COAL FOR RAILWAYS

Sun (Auckland), Volume IV, Issue 1081, 19 September 1930, Page 10

COAL FOR RAILWAYS

ATTACK ON MINISTER CONTINUES MR. J. S. FLETCHER’S CRITICISM Press Association PARLIAMENT BLDGS., Today. Consideration of the estimate of r £6,378,003 for the working railways account was resumed in Committee of Supply in the House of Representatives this morning. The Minister of Railways, the Hon. W. A. Veitch, said he desired to give the House the facts with reference to the allegation of Mr. J. S. Fletcher (.Independent—Grey Lynn) that the department had not accepted the lowest tender for com in the Waikato. Mr. Veitch stated that one company had offered to supply coal at a certain figure all the year round. The Minister emphasised that the tender at the lower price was for all the year round and this was not acceptable to the department. Mr. Fletcher had read a telegram to the company which, he said, he had been assured was the first communication the company had received on the subject. This telegram had asked for a tender for the supply of coal for a period of, say, three years. Mr. Fletcher had declared there was absolutely no reference to seasonal requirements in the telegram and he had challenged the Minister to show that there had been any earlier coin munication to this company. Mr. Veitch read earlier correspondence on the subject to various com- I panics, including the company to j which Mr. Fletcher had referred. He ! said it was quite apparent that the Government’s contract had been in i ihe best interests of the country. I Mr. Fletcher said that in spite of the | Minister’s assurance the facts were j that the Pukemiro Coal Company and the Renown Colliery had offered the Government supplies at 19s a ton, whereas the Government, had accepted the tender of the Taupiri Company at 19s 3d. He moved that the estimate be reduced by JC9 as an indication that the whole question of the coal contract should be referred to the Railways Committee for investigation. The Minister insisted that Mr. Flet- < her had misrepresented the position. He agreed to refer the contract to the committee and the amendment was thereupon lost on the voices. The Leader ot' the Labour Party, Mr. H. E. Holland, again raised an objection to the reduction of coal orders. He said the Minister had explained that it was necessary to work down the existing supplies of inferior coal, but even if this were necessary it should have been considered that there was some danger of creating unemployment. Mr. W. E. Parry (Labour —Auckland Central), referring to the Waikato coal contract, suggested it would have been wise to spread the order over a number of companies, with a view r to keeping a greater number of men employed. Mr. Veitch said the position of the coal mines in the Waikato could not be permanently dislocated. The Taupiri Company would not be a competitor as formerly in the open market, which was still available to the other companies. Mr. J. O’Brien (Labour —Westland) urged that the department should use nothing but New- Zealand‘coal on the railways. Mr. Veitch: As far as is humanly possible, we will. Progress was reported and the House rose at 12.45 until 2.30 p.m. on Tuesday next. YESTERDAY’S DEBATE TENDER METHODS ATTACKED 7HE SUN'S Parliamentary Reporter PARLIAMENT BLDGS., Thurs. The Railway Department's method j o Z calling for tenders for coal 3up-! plies was severely criticised in the ; House this afternoon by Mr. J. S. j Fletcher (Independent—Grey Lynn),! who made special reference in the j Railways Statement debate to the j „ supply of Waikato coal. More than 7 200,000 worth of coal was involved i t the coal contracts, he said, and he outlined the method by which a recent contract for the supply of Waikato coal had been entered into. The following urgent telegram was out to several companies on August 15: “Are you prepared to quote for a < ontract for your company to supply Hie whole of our requirements of Waikato coal, up to 1,500 tons a week for r. period of, say, three years? If so I lease quote price. Reply today certain.’* On specifications like that the (ompanies were asked to quote for i lore than £200,000 worth of goods.. There was not a word about seasonal applies, although the controller of stores* claimed later that, the accepted tender was for seasonal supplies. Why v are other companies not acquainted with that fact? There was something not open and ; bove-board in that way of doing business, and there could be no satr factory explanation. The department bad paid 19s 3d a ton when it.had two offers, one for 700 tons and one lor 750 tons at 19s. The tender of 19s 3d a ton was accepted, and the Taupiri Company, which got the contract, was not supplying all the coal. ?ome was coming from the Glen Afton mines. Those who remembered the recent discussion in the House about the lease of the Macdonald State Mine to Glen Afton, were wondering what it all meant. The Minister of Railways, the Hon. Yv". A. Veitch: That’s the stuff. Mr. Fletcher: Yes, and if the Minister can explain it away he lias something ahead of him. Why should the contract be fixed up for three years? Mr. Veitch: It is for two years. Mr. Fletcher: Why were tenders called for three years? Mr. Veitch: I am not under crossr xamination. Mr. Fletcher: Other people were not given an opportunity to tender for the seasonal supplies. Mr. Veitch: There were letters before the telegram. The telegram, Mr. Fletcher said, was the only communication concerning the contract. If the Minister had a satisfactory explanation Mr. Fletchei would accept it. Mr. Fletcher raised the point again later during the Railways Estimates debate. Mr. Veitch, however, said Mr. Fletcher had been misinformed and that there was correspondence and a definite offer from a company before the urgent telegrams were sent out to the coal companies. Mr. Fletcher asked whether different telegrams were sent to the n*Jer*‘l:t companies. Was the deal on the level? fhe adjournment of the debate piei