PARLIAMENT.

Press, Volume LXVI, Issue 20038, 20 September 1930, Page 16

PARLIAMENT.

RAILWAY ESTIMATES. COAL CONTRACT CRITICISED. (FBBSS ASSOCIATION tBLBGBAM.) WELLINGTON, September 19. The House of Representatives met at 10.30 o'clock tnis morning. The London and New Zealand Bank Limited Amendment Bill was reported from the Committee of Selection without amendment. Mr P. Fraser gave notice of his intention to introduce the Judicial Proceedings (Regulation of Reports) Bill and the British Nationality and Status of Aliens in New Zealand Amendment Bill. Tho City of Christchurch Electric Power and Loan Empowering Amendment Bill (Mr J. McCombs) was introduced and read a first time. Railway Coal Contracts. Consideration of the estimates of £6,378,003 for the working railways account was resumed in Committee of Supply. Tho Minister said he desired to give the House the facts with reference to Mr J. S. Fletcher's allegation that the Department had not accepted the lowest tender for coal in the Waikato. Mr Veitch stated that one company had offered to supply coal at a certain figure all the year round. The Minister emphasised that the tender at the lower price was for all the year round, and this was not acceptable to the Department. Mr Fletcher read a telegram to the company, which, he said, he had been assurod was the first communication the company had received on the subject. This telegram asked for a tender for the supply of coal requirements for a period of, say, three years. Mr Fletcher declared that there was absolutely no reference to seasonal requirements in the telegram. He challenged the Minister to show that there had been any earlier communication to this company. Mr Veitch read earlier correspondence on the subject to various companies, including the company to which Mr Fletcher had referred. He said it was quite apparent that tho Government's contract had been in the best interests of the country. Mr Fletcher said that, in spite of the Minister's assurance, the facts were that the Pukemiro Coal Company and the Renown Colliery had offered the Government supplies at 19s a ton, whoroas the Government had accepted the tender of the Taupiri Company at 19s 3d. He moved that the estimates be reduced by £9 as an indication that the whole question of the coal contract should be referred to the Railways Committee for investigation. The Minister insisted that Mr Fletcher had misrepresented the position. He agreed to refer the contract to the Committee, and the amend-ient was thereupon lost on the voices. Reduction of Orders. The Leader of the Labour Party (Mr H. E. Holland) again raised objection to reductions of the coal orders. He said the Minister had explained that it was necessary to work down the existing supplies of inferior coal, but, even it' this were necessary, it should have bsen seen that there was danger of creating unemployment. Mr W. E. Parry (Lab., Auckland Central), referring to the Waiknto coal contract, suggested that it would have been wise to spread the order over a number of companies with a view to keeping a greater number of men employed.

Mr J. O'Brien (Lab., Westlnnd) urged that tlio Deoartment should use nothing hut New Zealand conl on thu railways. Mr Veitch • As far a» is* humanly possible, we will. Progress was rfportpd and the House rose nt 12.45 p.m. till 2.30 p.m. on Tuesday next.