CONTRACTS LET IN CONTINENT

Press, Volume XC, Issue 27463, 24 September 1954, Page 8

CONTRACTS LET IN CONTINENT

N.Z. CRITICISED BY BRITISH FIRMS (Special Correspondent N.Z.P.A.) LONDON, Sept. 2t. British manufacturers of electrical equipment are reported to have become increasingly concerned about the number of contracts placed by the New Zealand Government with Continental countries. During the last three years, tenders by British firms have been passed over in favour of those from manufacturers in Switzerland, Sweden, Western Germany, Austria and Italy. It is admitted that the prices quoted by the Continental firms are considerably lower than those in Britain, and vary between 20 to 30 per cent, less, even after customs duty has been paid in New Zealand. It is also agreed that until comparatively recently the delivery of equipment to the Dominion has also been quicker from the Continent, but it is now claimed that the rate of delivery from Britain has been greatly improved. Orders placed on the Continent instead of Britain since 1951 are believed to be well over £1,000,000. British manufacturers claim that while price controls may operate on the export of equipment from the United Kingdom, prices are not excessive.

British firms say there is rio doubt that their prices are . being undercut by Continental companies receiving subsidies from their governments in order to help them secure contracts abroad. The British Government has complained of this practice on more than one occasion, and in the case of Western Germany it has been agreed that it is to end next year. The loss of business by Britain in the New Zealand market is said to be regarded gravely.