Risk seen in counterdeals

Press, 2 April 1979, Page 6

Risk seen in counterdeals

PA Wellington Counterdeals for overseas goods could discourage private enterprise investments in New Zealand, says the Institution of Engineers. It asked if future big tenders would be considered on technical and economical grounds or in terms of what produce New Zealand could sell to the prospective suppliers’ Government, said the chairman of the institution’s industries division (Mr B. J. Main). Mr Main was commenting on the recent S33M contract for Wellington suburban train units granted to Hungary. The Prime Minister (Mr Muldoon) had been quoted as saying that the Hungarian Government could buy some produce to offset the sale. Mr Main said the division feared that different equipment might have been ordered if the Rail-

ways Department had made its own decision. The Railways would have made sure the new units would have the most up-todate technology, possibly including stainless steel coaches and energyefficient electrical controls, he said. The institution asked if short-term expediency had overridden those considerations. “The result could be that Wellington is saddled with units of an old-fash-ioned technology basically no better than the existing units,” Mr Main said. If this was a new policy, New Zealand should abandon its pretended allegiance to the Western world’s private enterprise system with free competitive tendering. Mr Main said the institution was delighted that the Wellington City Council had had the courage of its convictions in ordering high-quality trolley buses in spite of pressure from many quarters.