COAL CONTRACTS.

Press, Volume LXVI, Issue 20037, 19 September 1930, Page 16

COAL CONTRACTS.

GOVERNMENT CRITICISED. [THE PRESS Special Service] WELLINGTON, September 18. The method followed by the Railway Department in calling for tenders for coal were severely criticised by Mr J. S Fletcher (Ind., Grey Lynn) during the debate on the Railways Statement in the House of Representatives to-day. Mr Fletcher said over £200,000 worth of coal was involved in coal contracts. Ho outlined the method by which a recent contract for the supply of Waikato coal had been entered into. An urgent telegram, reading as follows, was sent to several companies on August 15th: "Are you prepared quote for contract your company supply wholo 'of our requirements Waikato coal up to 1500 tons per week for period say three years? 'lf so, please quote price. Reply to-day certain." "On specifications such as that the companies were asked to quote for over £200,000 worth of goods," said Mr Fletcher. "In those specifications, if one can call theni such, "there is not one word about seasonal supplies, yet tho Controller of Stores says later that tho accepted tender ■' was for seasonal supplies. Why were tho other companies not told of that factl Thcrtf is something not open and above board in this way of doing business. There can be no explanation which can be satisfactory to me. More than that, the Department has paid 19s 3d a ton, when it had two offers, one of 700 tons, and one of 750 tons, at 19s, yet the tender of 19s 3d a ton is accepted, and the Taupiri Company, which got the contract, is not supplying all the coal. Some is coming froni the Glen Afton mines, and those who remember the recent discussion in the • House about the lease of the Macdonald State mine to Glen Afton are wondering what all this "means." The Minister for Railways (the Hon, \V. A. Veitch): That's the stuff 1 Mr Fletcher: Yes; and if the Minister can explain it away he has something ahead of >him. Why should the contract be fixed up for three years? Mr Veitch: It is for two years. Mr Fletcher: Well, why were tenders called for, three years? Mr Veitch: I am not under crossexamination. • Mr Fletcher: Other people were not given the opportunity to tender for seasonal supplies. Mr Vojtch:' There were letters before the telegram. » Mr Fletcher: This is the only communication with regard to this particular contract. I will be very interested in the explanation as to how this company got.the contract. Of eoiysc, if the Minister has a satisfactory explanation I will accept it, but I am going to bo hard to convince that this is a good way to do business.