OTIRA TUNNEL.

Dominion, Volume 6, Issue 1629, 21 December 1912, Page 7

OTIRA TUNNEL.

.v ■ g CONTRACTORS TO BE RELEASED, fresh tenders to be called. CABINETS DECISION. Cabinet decided yesterday afternoon to cancel Messrs. M'Lean and Sons' contract for tho construction of tho Otira- Tunnel, and fresh tenders will bo called for the completion of the work immediately after the Christinas holidays. This decision virtually gives cli'cct to tho recommendations of the Select Committee .of tho .House of Representatives which' was set. up to iuquiro into the petition of Messrs. Jl'Lean for release from their contractual obligation to finish the tunnel. ' . Tho contract of Messrs. Murdoch and Neil M'Lean, carrying on business under tho style of "Joiin M'Lean and Sons" for the Arthur's l J ass tunnel, was accepted by the Government on August 1, 1907, and on August 9 following, a contract was signed by the coitractors and their sureties, Messrs. Oliver, Nicholson and John. M'Lean, both of Auckland. Tho contract ~ sum was £5'J9,794, and the timo stipulated., for the work was five years, which teriivexpired, therefore, on August 9, 1912. Tile contractors lodged a deposit of £5000, which is still held by the Government,.', and with tho sureties entered into a bond of .£25,000 for tho duo fulfilment of their contract. It was stipulated in their contract' that the contractors would lie liable lu a deduction, or set-off, at the rate of .£2BO per week for cach week after August 9, 1912, until the completion of the contract. Tho length of tho tunnel as designed is 5 miles 24 chains, aiid the contract includes somo formation and bridge work at each end, making the whole length of the railway included in tho contract eight miles. Approximately, one-third of the work of the Coiltractors has been completed, and the committee found that it had been, oompleted ! at a loss to the contractors of ,£53,418 13s.' 4d., including the .£SOOO deposit lodged, but not including the sureties. Tho.. amount received by tho contractors Was upwards of £200,000. The final clauses of the committee's roI commendations. to' tho Government werp as follow That the contractors have, . under great and varying difficulties, endeavoured to carry out the torms of the' • contract, and have sustained _ heavy losses both in connection with tho Otira .Tunnel and Wellington Dock, contracts. That, in view of tho whole of tho circumstances and of the difficulties experienced by tho contractors, the Government' bo recommended to release the contractors and their sureties from their contract if tho contractors so desire, and to return to the : contractors the sum of <£5000, the de- : ■ posit paid. . . That the Otira Tunnel is a national work, and should be completed. That tho Government be further re- - commended to invite tenders for tho completion of the contract, and that, pending a decision on such tenders, the Government should carry on tho •works. That, in the event of no eatisfac-; tory tender being received, the : Gov-' eminent bo recommended to tako such , steps and mako such arrangements for the completion of the works as n lia- : tional undertaking as they may think advisable. A deputation of West Coast residents is to. meet the Prime Minister to-day as ji deputation to urge the necessity for completing the tunnel.