Later, dearer Arahanga

Press, Volume CXI, Issue 32636, 18 June 1971, Page 2

Later, dearer Arahanga

' (New Zealand Press AMSrtation) WELLINGTON, June 17. There was no chance that the new rail ferry Arahanga would be lost to New Zealand or work abandoned on her, said the general manager of New Zealand Railways (Mr I. Thomas) today. \

The British firm building the ship, the Upper Clyde Shipbuilders, is In financial difficulties and a liquidator has been appointed.

There was, however, one thing certain, eaid Mr Thomae. The new ship was going to cost the Government a lot more. The delivery coat of the Arahanga before the trouble at the shipyards developed waa sBm. Under an agreement signed before building started, the New Zealand Government could, if a liquidator waa appointed, step in and take possession of the ship and either have it finished at the yard or take it elsewhere. The Arahanga was to be launched in October and delivered in January. She has no bow section at the moment end only a partially completed item. Many vital pieces have still to be delivered to the yard. Mr Thomas denied a rumour circulating today in shipping circles that he would be leaving this afternoon for Britain to negotiate a new contract for the completion of the ship. “I should imagine that the first thing the liquidator will do is to try and finish the existing contracts,” he said. There were at present 16 or 17 ships on the stocks.

It might be still possible to renegotiate the existing contract, he said.

“But first of all we have to wait and see what the liquidator will do. He will review the situation and see if the contract for the building of the Arahanga can be. carried on, or repudiate it” A committee of three had been appointed to assist the liquidator. "Until we know his plan of action we don’t know what is going to happen,” said Mr Thomas.

Asked how much more the new ship would cost, Mr Thomas said: "I haven't got a clue.”

Delivery of the Arahanga, however, would most likely be set back at least a couple of months. This was most disappointing to the railways as there was not enough space for cargo on the present rail femes, Aramoana and Aranui.

The British Government’s guarantee to pay the wages at the yard expires tomorrow.

R.S.A. affirmation. The Dominion president (Sir Hamilton Mitchell) was re-elected unopposed by the national conference of the New Zealand Returned Servicemen’s Association yesterday; it was his tenth re-election. He received a standing ovation from the 250 delegates after tributes had been paid.