COAL CONTRACT

Gisborne Times, Volume LXII, Issue 9997, 28 April 1925, Page 2

COAL CONTRACT

COMPLAINT BY TENDERER. DISCUSSED BY HARBOR BOARD, A contract let for supply of coal by the Harbor Board was the subject of a complaint by a lowest tenderer, Mr, W. E. lies, in the following letter to the Board, dealt with at yesterday’s meeting:— “On the loth in,st. your Board called tenders for 1000 tons best steam coal, and two tenders were received, viz., Hikurtuigi, unscreened, £3 2s and £3 6s 3d per ton; West-port-, small coal, £2 17s 8d and £3 3s 6d per ton. Tlio latter is the class of coal 1 am still supplying to your .Board. Your eng.ncer now adv ,sos that the committee have decided to accept a tender for Hikurangi coal at a higher price than Westport, the increase being 4s 6d and 2s 9u per ton. This is a very serious matter as it will mean an extra cost to jour Board on tins contract of approximately £100(1. especially as it requires about one-th id more If ikurangi to obtain the same rcsu.ts as from Westport coni. ...” The subject was further dealt with in a special report of the dredging superintendent, Captain Baric. This said that for some time past they lud ■ had difficulty in keeping up- steam on the- dredger ar.d tug Pelican. They had coinp’a’.ned to the contractor, Air. lies, and he promised it would be better in the future. He also stated when tendering for the contract thin; bo was submitting prices for three grades of coal, but could not recommend the first. He lod recommended Hilcurnngi c-oal because lie had found from a test procured in Auckland, ar.d also from the chief engineer of the Auckland dredger, that it was most su'table for their class of work.

The chairman stated that the lies tender had been accepted but when the contract was drafted the firm declined to sign up or proceed with the contract, as the able to supply it. Ho notified the Engineer to instruct Mr lies the next tenderer that his offer was acceptable but this tenderer also refused to contract as be submitted that lie would have to make new arrangements. Consequently there was no option but to call fresh tenders for which a deposit bad to be ma.de, as would be the case for future supplies of coal, and there wore two tenderers, Mr lies and Capt. Holmes. The former submitted two prices for Westport and special unscreened which was '3d dearer, but the Hikurangi coal offered by Capt. Holmes was cheaper and consequently was accepted. Further the Hikurangi coal would be brought down in small sailing vessels which could land the coal on the groyne; in fact <j,cuhl be put into the dredge bunkers, whereas bigger steamers would have to deliver the coal into the yard which would mean another 4s to deliver it into the dredge. Tests had ben made with the Hikurangi coal which was found to be quite satisfactory, although Westport coal was beter for steaming the Tvorua did not need big steaming coal. The letter was received.