VARYING CONTRACTS

Dominion, Volume 29, Issue 254, 23 July 1936, Page 10

VARYING CONTRACTS

Right of Application to Courts

PAYMENT OF EXTRA COSTS

Provision for the variation or rescission of contracts for works where the cost of carrying out the works has been increased by reason of alterations in the law is made in the Finance Bill which was introduced in the House of Representatives yesterday by Governor-General’s message. This is to apply to all contracts for works made before the passing of the legislation. If no provision has been made for the variation of a contract in the event of additional cost arising from alterations to the law and the parties do not mutually agree to variation, either party may apply to a magistrate for the rescission or variation of the contract. The magistrate will have power to rescind the contract or to vary it so as to provide that any additional cost will be borne wholly by the principal or apportioned between the principal and the contractor as the magistrate considers equitable. There is power for the Crown, a local authority or public body to agree to the variation or rescission of a contract to which it is a principal. There is the right of appeal to the Supreme Court from the decision of a magistrate regarding the variation or rescission of contracts exceeding £lOOO. In all other cases the decision of the magistrate will be final. Costs will not be charged unless the magistrate or the Supreme Court holds that the conduct of any party to the contract In question lias been vexatious or frivolous. PUBLIC SERVICE Two Commissioners to be Appointed

The appointment of two Public Service Commissioners to hold office jointly is authorised in the Finance Bill, which was introduced in the House of Representatives yesterday by GovernorGeneral’s message. The office of Public Service Commissioner has been vacant since the retirement of Mr. P. D. N. Versehaffelt a year ago. The Bill provides that joint commissioners may be appointed for a term not exceeding three years and shall be eligible for reappointment. The salary of each commissioner is fixed at £1250 a year. Where there are two commissioners in office and they differ on any question under their jurisdiction, some other person may be appointed by Order-in-Council to settle the question In dispute. The Independent settlement is to be regarded as final. EXPORT TAX ON GOLD Reference to the export tax of 12/6 an ounce on gold was made in the House of Representatives yesterday by Mr. W. A. Bodkin (Opposition, Central Otago), who gave notice to ask the Minister of Finance, Hon. W. Nash, whether he had yet reached any decision regarding removal of the tax. Mr. Bodkin stated that the tax was operating harshly on small producers, who had to pay the tax on alluvial gold as it came from the mine, while the large producers could have the impurities removed by assay and pay the tax only on the pure gold.