STATE HOUSING CONTRACT

Evening Star, Issue 22798, 5 November 1937, Page 1

STATE HOUSING CONTRACT

LET TO TRADE UNION BUILDERS' PROTEST [Pbk United Press Association.] WELLINGTON, November 4. The announcement that a further contract for State houses at Johnsonville had been let to the Union Construction Company was referred to tonight in a statement issued by the Builders’ Association. “This block of 20 houses,” says the statement, “ has not been submitted for public tenders, but has been allotted direct to a company, which was formed with a contribution of trades union funds and which has a trades union secretary. It is submitted that never has a worse case of pandering to political supporters been exhibited in New Zealand. Public money is being given to this company for work obtained at a price which is not known to the public and without any competition. It is understood that a total of more than 30 houses are being erected at Johnsonville, and that only five were, tendered for in open competition. First we had a big firm advertising in England and Scotland for men for New Zealand housing before tenders had ever been invited for any of the jobs. Then we had. the State erecting a joinery factory with public money and leasing it to a private firm for private profit. Then we had the deliberate shutting out of all effective competition for contracts from legitimato cottage builders by conditions under which tenders were called and huge amounts of capital needed. Now wo have the Government handing out groups of 20 houses to its political friends without competition. Is there any wonder that the people refer to housing scandals?”