CLAUSE ABUSED

Evening Post, Volume CXXI, Issue 78, 1 April 1936, Page 16

CLAUSE ABUSED

BRITISH PREFERENCE

TENDERS FOR WIRE ROPE

■(By Telegraph—Press .Association.)

AUCKLAND, March 31.

" Many expressions of opinion were heard at a meeting of the Auckland Harbour Board when it was decided to accept the tender of an Auckland firm for a quantity,of wire rope manufactured in Germany. Tenders had been received from 11 firms representing British wire rope manufacturers.

In opposing the purchase of Ger? man wire rope two members pointed out that working conditions in Germany were on a much lower scale than those ruling in Britain, where workers were under awards and reasonable conditions of employment. It was the duty of New Zealanders, particularly such an important body as tho Auckland Harbour Board, to purchase British goods.

"I.'play..second fiddle to no man when it comes to loyalty," said Mr. E. J. Phelan. "The board should-not place any restriction on those tenders and the lowest "should be accepted. Admittedly preference should be shown to British, goods, but we are spending the public's money and when there is a difference, of £89 iri'the price of a £SQO] order then the British manufacturers cannot expect business."

Mr. D. Holderness,' engineer and acting superintendent to the board, said that until a short time ago there was a stipulation made when' calling tenders for the purchase of wire rope that only British goods would be considered. It soon became, apparent, however, that there was ■ some collusion amdng ' British firms and the tenders received on one occasion all revealed one price.: It. was then decided to delete the preference clause and make the-tenders open to the world.

"The- immediate result of this move," said \ 'Mir. Holderness, \ "was that British .firms reduced their. prices by 16 per- cent., which made it quite clear that the clause inserted for their good had only been abused. German wire, however, is quoted at 20 per cent, lower .than British."

In accepting the tender for German wire rope the board decided to write to the Trade Commissioner and High Commissioner in London pointing out the position and the reason for not accepting any of the British tenders.