Bill 'will give unfair edge to Ministry’

Press, 22 December 1986, Page 10

Bill 'will give unfair edge to Ministry’

PA Wellington The Public Works Amendment Bill will give an unfair competitive advantage to the Ministry of Works and Development, says the Electrical Contractors’ Federation. The bill, now before a select committee, contains a clause which would give the Ministry the unrestricted right to compete with the private sector and other Government departments for work. The federation’s president, Mr John Howarth, said yesterday electrical contracting was already a

competitive industry and the public would not gain by the Ministry’s entry into the market. “We are not afraid of competition, but we do object strongly when a body built up on taxpayers’ funds is allowed to compete from a position of unfair advantage,” he said.

The draft legislation gave the Ministry the best of both worlds, he said. “They will have the ability to compete for contract work with the private sector but are still able to benefit from the protection given them as a State organisation. They are insulated from the risks of an economic downturn or of performance.”

The bill did not remove Crown immunity from prosecution for Ministry trading activities nor ac-

cepted any liability like that of the private sector. “The State-owned Enterprises Bill recognises the need for State trading entities to compete from a position of neutrality. This bill appears to have only one purpose — to permit and encourage the Ministry to compete in the private sector,” said Mr Howarth.

“There is no requirement that the M.W.D pay tax as any other trading entity is required to do, nor to pay dividends. The Ministry’s Commissioner of Works, Mr Graeme Shadwell, said last evening he did not want to react to the many criticisms made by the federation. He said if Mr Howarth went to see him he would be willing to respond to every point.