Govt may be prepared to pay board

Press, Volume CXV, Issue 33981, 23 October 1975, Page 18

Govt may be prepared to pay board

I lopes are held that cither the Minister of Trade and Industry (Mr Freer) or the Cabinet will make a quick decision on the dispute that has delayed extensions to the s2'm Bromley sewage treatment plant.

The Christchurch Drainage Board is seeking compensation from the Government because of the delay. Two members of the board met senior officers of the Trade and Industry Department in Wellington yesterday. After the meeting, the chairman of the board (Mr M. R. Carter i said that he hoped the decision would be made soon. The board members and representatives of 1.C.1. Australia supplied technical information at the meeting, in addition to the submissions that the board had made to the department twice before. It backed these with written submissions supplied to the department about two months ago The claims stem from the hoard's plans to increase the capacity of the works bv

capacity ot tne wonts ov building two filter towers. The department granted the import licences needed to obtai.. the two types of p.v.c. material used in the filters, and some of this material was imported from Britain through the major supplier — 1.C.1. Australia Petrochemicals, Ltd. The Government later withdrew the licence for one of the materials when it was

■found that it could be made in New Zealand, but the delay is said to have cost the board between $450,000 and $470,000 There have been ■ two devaluations, totalling 25 per cent, since the contract was let, together with other currency movements, and inflation. A recent telegram from Mr Freer said that the Government had approved in principle negotiations with 1.C.1. Australia to find an equitable level of reimbursement. The board had interpreted this as a sign that the Government was asking the board to get 1.C.1. Australia to supply the! ( raw materials for the New f Zealand manufacturer. ?