CATEGORIES, INCLUDING: STORAGE AND DISTRIBUTION, PROCUREMENT, PROVISION AND INSPECTION, AND ADMINISTRATION. LATTER COMPRISED A DATA PROCESSING UNIT THAT RUNS A COMPUTERISED INVENTORY CONTROL SYSTEM, A SUPPLIES SURVEY AND STOCK VERIFICATION UNIT, A STAFF TRAINING UNIT AND GENERAL ADMINISTRATION AND ACCOUNTS.

THE

ITS STAFF OF 770 TRAINED PERSONNEL ARE DISTRIBUTED AMONG ITS FIVE DEPOTS, WHICH INCLUDE 11 GODOWNS THAT PROVIDE A TOTAL OF 69 600 SQUARE METRES IN COVERED AND OPEN STORAGE SPACE. THIS CAPACITY, HOWEVER, IS EXPECTED TO BE EXPANDED WITHIN THE NEXT FIVE YEARS UNDER A REDEVELOPMENT AND REGIONALISATION PLAN THAT MAY SEE THE RELOCATION OF SOME DEPOTS AND ESTABLISHMENT OF NEW ONES.

IT MAY ALSO INVOLVE THE REMOVAL OF ITS HEADQUARTERS FROM ITS PRESENT SITE IN NORTH POINT WHICH HAS BECOME TOO VALUABLE COMMERCIALLY FOR STORAGE USE. IN ADDITION TO THE ADMINISTRATION OFFICES. THE HEADQUARTERS SITE ALSO SERVES AS ONE OF THE DEPARTMENT'S MAIN DEPOTS.

MR XILVERT SAID THAT MORE DEPOTS. POSSIBLY SMALLER THAN THE CURRENT ONES, WILL BE SET UP IN CAREFULLY SELECTED SITES ON BOTH SIDES OF THE HARBOUR.

FJ

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