PAYMENT REFUSED

Hokitika Guardian, 23 August 1929, Page 6

PAYMENT REFUSED

ALLEGED BREACH OF CONTRACT. AUCKLAND, August 21. Drastic action was taken by the Rapatoctoe Town Board last evening in deciding that no further payments be made to the contractors for the waterworks, Messrs Gosse and Mullens until the Board was assured that the men engaged on the work were local ratepayers or residents. The third progress payment for £5552, which had become due. was withheld by the Board until the conditoins of the contract were met. . “All tin-ought the contract the attitude of the contractors has been most unsatisfactory, and extreme measures must be taken to enforce the preference clause in favour of local men,” said Mr E. S. Sm-eensen. chairman of the Works Committee. He added that after due consideration the Committee had decided to recommend the Board to withhold temporarily the August payment. Local labour had not been given a fair deal, continued Mr Sorensen. The contractors had complied only partially with the Board’s requirements after considerable pressure. “ The contract is being flouted.” said Mr Smytheman (chairman). “The only possible action for us is to refuse payment in the meantime.” The statement that he had been inundated by complaints (from applicants for employment was made by the Town Clerk (Mr Young). He said some "f the complaints had been very bitter, and it was necessary for the Board to take official action. The recommendation of the Works Committee was ndooted, end a further motion was passed that in the event of satisfactory assurances that tlm terms of the contract in respect of local labour were being complied with the chairman of the Board and the chairman of the Works Committee be authorised to make payment off the third progress cheque.