Shortage of material closes factory

Press, Volume CXV, Issue 33966, 6 October 1975, Page 7

Shortage of material closes factory

A small factory i assembling filter modules for the Bromley sewerage works has closed! temporarily because of a dispute between the Christchurch Drainage Board and the Depart-' ment of Trade and Industry about the supply of materials. The factory, owned by i P.D.L. Plastics, Ltd, em-' ployed 10 men, who are nowj working for the company elsewhere. The closing has caused little concern to the managing director (Mr R. H. Stewart), because the work would eventually have to be done, he said. P.D.L. was under subcontract to 1.C.1. Australia) Petrochemicals, Ltd, to I assemble the modules and) erect the filter towers. 1.C.1.) was the main contractor, and! supply of materials was its l

I problem and not that of P.D.L. Plastics, said Mr ! Stewart. The contract wqs worth $360,000 to P.D.L. The original sub-contract for the manufacture of the material was let in Britain. But an import licence for it was cancelled on the Government’s decision that it could be made in New Zealand. Much of the material has been made in Britain, and awaits shipment—but | the Government wants to buy from an Auckland firm. i Supplf of materials has been held up by a dispute about who should pay for the material already made in Britain. The chairman of the Drainage Board’s construction and treatment works committee (Mr C. H. Russell) expects no decision from the Government until October 13. On this date, a paper on the ;case, prepared by the Treasury, would be presented to the Cabinet for a decision, he said.