CONTRACT LET.

Auckland Star, Volume LXVIII, Issue 263, 5 November 1937, Page 16

CONTRACT LET.

MORE STATE HOUSES. "PANDERING TO FRIENDS." BUILDERS' ALLEGATIONS. (By Telegraph.—Press Association.) WELLINGTON", Thursday. The announcement that a further contract for State houses at Johnsonville had been let to the Union Construction Company was referred to tonight tn a statement issi&d l>y the Builders' Association. "This block of 20 houses," says the statement, "has not l»een submitted for public tenders, but has been allotted direct to a company which was formed with a contribution of trades union funds and which has a trades union secretary. It is submitted that never lias A. worse case of pandering to political supporter* been exhibited in New Zealand. Public money is being given to this company for work obtained at a price which is not known to the public and without any competition. It is | understood that a total of more than 30 houses is being erected at .lohnsonville I awl that only ttvc were tendered for in I open competition.

"First we have a big firm advertising in England and Scotland for men for New Zealand housing before tenders had ever been invited for any of the jobs. Then we had the State erecting a joinery factory, with public money and leasing it to a private firm -for private profit. Then we had a deliberate shutting out of all effective competition for contracts from legitimate cottage builders by the cond'tions under which tenders were called and the huge amounts of capital needed.

"N'ow we have the Government handing out groups of 20 houses to its political friends without eoni|>etition. Is there any wonder that jieople refer to housing scandals?"