Penalty On Waggon Delivery Disputed

Press, Volume CI, Issue 29956, 18 October 1962, Page 19

Penalty On Waggon Delivery Disputed

(Special Correspondent

LONDON, October 18. "We are not ae mach worried about the money, bat I am not going to have th? reputation of my company besmirched.” said Mr Dunean Bailey, director and former chair* man of Charles Roberts and Company, commenting oa the £25.000 loss resultinf from the delivery date penalty clause enforced by New Zealand Railways. Mr Bailey said the trouble arose through the waggon design which New Zealand had supplied. His firm had pointed out that there would be trouble with distortion and that this would lead to delays. but New Zealand would not listen. Now an order for 200 waggons of an altered design had been sent to Belgrade in exchange for foodstuffs, he claimed. “They talk about the Common Market and want us to give them preferential terms yet why do they want to go

behind the Iron Curtain?” Mr Bailey asked. In Wellington, the Minister pf Railways (Mr McAlpine) commented that full specifications were supplied to •11 .interested parties, says a 1 Press Association message. Special attention had been; called to the fact that the waggon bodies were of an entirely new design in welded steel. Minor Design Changes .Mr McAlpine said the design of the 200 waggons ordered from Jugoslavia was substantially the same as that of the waggons built by Charles Roberts and Company. There were only minor changes. Negotiations with Jugoslavia had begun months ago when New Zealand had serious balance of payment problems and was facing a saturated London market for tem< 'perate zone foodstuffs, i The Jugoslav tender had been favourable and had: . been awarded in the hopel that Belgrade would take fur- ■ ther interest in the purchase: of New Zealand produce. “Mr Bailey has expressed concern about the reputation of his company, but I must point out that publicity regarding the penalty has been initiated by Mr Bailey himself. I am motivated by two main desires: “To preserve New Zealand’s interests to the great- : est possible extent, and to both save overseas funds and ibuy to the best advantage of | the railways,” he said.