COTTON MILL “CONTRACT VAGUE”
Constitutional Soc.’s View (N.Z. Press Association) AUCKLAND. Nov. 2. Talk of compensation of about £ 1,000.000 if the Nelson cotton mill did not proceed was both premature and excessive, the Constitutional Society said today. The society had obtained a report from Nelson about the progress of the mill, said its chief executive officer, Mr A. F. Manning. This showed that only the foundations of the mill were nearing completion. “From this report, it appears totally impossible for the company to carry out its obligation under the contract to start production during 1961,” Mr Manning said. “Yet the Minister indicated that compensation if the Government broke the contract could amount to £1,000,000, which is clearly absurd at the present stage.” The society had taken the advice of eminent counsel on the terms of the contract and he had reported that it was “disgracefully vague” on essential points. It was remarkable that neither party had apparently thought it necessary to put the contract into proper legal form. It was conspicuously lacking in safeguards and could be the subject of endless argument in interpretation, Mr Manning said.
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Press, Volume C, Issue 29662, 4 November 1961, Page 13
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187COTTON MILL “CONTRACT VAGUE” Press, Volume C, Issue 29662, 4 November 1961, Page 13
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