THIRD LESS COST

Grey River Argus, 23 April 1937, Page 5

THIRD LESS COST

N.Z. PUBLIC WORKS

Semple Answers Hargest

CORRECTING NATIONAL BLUNDERS. (Per Press Association. - ) WELLINGTON. April 22. A reply to the statements concerning the Government’s public works policy was made by Air Hargest, ALP. at Waiuku recently, was made to-night by Hon. R. Semple. The present Government’s policy, far from mortgaging the future, said Air Semple, aimed at providing for that development which is essential to the country’s progress. He pointed out that, while the public works men were earning better wages than ever in the past their output was greater than ever before, and notwithstanding the good wages, the cost of construction had decreased.

Referring to Air Hargest’s remarks about the South Island Trunk Railway, Air Semple said that the present Government did not start that railway, and as with seven other partly-completed and abandoned lines, the Government had had to decide whether to complete it and get the benefit of whatever development value it possessed, or allow the expenditure previously incurred to continue a dead loss, with no hope of any return. In the Labour Government’s view the only thing to do was complete the linos so as to get what return was available.

Mr Hargest has also referred, said Mr Semple, to the quantity of new machinery of an American pattern to be found on public works in the North Island, and he asks what sum has been spent—whether it was all necessary; i and whether tenders have been called, or an order simply handed to a favoured concern! I take the strongest possible exception to his veiled insinuation regarding tenders. Does Mr Hargest mean to suggest the purchasing of this plant and machinery has not been done in the proper, orthodox manner? Tn making such an underhand insinuation, he is striking not only at the integrity of myself as Minister, hut at the integrity of my departmental officers as well! “Of course, tenders were called, and the market tested from time to time. As far as American plant and machinery is concerned, what the Department has bought was purchased through the representatives of no less than twentythree American manufacturers! “As to whether the new machinery was necessary. I say that it was. and mainly on account of the policy of the past Government (of which Mr Hargest was a member) in selling to the highest bidder practically all of the gear which the Public Works Department then possessed.’’

Mr Semple said that his strict policy has been to buy plant, first, of New Zealand manufacture; secondly, from the United Kingdom; and, thirdly to consider the best which the rest of the world had to offer. It was found, however he added, that certain of the heavier types of constructional machinery was not available from New Zealand or from British manufacturers, and it had to be obtained from America.

“The expenditure on the purely construction plant and machinery since January 1. 1936,’’ he said, “approximates £500.000, and if the installed machinery is added, the expenditure totals £712.000 this amount is spread over the different countries as follows:

New Zealand £85,698; Britain £354,871; America £231,152; Sweden £34.600; Germany £5248; Switzerland £688; Austria £478. This expenditure, certainly is large, but. it must be. remembered that, when this Government took control, 1h e Public Works Department was practically depleted of effective plant. It is now properly and efficiently equipped, with the result that on much of its work a saving of about 33 1-3 per cent, on the former cost is being made and the work is being done in about half the time. It is estimated that these machines will have paid for themselves in four years’ tune.’’