LOCAL INDUSTRY

Evening Post, Volume CXII, Issue 1, 1 July 1926, Page 10

LOCAL INDUSTRY

COMPETITION FOR RAILWAY JOBS

IRON TRADES REQUEST

PRIME MINISTER SUGGESTS

AMALGAMATION,

A deputation representative of the builders and ironmasters of Dunedin, the New Zealand Employers' Federation, and the employees in tho engineering and carpentering trades of the Dominion waited on tho Right Hon. J. G. Coates (Prime Minister and Minister of Railways) to-day to urge that separate tenders instead of combined should be called for the supply of steel girders, etc., for tho erection of Addington and Hillside railway workshops. The specifications at present provide that separate tenders will not be considered, but the deputation contended that if this clause was altered in the. direction desired an opportunity would be given to several Dunedin engineering firms to tender, thus stimulating trade which at present wis slack. Mr. ■ Coates suggested that firms interested should amalgamate in tho matter of tendering. The deputation was introduced by Mr. T. K. Sidoy, M.P., who said that Dunedin was the home of the iron industry in New Zealand, and that there was a good deal of feeling over the mattor. Mr. H. L. Tapley, M.P., Mayor of Dunedin, stated that tho Railway Department would probably stultify itself in the matter of getting competitive tenders by the clause in the specifications providing that only combined tenders would be received. If tho tenders were separated a number of the smaller firms would be able to tender, but as the specifications stood it was feared that tho contract for the work would go to firms outside of tho Dominion. Tho stool girders, for which ■ some 7000 tons of steel were required, could bo made in Dunedin, and thus help to meet tho unemployment situation in tho iron industry. Furthermore, local industries would be given the chance of preference being accorded them.

"A SPORTING CHANCE."

On behalf of tho Dunedin master builders, Mr. J. Y. Lovo said that rathor than ask for direct preference for the local industries, they merely wanted a sporting chance "to have a fly" in tendering. "If the other fellow beats us,'' ho said,'' then good luck to him. AYe don't want the Government to give away one penny on this job, but,we want to bo able to tender on the most favourable conditions.'-' If the tenders were separated there would be at least four firms in Dunedin who would tender for Hillside. There need .be no difficulty at all about the labour, and the job cOuld be done well in Dunedin. Tho separation of the tenders would not prejudice tho Department iv any way, and would not cause any delay in completing the work. The president of the Otago Ironmasters' Association (Mr. Sparrow) said that if the specifications had to be followed out it would mean that one Contractor in Christchurch, Ottawa, London, Sydney, or Melbourno would got the job, and tho whole of the wages would be paid to men outside of tho Dominion. The drawings wero very plain, and it would not be difficult for cither Christchurch or Dunedin ironmasters to fabricate tho steel girders. There was up-to-date machinory for the purpose iv Dunedin, whero, howover, work in the foundries had boon very slack for some months past. Speaking for tho Boilermakers' Fedration, Mr. Warner mentioned that a number of married men in the iron trade in Dunedin were only employed periodically owing to the slackness of trade. If local industries were supported moro work would be available, ahd employers might then bo expected to expend money on improving thoir plant in order to bo better able to compete against other firms. Tho secretary of tho Amalgamated Society of Carpenters and Joiners (Mr. Whippy) supported the remarks of tho previous speakers, and pointed out tho need for providing sufficient work in each of the towns so as to avoid a rush to any place where work might be more plentiful than elsewhere. Tho mor.c work that could be done in the Dominion the better it would be for everybody. Mr. H. Mainland (New Zealand Employers' Federation) said that the idea of letting one contract for tho works under notice would mean that they would bo going a long way from assisting local industries. Knowing that the right stamp of contractors and tradesmen was available in the country, he felt' that tho work could bo done here, and if it could be done at anything like tho figure desired, then they were justified in making their roquest.

The Prime Minister stated that the matter had not reached him in any form excepting the discussion of how they' could fit in most conveniently in replacing the shops and designing a contract which would fit in without interfering with the general work of the Department. He asked Mr. Davidson (constructional engineer) to explain to the deputation the official reasons for adopting tho form of contract.

REASON FOR ONE CONTRACT,

Mr. Davidson stated that the matter had received a great deal of cxpe-1 consideration, and had been fully reported on to the Bail way Board. The special j reason for making one contract for the two shops arose from the order in which the work must foe carried out. Now shops would have to be built on the Bite of old ones. The new stool wagon shop at Addington was on the sito of the present machine shop. There would be a car and wagon shop at Addington and the locomotive shop would be at Hillside. The new foundry at Hillside would be on the site of the old car and wagon shop, which could not be removed until the Addington shop was completed. Thus it was necessary to provide for bonuses for prompt work and penalties for delay, which would work in association with the jobs in each city, as delay in ono contro would nullify the good effect of promptitude in the other. Therefore, it would not be reasonable to pay a bonus in one case if the good effect of this quick work could not be utilised. The contract .time for'completion of the steel wagon shop was computed from the actual time of complete of the locomotive shop at Hillside, and the foundry at Hillside was computed from the time of completion of tho ear and wagon shop at Addington. A properlybalancod time-table could only be carried out if it was in the hands of one contractor. No separate tender for Addington could be let unless thoro waa a satisfactory tender for Hillside, and vice versa, with each contractor agreeing not to make claims for extension of time, or for bonuses unless the other job was equally advanced. Mr. Love suggested that the conditions appo:taiuing to bonuses would have to bo varied, and possibly bomiscn could be withdrawn from two of tho jobs. The Prime Minister: "And how

would the Minister get on with his programme?" Mr. Love: "See that tho contractors get thoir work dono to time." CAN FIRMS AMALGAMATE? The Prime Minister: "We are giving them a bonus to finish in better time. That is how urgent it is in my opinion." He asked the deputation to roalise the position of the Department, which had to get up-to-date shops. Ho was assured that with these facilities they need not import a single thing because it could bo made as cheaply in New Zealand. Anything in the way of delay would mean maintaining a handicap on the Department. Could not tho firms amalgamate to put in a combined tender? Mr. Love: "No doubt they could, but on short notice they could make it moro competitive for the sopar.^'-.e jobs." Ho assured the Prime Minister that if he got the right contractors there would be no difficulties with good planning and staffing. It was suggested by Messrs. Sidey and Tapley that the matter could be moro effectively dealt with if the Department's experts consulted with the builders. This arrangement was approved by the Prime Minister, who said it would have to come* back to himself. Personally, tha simplest solution seemed to be an amalgamation of firms.