Disparity in Tenders

Manawatu Times, Volume 62, Issue 149, 25 June 1937, Page 4

Disparity in Tenders

AIR. LEE’S COMMENTS Per Press Association. WELLINGTON, Last Night. Tenders recently closed for 76 houses in various parts of New Zealand under the Government housing seneme and Mr. J. A. Lee, Parliamentary Undersecretary in charge of Housing, said to-day in announcing the results of the tendering that there was absolutely no justification for the wide disparity that existed in the various prices in various places. The Government had no intention of paying the exorbitant prices tendered in some towns. He referred to a disparity in one case of £370 and said a difference in the cost of £SO was equivalent to at least Is per week for the rent that should be charged. Indicating that some tenders were to be readvertised Air. Lee said he hoped local builders would take the opportunity and be able to make good. It they did not the Government would be forced to take other steps than placing reliance on local builders alone. He said that in some of the city contracts a price of IS and a fraction shillings per foot had been received and against this he contrasted a Gisborne tender of 30 shillings. COST OF MATERIALS 25 PER CENT. HIGHER GISBORNE BUILDERS’ COMMENT GISBORNE, Last Night. The report of Air. Lee, Under-Secro-tary for Finance, in connection with State houses in which he drew attention to the high price of tenders in Gisborne as compared with other towns, was referred to master builders in Gisborne. Mr. Lee states that for one design of house the prices were: Lower Butt, £1017; Invercargill, £1018; Hastings, £1112; Gisborne, £1388; and said there was no justification for the wide disparity in prices, and tho difference of £370 iu Gisborne was astounding. Builders in Gisborne are of opinion that Air. Lee failed to realise that the cost of materials here was excessive compared with other places, being iu tho vicinity of 25 per cent, higher. Bricks were obtainable in Auckland at £4 15s, but the cost in Gisborne was £7 15s. Timber was in short supply and mostly had to come fnu tlio West Coast of the South Island and would be consequently much dearer. In Rotorua totara timber cost 24s upwards but for the same timber in Gisborne the cost was about 60s. Cement was another item which cost much more in Gisborne than in other parts. It was suggested that a better course would have been for Air. Lee to visit Gisborne and investigate the position before making such comment in the public Press. HASTINGS TENDERS FOR HOUSING ONE LIKELY TO BE ACCEPTED WELLINGTON, Last Night. When announcing the results of housing tenders, Air. J. H. Lee, Undersecretary, stated that in the Hastings scheme tho houses were grouped into six different contracts varying from 12 houses to one house, the variation being designed to give the small contractors an opportunity of tendering. Only two contractors submitted tenders, one a tender for 12 houses and another for a two-house unit. No tenders wore received for the other four contracts. The tender for the larger contract is unusually high and will be declined. The tender for tho two-house unit is reasonable, and if a satisfactory schedule is submitted, this contract will bo probably awarded to Mr. A. W. Apperley. Where teuders were declined, fresh tenders will be advertised at an 6q.rly date.