CPD blames consultants for low level of NZ stake

Press, 1 September 1982, Page 22

CPD blames consultants for low level of NZ stake

PA Wellington The chairman of Cable Price Downer yesterday blamed consultants for the low level of participation by New Zealand companies in the construction of Think Big projects. Mr R. W. Steele said at the company’s annual meeting here that he believed the consultants were preparing specifications and calling for bids on the basis of their experience with large northern hemisphere engineering and metal-working firms (not smaller scale New Zealand companies). He added that they had paid “lip service” only to the Government’s expressed wish to see maximum New Zealand participation in building the projects. New Zealand companies had been given some contracts for civil engineering jobs and electrical equipment.

But they had not won contracts to build the plants or parts of them. Such contracts “are significantly absent."

Discussing the Budget. Mr Steele said that the shortening of time for payment of sales tax would cause some loss of liquidity.

And the new sales tax regulations would result in inevitable increases in retail prices. Mr Steele said that the intervention proposed on lump-sum superannuation funds in the Budget, was serious.

“It upsets the retirement plans, not only of our own employees, but thousands of other people." He said that his company and the trustees would make submissions in detail on the proposed measure. CPD has been registered in Australia in order to explore the market in readiness for CER. but would move with caution.

Discussing present trading, Mr Steele said that the postBudget market was quieter, but sales had continued at reasonable levels.

CPD was “quietly optimistic" about the immediate future, he said.