STATE HOUSES

Otago Daily Times, Issue 23341, 5 November 1937, Page 10

STATE HOUSES

CONTRACT AT JOHNSONVILLE TENDERS NOT CALLED FOR COMPLAINT BY BUILDERS (Per United Press Association) WELLINGTON, Nov. 4. 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 tc 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 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 the public and without any competition. It is understood that a total of more than 30 houses is being erected at Johnsonville and that only Ave were tendered 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 the deliberate shutting out of all effective competition for contracts from legitimate cottage builders by conditions under which tenders were called and 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 the people refer to housing scandals? "