HOUSING METHODS

New Zealand Herald, Volume LXXIV, Issue 22878, 5 November 1937, Page 14

HOUSING METHODS

JOHNSONVILLE CONTRACT

NO PUBLIC TENDERS CALLED CRITICISM BY BUILDERS [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Thursday The announcement that a further contract for State houses at Johnsonville had been let to the Union Construction Company was referred to tonight in a statement issued by the Builders' Association. "This block of 20 houses," says the statement, "has not been submitted for public tenders, _ but has been allotted direct to a company which was formed with a contribution of trades, union funds and which has a trades union secretary. It is submitted that never has a worse case of pandering to political supporters been exhibited in New Zealand. Public money is being given to this company for work obtained at a price which is not known to tho public and without any competition It is understood that a total of more than 30 houses is being erected at Johhsonville and that" only five were ten 7 dered for in open competition. "First we had a big firm advertising in England and Scotland for men for New Zealand housing before tenders had ever been invited for any of the jobs. Then we had the State erecting a joinery factory with public money and leasing it to a private firm for private profit. Then we had a deliberate shutting out of all effective competition for contracts from legitimate cottage builders by the conditions under which tenders were called and the huge amounts of capital needed.

"Now we have the Government handing out groups of 20 houses to its political friends without competition. Is there any wonder that people refer to housing scandals?"