SCHEDULE SYSTEM

Bay of Plenty Beacon, Volume 6, Issue 69, 4 May 1943, Page 5

SCHEDULE SYSTEM

HOSPITAL BUILDING CONSTRUCTION RECONSIDERATION PROMISED In response to the Whakatane Hospital Board's protest against the replacement of the regular tender system by instituting the schedule basis of hospital construction, the Minister of Health, Hon. H. Nordmeyer, has replied that the question' is now being reconsidered by the Government.

The. Board's letter stated that members A'iewed willl considerable apprehension the abolition of the tender system in view of the likelihood of considerably increasing the cost of its present building proposals.

The following points Avere made

(a) That the cost of hospital construction is borne half by the general taxpayer through the Government and the other half by the ratepayers of the hospital districts

(b) That whereas it might be reasonable that the opinions and decisions of the experts of the Health Department on details; of hospital lay-out and equipment etc. should predominate it is not considered that in a matter of business such as the method of having works performed cither party liable for half the cost should make decisions without even consulting the other.

(c) The system of calling for tenders for hospital buildings, has worked satisfactorily in the past and has ensured the erection of such buildings with due regard to economy, to the benefit, of both Government

and ratepayers

(d) lit was mentioned in the Circular No. -14, dated 13th August 1942 that the. reason for the change was that, materials and labour have had tO' be controlled for defence works. It is stated further that a contractor under the tender system would, have no security for labour and no control of materials and that delay would result in carrying out hospital work. It is asked "Why —the Government has declared hospital work to be dcfcncc works under the control of the Commissioner of Defence. The Commissioner also control all labour and materials. No matter whether the system be by tender or on schedule basis the iamc l materials and the same amount of labour are necessary for any one building. If the Commissioner is satisfied as to the necessity for any hospital building and approves of the construciton thereof it is difficult to understand why it should not be possible for him to allocate to a successful tenderer the same quantity of materials and labour as would be necessary for the same building to be erected on the schedule basis.

(c) On the information available to the board it is difficult for the members to understand the reason for a decision to change from the sound business procedure of calling for tenders for the construction of public works out of public moneys.

In view of the somewhat strong feeling throughout the Dominion on the matter of hospital rating, which feeling is shared by members of my board, and in view oi the change from established practice in these building matters, my board fecJs that it is due not only to the board but also to the contributing authorities and their ratepayers that particulars .should be. made available as to the reasons underlying and the purpose of such change. Minister's Reply The Minister's reply to the above was as under:— In reply to your letter of 22nd February protesting against the. Cabinet decision that during the war the tender system of building hospitals is to be abolished and all building construction shall proceed on the schedule basis, I have to slate that on referring the matter to the Commissioner of Defence Construction, the Department is advised to the effect that the question'of tenders and schedules is under further consideration at present. As soon as a decision has been reached the Board will be further advised.