STEEL FOR STATE

New Zealand Herald, Volume LXXVI, Issue 23411, 29 July 1939, Page 12

STEEL FOR STATE

£IOO,OOO DEBT DENIED NO PAYMENT OWING FUTURE COMMITMENTS EXPLANATION BY MINISTER [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Friday A suggestion that the New Zealand Government was owing an Australian company for steel already supplied and that the company had refused to supply further steel to New Zealand until payment for material supplied was assured was contradicted by the acting-Leader of the House, the Hon. P. Fraser, in the House of Representatives this morning. "Regarding the statement made that, i the New Zealand Government was indebted to the Broken Hill Proprietary Company, Limited, in the sum of £IOO,OOO. and that the company has refused to supply further steel to New Zealand until payment for material suppplied was assured, j said Mr. Fraser, "the position in so far as the Public Works- Department is concerned is that absolutely nothing is owing to the company for steel supplied. It is true the department has large commitments to the company for future supplies, but payment is not required until delivery is made, and delivery is not called for until l certain specified distant dates. "In so far as the company itself is concerned, it has fulfilled and agreed to fulfil all outstanding orders placed in the first six-monthly period covered by the import restrictions, but it asks that before orders lodged during the second six-monthly period are fulfilled credit shall first be arranged. "Subject to this condition the Broken Hill Proprietary Company, Limited, will supply all New Zealand orders lodged with it. It is authoritatively stated that the recent press statement made in regard to the refusal of steel companies to supply steel in fulfilment of New Zealand orders did not emanate from the Broken Hill Proprietary, but from some other source, and does not represent that company's attitude."