Govt. Members Criticise Police Launch “Muddle”

Press, Volume C, Issue 29609, 4 September 1961, Page 9

Govt. Members Criticise Police Launch “Muddle”

“The Press" Special Service

WELLINGTON, September 2.

Government members yesterday criticised the building of the new Auckland police launch Deodar. Mr R. D. Muldoon (Government, Tamaki) said in the House of Representatives that the letting of a tender to a “dummy company” was a serious reflection on the administration of the previous Labour Government.

Mr H. Johnstone (Government, Waipa) said two incompetent Labour Ministers were “in the gun.”

Mr Muldoon suggested the launch be renamed “Deodour.” The contract for its building had been let in August, 10, to Shipwork (New Zealand), Ltd, a firm with a nominal capital of £lO,OOO and a paid-up capital of "not one penny.” The company had no assets, it- had engaged in no maritime construction work, and its only connexion with shipbuilding was its name. The Labour Government

bad let a contract for a price of £14,000, delivered at Auckland. The contract had since been repudiated and the launch was costing £21,000, delivered not at Auckland but at Port Chalmers. Price Too Low "That represents a loss of £7OOO plus delivery costs,” Mr Muldoon declared. "The contract had been immediately sub-let to a Dunedin firm which was to have been paid out of progress payments on the contract. “The price was too low. A reputable Auckland firm, which tendered unsuccessfully, could have built the launch for a little more than £ 1000 more than the ‘ accepted price. Mr Muldoon continued: “Shipwork (New Zealand), Ltd., was a dummy company. Its principal shareholder is bankrupt. “The most the Government can expect to get out of the claim is about 5s in the pound. This is a most remarkable piece of mismanagement by the previous Government. "We have raised the matter in the Public Accounts Committee.’! Mr Muldoon alleged muddlement from start to finish. The company making the successful bid had existed only on paper. The whole project had been investigated inadequately. Results would now cost the taxpayer a further £7OOO. It had turned out to be a "hometown job”—sub-let to a Dunedin firm. “The whole matter smells to high heaven and the name Deodar is very appropriate.” Six Months Late Mr Johnstone said the launch had been delivered ajx>ut six months late. “I take it that the tenders were examined by the Ministfy of Works and by the police. Both former Ministers

(of Works and of Police) are in the gun, but the Ministry of Works is chiefly in the gun. “I would like to ask the last Minister of Works if he looked at the tenders. Where were the supervisors? I am sure the former Minister of Police is not happy that this was named after his old ship.” Public Scandal Mr W. J. Scott (Government, Rodney) said a public scandal had been revealed. “There are at least 12 guilty men on the other side of the House —former Cabinet Ministers who are trying to run away from this matter. "This is something which should be taken further. They went as far as possible from Auckland to find someone to let this contract to.” Mir A. J. Faulkner (Opposition, Roskill): Stop attacking private enterprise. Mr Scott said the successful tenderer had later been proved to have had only £3 2s fid in cash assets. Mr N. E. Kirk (Opposition, Lyttelton): Tell us about Rongotai. Mr Scott produced a Treasury report to the Minister of Finance which described the whole Deodar affair as “unfortunate.*' The Leader of the Opposition (Mir Nash) immediately leaped to his feet to ask that the document be tabled. Mr Scott agreed. £lOOO To Deliver The report said it was now clear that the tender accepted had been the lowest because major items of equipment had been under-estimated and because nothing had been allowed for delivery costs. Mr Scott said the cost of sailing the launch from Port Chalmers to Auckland was £lOOO. “Even then one thing after another went wrong. The Deodar should have been built in Auckland,’* he said.