Otago contractors fear moves by Ministry

Press, 23 July 1986, Page 4

Otago contractors fear moves by Ministry

PA Dunedin Otago contractors say disastrous effects will follow moves by the Ministry of Works and Development to tender for "outside” Jobs. The chairman of the Otago branch of the Contractors’ Federation, Mr Tas Smith, said the Ministry had unfair advantages and would devastate an already depressed industry. Members of the Otago branch of the Master Builders’ Association are

also worried about the consequences. From April last year to this year the Contractors’ Association workforce fell from 810 to 680 and Mr Smith said it had fallen further. Some of the present Ministry’s privileges were listed as: Sales tax advantages on machinery, cheaper fuel, no tax on profits, and much less accountability for losses. The matter came before a Dunedin City Council committee when con-

tractors learned that a Ministry tender was the lowest for one job and was likely to be awarded the contract. The committee decided to defer decisions on the tender for a month to give parties a chance to present submissions. The job is part of the the city reading network which links with State highway work. It Is paid for by National Roads Board funds, but was delegated to the Dunedin City Council.