HOUSING PLANT

New Zealand Herald, Volume LXXIV, Issue 22725, 11 May 1937, Page 15

HOUSING PLANT

PUECHASES CBITICISED TO CALL TENDERS I' ATTACK BY MR. DOIDGE ——— BRITISH FIRMS NEGLECTED The methods adopted by the Government in purchasing equipment for its housing factories Avithout calling tenders, and its alleged failure to select British plant, were attacked by Mr. F. W. Doidge, in an address under the auspices of the National Party, at the Leys Institute last night. He said public opinion - wag restless and disturbed on the vital issue of public expenditure,, "Some time ago I raised the question of the conditions under which plant was being purchased by the Government for its house-building scheme,"'Mr. Doidge stated. "Many thousands of pounds were involved in the purchase of equipment. An order. Iprobably the largest for wood-working /machinery ever given in New Zealand, was placed with a firm in Christchurch, representing an English firm. I asked at the time why public tenders had not been called for a job of such magnitude. Letters and telegrams were sent to the Prime Minister by those anxious to tender. Department's Explanation "No satisfactory explanation was offered, beyond an admission in writing by the Director of the Department of Housing Construction that the order for machinery had been placed. The director on that occasion, however, did give this assurance: 'I anticipate that in future public tenders will be called for all work and plant required by the Department of Housing Construction.' 1 hold that letter at the present time." Mr. Doidge said that shortly after this the Department of Overseas Trade at Home informed British manufacturers that application had been made for a certain type of Swedish machinery to be admitted • into New Zealand free of duty. Immediately an English firm wrote to its New Zealand agent, an Auckland company, declaring that it was capable of supplying machinery of this particular type to the New Zealand Government. "Machinery Wanted in Hurry"

Mr. Doidge explained that a director - of the Auckland company wrote to the Minister of Customs, pointing out that his firm was quite capable of supplying this machinery, and at the same time asking an assurance that duties would not be lifted from foreign machinery. He concluded his letter to the Minister by saying: " Doubtless you are aware that our principals were precluded from tendering for machinery purchased by the Minister, of Housing, and they are asking the reason why." The reply to that letter came from the Parliamentary Under-Secretary for Housing, Mr. J. A. Lee, who stated: "The machinery that was ordered for the housing factories was ordered after consultation with departmental experts, because it was , the type of machinery ; we required, and was [bought at a price that was well below fthe price that had been tendered for X similar machinery when the 'Government had called for past contracts." The excuse was further offered by Mr. Lee, Mr.* Doidge said, that "the machinery was wanted |n a hurry." No Opportunity to Tender "The director of the Auckland company, in 'indignation v was moved to write a strong letter to the Prime Minister," Mr. Doidge stated. "Mr. Savage's reply gave the usual piSamise to have the matter investigated, but contained the further statement: 'No doubt it is the disappointment occasioned by your firm's failure to secure the orders placed for the machinery in question which impels you to charge the Government with not giving the firm a fair deal.' To that letter the director promptly replied: 'Our complaint is not that we did not secure the order, but that we were not given an opportunity of tendering, for the order.' , „ "The Government cannot be unaware of. the fact , that public opinion is restless and disturbed on the vital isstie of /public expenditure," Mr. Doidge concluded. "Incidents such as these do not ease that unrest-. Only a few weeks ago our High Commissioner, Mr. W. J. Jordan, speaking in London, declared: 'New Zealand is prepared to refuse to accept goods from foreign countries, even_ though they may be much cheaper. New Zealand is prepared to give absolute preference to Britain.' What hypocrisy it is for our chief salesman in Britain to talk like that at the very moment when we refuse to permit British firms to even tender for the jobs we give to foreigners," Mr. Doidge concluded.