THE DEFENCE SCHEME.

Evening Post, Volume LXXXII, Issue 24, 28 July 1911, Page 4

THE DEFENCE SCHEME.

THE AMMUNITION CONTRACT RENEWED AND EXTENDED. An exceedingly interesting paper was laid on the table of the House ot Representatives yesterday in the shape of the ammunition contract entered into between the Government and the Colonial Ammunition Company. It will be remembered that some five years ago a contract was arranged whereby the company waa to supply the Government with small arms ammunition for five years, the Government having the right of renewal for a further term of five years. The new a-greement, which is dated 31st December last, prtesente some new and interesting features. Among other things it provides, that the company shall not be bound to maintain a monthly supply of more than 684,000 rounds of .303 service ball ammunition and 75,000 rounds of .303 blank cartridge, and the payment shall be equal to the current War Office cost, increased by a sum at the Tate < of £17 10s per cent, to cover freight, insurance, wharfage, and general delivery charges in New Zealand, with a minimum price of £S 10s 6d per 1000 rounds for ball cartridge. and f proportionately for blank. The minimum quantity to be bought each year of the contract is 4,300,000 rounds of ball and 250,000 rounds of blank cartridge. Eighteen months' notice • shall be given by the Government in the event of any intention to change the calibre, while tho company is to be supplied with all necessary explosives at actual coet to the Government delivered at the Mount Eden magazine, Auckland. The company, under the contract, undertakes to maintain a plant and machinery sufficient to manufacture 7,000,000 rounds of ammunition per annum. A clause of the contract having especial significance is one which sets forth that, upon giving six months' notice to the company, the Governor may at any time during the term of the contract purchase ac a going concern the whole of the works, plant, and stock in trade of the company in New Zealand, including goodwill, and also the company's estate and interest in the land on which the factory or works are erected, at a fair value, to be ascertained by arbitration under the provisions of the Arbitration Act, 1908. For the purposes of valuation the Governor and company sluill each be represented by an arbitrator, with an umpire mutually agreed upon. j The contract goes on to say that, if possible and permissible, the company will be given preference in entering into a new contract at or before the expiry of the term of the contract, which is to stand for five years from Ist January, 1011.