GOLD-MINING DREDGES

Nelson Evening Mail, Volume LXXI, 21 June 1937, Page 9

GOLD-MINING DREDGES

BUILDING BY RAILWAY WORKSHOPS

MINISTER’S REPLY TO CORRESPONDENT A statement of the circumstances under which the Railways Department undertook the construction at the Addington Workshops, of two large goldmining dredges, and of the reasons why it is now found possible for a Christchurch firm to undertake the construction of another, is given by the Minister of Railways (the Hon. D. G. Sullivan), in reply to a correspondent of “The Press.” Mr Sullivan claims that the circumstances have altered since the department undertook the first contract, and also that the new dredge is a type more within the scope of a private firm. The correspondent’s letter is as follows: — Sir, —To say that the entrance of the State into the industrial field, to compete with private enterprise, is inequitable and unfair under our present political system; is merely the expression of a truism which nevertheless demands emphasis in our days of whirling change and dubious innovations. When our present Government assumed office and proceeded with commendable energy to set the national house in order according to its ideas or ideals, mining generally was put under the direction of Mr P. C. Webb, himself an expert and practical miner. Mr Webb, turning his attention to goldmining, decided that the development on successful lines of the industry must depend upon dredging operations. The old methods were obsolete and uneconomic. The industry, reorganised on modern scientific lines, offered prospects of success; so he declared that the very latest methods and the very latest dredges must be provided. Everyone acclaimed the wisdom of that decision. Next the Government, or Mr Webb, decided that we should build our own dredges, and thereby increase employment for our workers.

At this stage the Hon. D. G. Sullivan, Minister of Railways, entered on the scene. His concern was for the railways. Under his charge was a large and efficient engineering establishment. It could undertake the work of dredge building, and presumably he could build dredges without impairing the efficiency of railway construction plant for which the works under his direction were meant and designed. So he secured the contract for the building of dredges. The private engineering firms were pushed out of the picture. When some protest was made that this was unfair to private firms, Mr Sullivan replied that there was no private firm in New Zealand capable of doing the work, and it was handed to the railway workshops to prevent the work going abroad. Again the decision was commended, though many felt that if such an addition to the usual works of the shops could be undertaken without largely adding to the normal staff, there must have; been great overstaffing before-then. --

Now we hear that a contract for the construction of a dredge of the latest and most efficient type has been secured by a Christchurch firm—Anderson’s, Ltd. I learn from conversation with businessmen who know the facts, that that contract can be easily fulfilled by the firm in question; that all the dredges could have been built by it or other New Zealand firms. I should like now to hear from Mr Sullivan what his explmation is.— am, etc., JOHN STRAIGHT. 4th June, 1937. POSITION REVIEWED In commenting on this letter, Mr Sullivan saidll — “At the time the Railway Department workshops at Addington, two large workshops at Adington, two large dredges to be used in gold mining on the West Coast (of a total weight approximating 6000 tons) it did so following receipt of a. written statement by the engineer and the managing director of the company concerned, that if the Railways Department would not undertake this work the company would have it done overseas. In a letter to the Prime Minister, the company’s engineer stated that following on his company’s inquiries from two of the largest

engineering companies operating in the Dominion, and their sending in tenders for the work, he was satisfied that it could not be satisfactorily carried out by them, and that he therefore contemplated and proposed definitely to place the order with overseas companies from whom he had previously received tenders.

“He was, however, convinced, after inspecting the railway workshops equipment at Addington, that the railway workshops there could carry out the work as required by his company.

KEEPING WORK IN DOMINION

“It was in these circumstances that the Railways Department undertook the work. The Government felt that, in view of the number who would be employed over a considerable period through the work being done in the Dominion, and also in view of the direct statement of the company s representative that it would not be possible to place the order in the Dominion unless it was carried out at the railway workshops, it would not be in the best interests of the Dominion to refuse the use of the Government's manufacturing plant at the railway workshops for a job of the kind.

“Actually the workshops are making rapid progress with this work, the present output of manufactured material for the job approximating 80 tons a week, and the work is giving constant employment to a considerable number of employees. “As pointed out by me on a previous occasion, the circumstances existing at the time made it advisable for the Railways Department to accept the con-

tract, and I feel sure that we, as : a Government, would have been failing in our-duty had we allowed the opportunity of providing work on the scale involved to pass out of the Dominion, when it was in our power to prevent it

“The whole matter, I may say, was explained to the firm of Anderson’s, Ltd., of Christchurch, at the time.

NEW UNDERTAKING

“In reference to the present dredge which I understand this firm has contracted to build, I may say that the department had an opportunity to consider whether it would undertake building the dredge in question, but the circumstances had altered in the respect that the dredge was not so large and there were certain technical differences that made it a job that could more likely be put through by a private firm in the time required than the larger jobs undertaken by the department, and consequently, as the goldmining company concerned was advised, the department did not desire to undertake this work if it could: be carried out by a private firm in New Zealand.', It is under these circumstances that the contract referred to has been placed.

“It has never been the desire of the Government to use its railway workshops in a way that might, provide unfair competition with private companies, and indeed very great care is taken to see that when any work is. accepted for the railway workshops from an outside source, the whole of the costs are included, so that the Railways Department may have no advantage in quoting for work which it is in' a position to handle, and for which it can give useful employment to its staff.”