M.P. lobbies for frigate contract

Press, 11 July 1988, Page 1

M.P. lobbies for frigate contract

By D

DAVE WILSON

The member of Parliament for Lyttelton, Dr Peter Simpson, says the contract for the refit of H.M.N.Z.S. Southland is important for the? Canterbury economyl- - he conveyed this view to the Minister of. i Defence, Mr Tizard, at the week-end. Dr Simpson was commenting yesterday on a report in “The Press” on Saturday, in which the Navy was believed to favour the $7O million refit contract being awarded to a British firm. Dr Simpson said he was concerned that this might be interpreted as a final decision on the contract. “I want to reiterate the point that the final decision on the refit tender will be a Government decision and I am confident both New Zealand tenders are legitimate, well-researched and adequately founded,” he said.

Sinclair Melbourne, the Lyttel-ton-based engineering firm engaged on the refit of the Navy’s hydrographic survey ship Monowai, and the Wellingtonbased William Cable, Ltd, are vying for the tender. Three British companies are

also bidding for the work and last week Navy and Ministry of Defence officials selected a specific tender for recommendation to the Defence Major Tenders Board.

If the board approves the recommendation it will be passed to the Minister of Defence for formal Government approval.

While the Navy is silent on its preferred contractor, sources have indicated that the military does not believe New Zealand civilian industry is at the stage where it can effectively compete with the British shipyards’ expertise.

Both New Zealand bidders for the refit have indicated the work would be done using port and labour facilities at Lyttelton. Estimates of the refit’s likely cash injection into the Canterbury economy have varied from $3O million to more than $52 million.

Dr Simpson said the Canterbury economy obviously needed the injection of such income. “I am quite confident both New Zealand firms have the capacity to do the work. They have the necessary expertise and the connections with the overseas technical skills to do the work to an appropriate standard,” he said.