WAGES AND LIENS

Dominion, Volume 23, Issue 218, 11 June 1930, Page 13

WAGES AND LIENS

PROTECTION OF SUPPLIERS AMENDMENTS SOUGHT Various interested persons are taking steps to promote amendments to the Wages Protection and Contractors Liens Act, 1908. with the object of giving to suppliers of material such protection as they have understood themselves to possess in the past. Recently the legislation committee of the Wellington Chamber of Commerce was asked to bring down a report on the subject. This was done at a meeting of the council last evening. The report stated that it had in the past been generally understood that merchants supplying goods to contractors and sub-contractors for the erection of a building could secure protection ot the credit so given, provided a lien were established within 30 days after the last delivery of goods. In a recent case it had been held that in order that these liens might be effective, they must be established within 30 days after each specific delivery of goods, unless goods were supplied under a definite continuing contract for all supplies required for a particular building. When a contract was let for a building it frequently happened that the builder and/or electricians, plumbers, etc., subsidiary to him, did not enter into .specific contracts for the materials required by them for their work on the building, but obtained their requirements from day to day from other merchants. These merchants had in the past been influenced in the granting of credit to the contractor and sub-contractor by the belief that they could within 30 days after the last delivery of goods, have recourse against any moneys remaining unpaid under the contract agreement. As a result of the decision referred to above, the report proceeded,, the only apparent way in which protection could now be obtained by a merchant was for him to enter into a carefully-worded contract with the contractor or sub-contractor, and as the contractor and sub-contractor usually desired to retain freedom of purchase, the practical difficulties attendant on that course were very considerable, and would moreover probably lead to a considerable amount of friction and illfeeling between the merchant ana contractor. It was felt that the decision would have the effect of restricting credit and limiting severely the number of those tradesmen who otherwise would be enabled to tender for work. ... . A member stated that since the report had been compiled the Minister of Labour had promised a deputation to refer the question to the Grown Law Office, and if approved, an amendment would be submitted to Parliament this session.