RAILWAY CONTRACTS.

Otago Witness, Issue 3773, 6 July 1926, Page 68

RAILWAY CONTRACTS.

COMBINED TENDERS OPPOSED. DEPUTATION TO PRIME MINISTER. WELLINGTON, July 1. This morning a deputation from representatives of tne builders and ironmasters and the Employers’ Federation waited on the Prime Minister and urged that separate, instead of combined tenders should be called for the supply 01 steel firders, etc., for the erection of the Ad ington and Hillside railway workshops. The specifications at present provide that separate tenders will not be considered, but the deputation contended that if this clause were altered in the direction desired an opportunity would be given to several stimulating trade, which at present was stimulating trade which at present was slack. Mr Coates suggested that the firms interested should amalgamate in the matter of tendering. The deputation wa3 introduced by Mr T. K. Sidey, M.P., who said that Dunedin was the home of* the iron industry in New Zealand, and that there was a good deal of feeling over the matter. Mr H. L. Tapley, M.P. (Mayor of Dun edin), stated that the Railways Department would probably stultify itself in the matter of getting competitive tenders by the clause in the specifications providing that only combined tenders would be received. If the tenders were separated a number of the smaller firms would be able to tender but as the’specifications stood it was feared that the contract for the work would go to firms outside of the Dominion. The steel girders, for which some 7000 tons of steel were required, could be made in Dunedin and thus help to meet the unemployment situation in the iron industry. Further more, local industries would be given the chance of preference being accorded them. On behalf of the Dunedin Master Builders Mr J. Y. Love said that rather than ask for direct preference for the local indus tries they merely wanted a sporting chance “to have a fly” in tendering. “If the other fellow beats us,” he said, “then good luck to him. We do not want the Government to give away one penny on this job, but we want to be able to tender on the most favourable conditions.” If the tenders were separated, he said, there would be at least four firms in Dunedin who .would tender tor Hillside requirements. There need be no difficulty at all about the labour, and the job could be done well in Dunedin. The separation of the tenders would not prejudice the department in any way and would not cause any delay in com pleting the work The President of the Otago Ironmasters’ Association (Mr Sparrow) said that if the specifications ,Jiad to be followed out it would mean that one contractor in Ottawa, - London, Sydney, or Melbourne would get the job, and the whole of the wages would be paid to men outside of the Dominion. The drawings were very plain, and it would not be difficult for either the Christchurch or Dunedin ironmasters to fabricate the steel girders. There was up-to-date machinery for the purpose in Dunedin, where, however, work in the foundries had been very slack for some months past. Speaking for the Boilermakers’ Federation, Mr Warner mentioned that a number of married men in the iron trade in Dunedin were only employed periodically, owing to the slackness of trade. If local industries were supported more work would be available and employers might then be expected to expend money on Improving their plant in order to be better able to compete against other firms. The Secretary of the Amalgamated Society of Carpenters and Joiners (Mr Whippy) supported the remarks of the previous speakers, and pointed out the need for providing sufficient work in each of the towns so as to avoid a rush to any place where work might be more plentiful than elsewhere. The more work that could be done in the Dominion, the better it would be for everybody Mr H Mainland, representing the New Zealand Employers’ Federation, said that the idea of letting one contract for the works under notice would mean that they would be going a long way from assisting local industries Knowing that the right Stamp of contractors and tradesmen was available in the country, he felt that the work could be done here, and if it could be done at anything like the figure desired then they were justified in making their request The Prime Minister stated that the matter had not appealed to him in any form ex- , cepting the discussion of how they could fit in most conveniently in replacing the shops and designing a contract which would fit in without interfering with the general work of the department. He asked Mr Davidson, constructional engineer, to explain to the deputation the official reasons for adopting the form of contract. Mr Davidson stated that the matter had received a great deal of expert consideration and had been fu]]y reported on to the ’ Railway Board. The special reason for making one contract for the two shops arose from the order in which the work must be carried out. The new shops would have to be built on ihe site of the old ones. The new steel wagon shop at Addington was on the site of the present machine shops. There would be a car and wagon shop at Addington, and the locomotive shop would be at Hillside. The now foundry at Hillside would be on the site of the old car and wagon shop, which could-not be removed until the Addington shop was completed. Thus it was necessary to provide for bonuses for prompt work, and penalties for delay. Associated work on the jobs in each city would be necessary as delay in one centre would nullify the good effect of promptitude in the other. Therefore, it would not be reasonable to pay a bonus in one case if the good effect of this quick work could not be utilised. The contract time for completion of the steel wagon shop was computed from the aotual time of completion of the locomotive shop at Hillside, and the foundry at Hillside was oomputed from the time of completion of the car and wagon shop at Addinffton. A properly balanced time-table could only be carried out if it were in the hands of one contractor. No separate tender for Addington ooald be let unless there was a satisfactory tender for Hillside, and vice versa, with each contractor agreeing not to make claims for an extension of time, or for bonuses, unless the other job was equally advanoed.

Mr Love suggested that the conditions appertaining to bonuses would have to be varied, and possibly bonuses could be withdrawn from two of the jobs. The Prime Minister: And how would the Minister get on with his programme? Mr Love: See that the contractors get their work done to time. The Prime Minister: We are giving them a bonus to finish in better time. That is how urgent it is. in my opinion. He asked the deputation to realise the position ol the department which had to get up-to-date shops. He was assured that with these facilities they need not import a single thing because it could be made as cheaply in New Zealand. Anything in the way of delay would mean maintaining a handicap on the department. Could not the firms amalgamate to put in a combined tender? Mr Love: No doubt they could, but on short notice they could make it more competitive for the separate jobs. He assured the Prime Minister that if he got the right contractors there would be no difficulties with good planning and staffing. It was suggested by Messrs Sidey and Taplev that the matter could be more effectively dealt with if the department’s exnerts consulted with the builders. This arrangement was approved by the Prime Minister, who said it would have to come back to himself personally. The simplest solution seemed to be an amalgamation of firms.