CONTRACT WORKS IN NEW SOUTH WALES

Dominion, Volume 10, Issue 3068, 2 May 1917, Page 5

CONTRACT WORKS IN NEW SOUTH WALES

NORTON GRIFFITHS UNDERTAKINGS CANCELLED. ' . Sydney, May I.* It is officially announced that' the State Government's contract with the Norton Griffiths Company has been cancelled! on terms: satisfactory to both, parties. The Government's reason for seeking release from contracts/ involving neyer.il millions were- the difficulties arising owing to the war in obtaining plant and material, and tho necessary labour. The cancellation means the stoppage of a number of important public works. Many employees will be thrown out of. work.—Press. Association. • .■'•.,' ■ .;., '•:,'." , ' [The works .'referred to.'- are the! Macksville-Raleigli, Coff's. Harbour* Gleureagh, ' Glerireach-Dorrigo; and Binnaway-Werris Creek railway sections. Four thousand men and their dependants will bo affected" by the decision. In discussing the general con-, duct of tho contract by the Government, Mr. Mayoh, general manager ot Norton Griffiths and Co. in Australia, when the request was made to close down on the works, said: "As Mr. Holman pointed out in the Press last February, the Government has already profited from the contract a good deal more than the firm. Those are the Premier's own words. The Government, he said, in February, had received all the advantages stipulated for; the guarantee of money had been carried out by the firm and £6,000,000 obtained by the Government. Wβ found that money, ■under a contract that we were to supervise the spending of £2,000,000 afc 5 ner cent.—a commission or iiUU.uw a yea'- a year and : three-quarters we have, received only about £60,000. I liave already stated in print that the company would not press the Government for full performance, but wouW te satisfied with the work progressing Sit promised the,«*; lv tho company iteolf ■ financed tn* enterprise™ W of U.works named in the agreement, we received 11; these are now cut down practically to three, and on tho other eight we lose of must leave suspended, the capital ware not being closed! down. In fact. +l,piv contracts are borne kept-going. SS fte money wo provided wbe Wβ omselves are told x<,.call a halt. ]