ROAD MACHINERY

New Zealand Herald, Volume LXXIV, Issue 22896, 26 November 1937, Page 13

ROAD MACHINERY

REMISSION OF DUTY

NO FAVOURITISM TO FIRM STATEMENT BY MR. SEMPLE QUERY ABOUT CONTRACT PRICE [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Thursday Suggestions that the Public Works Department had shown favouritism in granting tenders for machinery required on public work? were again denied by the Minister of Public Works, the Hon. R. Scrapie, during the discussion on the public works maintenance estimates in tho House of Representatives to-day. "I want to draw attention to the preference which seems to have been given to one firm, Messrs. Gough. Gough and Hainer, in tho provision of machinery for the department," said Mr. J. Hargest (Opposition—Awarua). "A Gazette of last April reduced the duty payable on certain classes of machinery. All of these makes, manufactured by one American firm, were exempt on the instruction of tho Minister of Customs from the payment of the 25 per cent duty. The extraordinary thing is that nearly all of them, if not all, are sold under tho agency of this one firm. Why did the one agent for these American machines get this preference?"

" All Tendered For " "There has been no special preference granted to the company in Question," said Mr. Scmple. "The Minister of Customs can answer the question about the exemption of duty, becauso that is his department. However, I want to say that all the machinery purchased by my department has been tendered for. "There was a demonstration of this American machinery at Rongotai. Any other company could have done the same. It was made plain to this particular company that the demonstration did not involve the certainty of any orders, and that in any case no order would be given unless the company went into open competition with its machinery. No other company insido or outside New Zealand offered to givo a similar demonstration. "There have been all sorts of rumours about this, some cruel, some almost criminal," Mr. Semplo said, "but there has been no favouritism given to any company. As Minister, 1 am entitled to preside at the meetings of the Tenders Hoard, but I have never done so. My engineer? are given unfettered rights to select the machinery they want, provided it is bought by open tender." Question ol Price Raised Mr. Hargest returned to the point later in the discussion, when he asked what chance any other firm had to compete with Gough, Gough and Hamcr when that firm received a remission of dut.v 011 its machines. Mr. Soniple: Any other company which has a similar type of machine to sell can apply for exemption and get it. Mr. Hargest: But these particular machines are specified in the Gazette notice. It would he all right if all machines of that type were to be exeni pt. Mr. Semple: Any other company can get similar treatment. Mr. H. S. S. Kyle (Opposition—Riccarton) asked what had been paid for the machines, and inquired whether the contract price had included the duty Mr. Semple: The Government has always obtained machines of this type duty free from America or anywhere else. Mr. Nash Explains System Mr. Kyle: Was the duty in the contract price ? Mr. Semple: That doesn't matter. If we had exempted this company from duty and then made another company pay the duty, the Opposition would have some grievance. Mr. W. J. Broadfoot (Opposition— Waitomo) suggested that the Minister might be a little more explicit. Tho Government should have broadcast the fact that all makers of that type of machine were welcome to tender. Mr. Semple: We did that. Mr. Broadfoot: If county councils or private individuals wish to get these machines in duty free, will they be able to do so 2 The Minister of Customs, the Hon. W Nnsh: Yes. Explaining tho system under which a remission of duty was made on industrial machinery, Mr. Nash said that if the machinery could not be made in New Zealand it should be purchased from the United Kingdom if possible, but if it could be procured only from some other country tho Minister of Customs could allow it to come in at the British rale. Point to be Looked Into "The decision to remit duty is notified in the Gazette," the Minister continued, "and if any person can show that the machinery can be procured in Britain the remission is automatically cancelled. At the time the remission on this road-making machinery was granted, the Hon. M. Fagan was act-ing-Minister of Customs, and no one would question his ability to deal properly with this matter." Mr. Hargest: But only this actual brand of road-making machinery is mentioned in the Order-in-Council. Mr. Nash: T don't know about that, but perhaps only that firm makes that tvne of machinery. Mr. Hargest: That is not so. Mr. Nash: That will have to be looked into. Tt is the article of manufacture that is given the right of entry, not the importing firm.