RESULT OF POWER DELAY FEARED

Press, Volume CV, Issue 31041, 22 April 1966, Page 1

RESULT OF POWER DELAY FEARED

‘Demand Would Not Be Met In Early 19705’

(New Zealand Press Association) WELLINGTON, April 21. A delay on the Tongariro power scheme would inevitably result in a situation in the early 1970 s in which the desirable margins for electricity supply to meet unrestricted demand would not be met, the Minister of Electricity (Mr Shand) said today.

Mr Shand was commenting in a statement on the current situation on contracts for the scheme.

“Because of the gen- t eral labour situation ( in New Zealand and the excessive demand ; for workers, the start j of this project was delayed until the latest time at which it was estimated it could be completed in time to ensure an unrestricted supply of electricity in the early 19705,” Mr Shand said. “Delay of even a few! months will result in a periods in which these conditions' cannot be met. “In spite of this difficulty.! as Minister of Electricity, 1 i fully support the decision of |

, the Government that com-1 i mencement of contract work | (and the prosecution of the (Other and larger part of the ; project, which is the direct (responsibility of the Ministry of Works, must be delayed until satisfactory terms of employment can be agreed upon. “The conditions which the Minister of Works insisted must be complied with are generous by any standards and they are the maximum which a responsible governI ment could possibly approve,” 'Mr Shand said. ; Mr Shand said that a few 'days ago, as Minister of Labi our, “I issued a warning that unless the trade union move- ! ment used the great power i which full employment has

(placed in its hands with a I proper sense of responsibility, it would inevitably destroy the very conditions of full employment which have given it this power. “With this in mind I suggest that the trade union movement should reconsider very carefully the attitude which has been adopted recently in respect of electricity construction projects. Borne By Public “The cost of electricity is borne very largely and very directly by the ordinary citizen and it is my responsibility as Minister to see that the cost is not unreasonably inflated. “Mr Skinner (president of the Federation of Labour) has tried to paint the action of the Minister of Works as an unreasonable interference with the right of free negotiation. “No-one knows better than Mr Skinner the ridiculousness of this claim,” Mr Shand said. “Not only would the cost of escalation above the limits laid down fall directly on the Electricity Department, but the effects of permitting a small section of the workers on a particular Government contract to claim wage rates substantially in excess of those applying to the majority, who are members of the New Zealand Workers Union, would inevitably lead to a sense of dissatisfaction. Overseas Labour

“This is particularly pointed when we appreciate that a very high proportion of the workers on these particular contracts will inevitably have to be recruited from overseas, whereas the majority of the other men. in respect of whom the direct responsibility of the Government certainly cannot be challenged, will be for the most part New Zealanders. “The need to recruit overseas for these particular jobs arises from the fact that much of this work is in the specialised field of tunnelling, and there has been such an upsurge in requirements for tunnelling in New Zealand that there are not nearly enough New Zealanders, either experienced in the work or ready and willing to enter this specialised field,” Mr Shand said. “The Federation of Labour has been assured that any increase in Ministry of Works rates to levels above those provided under any agreement negotiated would be

recognised as justification for revising the latter rates for the purpose of maintaining parity. “It is perhaps time that the public knew just how favourable the rates under the present Manapouri agreements are,” Mr Shand said. “By agreement and preference of all concerned a sixday week is worked, with provision for men to take suitable time off at intervals, which gives them an opportunity to get away from the somewhat isolated area where they are working. “In the tunnels the men work shifts of eight hours a day for six days a week. Other staff working on the surface work six days of nine hours, but most of this work is done in daylight hours and is not shift work. “Many at Manapouri at present are working substantial overtime in excess of these hours,” he said. Typical Earnings “Typical weekly earnings for a labourer working on the surface are £3O-£35 a week. A typical tunneller receives £4O- - a week, and a typical tradesman £45-£5O, including overtime.” Mr Shand said. “All workers receive free board and lodging in addition. “These rates include considerable amounts originally conceded because of the special considerations of isolation, wet conditions and lack of amenities at Deep Cove in Doubtful Sound, where accommodation was provided on the ship Wanganella,” said Mr Shand. “These difficult conditions apply to a more limited extent at West Arm, and because the tunnelling contracts at Tongariro will be isolated by from 12-20 miles from the settlement at Turangi, it may be claimed that there is still some element of isolation and discomfort,” Mr Shand said. “It is not the intention of the Government to insist that the rates paid by the contractors on major projects should be exactly the same as those paid to Ministry of Works employees who received certain advantages, including that of a regular ruling rates survey, which do not apply in the case of those employed by contractors. “But it certainly is the intention of the Government that where work of this nature is to be done by contract, the contractors will not be permitted to pay wages far in excess of those ruling throughout the country and charge the extra cost up to the consumers of electricity,” Mr Shand said.

“I can only repeat for the benefit of Mr Skinner, of the executive of the Federation of Labour and of all'the unions directly concerned: the maintenance of full employment and the tremendous rate of development which our country is attempting to achieve require that they exercise the power that full employment has placed in their hands with a proper sense of responsibility, and they should think well how they propose to deal with this situation,” Mr Shand said.