LOCAL PREFERENCE

Dominion, Volume 22, Issue 263, 2 August 1929, Page 10

LOCAL PREFERENCE

GOVERNMENT CONTRACTS IRONMASTERS’ PLEA Stating that the desire of the Government was to have as much work done in New Zealand as possible, the Minister of Railways promised sympathetic consideration to a request made to him by a deputation yesterday that be given to New Zealand tenderers for bridge-construction contracts and other Government undertakings. „ n , , The secretary of the New Zealand Ironmasters’ Federation (Mr. T. O. Bishop) drew attention to tenders which had been called recently for railway bridges at Ngaruawahia and Whenuakura, involving 450 tons of steelwork and New Zealand wages—had the manufacturing been done in the Dom-inion-totalling between £4OOO and £5OOO. That work, he said, could be done in New Zealand with imported materials. The big discrepancy in the wages paid for the same work in England and New Zealand was a big handicap to the federation. However, even though the actual cost might be a little more than if the fabrication were done in England, it was desirable that the Railways Department let its tenders in the Dominion, because local employment was provided and relief measures to that extent were spared the Government. Iron manufacturers in this country were faced with the difficulty of keeping their plant in operation and their men employed. The president of the federation (Mr. A. S. Mitchell) pointed out with regard to the competition between the New Zealand manufacturer and the New Zealand tenderer that the time allowed for delivery was often too short to allow the New Zealand manufacturer to obtain his materials and supply in the time specified. In some cases, he said, the conditions of delivery favoured the English manufacturer, the New Zealand manufacturer being required to deliver to the scene of the installation of the work and his English competitor to a port of landing. ' The last-mentioned item, said the Minister in reply, he would bring to the notice of the Public Works Department, as it was a matter that appeared to require a remedy. The Government desired generally to have all work done in New Zealand as far as possible. Regarding the Railways Department the country had a large sum of money invested in railway workships, and they had to be kept going if it were reasonably possible to do so. He was sympathetic with the view the deputation had presented. In the past a comparison had been made between Home and local tenders, and an amount of preference had been given. If the discrepancy in tenders necessitated he was prepared to make a recommendation to Cabinet, but there was a point beyond which it was unwise to go as it was possible ,to pay too much for any preference. There was a point where local tenders supplied were built up in the knowledge of preference to the local article, and the position had to be watched. He was prepared, within proper limits, to make a recommendation to Cabinet giving reasonable preference to the New Zealand manufacturer.