McKinnon queries work’s cost

Press, 12 October 1988, Page 9

McKinnon queries work’s cost

By

DAVE WILSON

The maintenance safety package on H.M.N.Z.S. Southland may cost more than the price of the cancelled full refit, says the Opposition spokesman on Defence, Mr Don McKinnon. He has weighed into the frigate refit issue in a statement that said there was nothing to indicate the Devonport naval dockyard will be able to do the maintenance package cost-effectively. “In the end, the taxpayer is likely to have to fork out more for the job

than was originally intended,” Mr McKinnon said. Naval sources and the Minister of Defence, Mr Tizard, have responded that it is too early to know exactly how much the maintenance work will cost. The Government has directed the Navy that the cost be less than overseas tenders for the full refit, cancelled in August. Although the tenders were never disclosed, they were believed to be about $35 million to $3B million. Mr McKinnon said Mr

Tizard had been ominously silent on the cost of the modified refit. "The frigate refit programme Is turning out to be as mysterious and confusing as the Government’s many positions on the purchase of new ships from the Australians.” Mr McKinnon said the Government had, at the eleventh hour, backed out of the tenders for the full refit of the ship and for cost reasons directed that a maintenance package be done at Devonport. “This decision was made only days after Defence officials had told

the Defence Select Committee that the refit could not be completed at Devonport. Space at Devonport could only be purchased at very high cost. “Now the Minister assures the public that not only can the refit of the Southland be done at Devonport but that it can be managed in tandem with the refit of the Canterbury, which is already under way.” Mr McKinnon said the steps in the issue did not add up. “First the public are told the work is so critical

it may have to be completed overseas because of the limited technical resources in New Zealand to handle the job. “Now, not only can it be done in New Zealand but it can be managed by the same dockyard as Defence officials asserted to be working at full capacity.” Mr McKinnon’s statement drew a terse, oneparagraph response from Mr Tizard: “Mr McKinnon is trying to find a story and hasn’t found one. Only he is confused.”