PICKLES CONTRACT

Evening Post, Volume CXXXVIII, Issue 55, 2 September 1944, Page 9

PICKLES CONTRACT

DISPUTE OVER £19,000

MINISTER'S EXPLANATION

! "There is a tomato sauce factory in Christchurch which has gone 'bung'; it .had £19,000 to £20,000 of our money, land I understand there is no security, but I can't find anything out unless I make a charge," said the Leader of the Opposition in the House of Representatives yesterday, when urging that there should be more information about the use of the War Expenses Account. The firm, he said, was the Pioneer Manufacturing Company. The Minister of Supply (Mr. Sullivan): You are not telling the story correctly. , Mr. Holland:/ Now we are getting down to something. Mr. Sullivan said there were a number of firms which had come under leaselend in the ordinary way to enable the business of the country to be carried on. Credits were granted in the ordinary way. Apparently the firm was in difficulties. The Minister of Finance (Mr. Nash) said he did not believe there was such a thing as a loan to the company. 1 JVIr. Holland: It is either a loan or a gift. . .- ■. ■ . ;' Mr. Holland said that Parliament had the right to see that the people's money was.properly spent. As far as that company was concerned there was- a liability on the balance-sheet of the firm to the Supply Department of £19,000: The Minister of Supply said he had just received a report from his Department concerning the Pioneer Manufacturing Company. He had l.ot read it, but would give the House the contents of the statement. It stated that during the 1942-43 season contracts were let with the company on behalf of the British War Office for quantii ties of pickles. Deliveries were made and regular samples were taken, and on satisfactory tests being reported by the Scientific and Industrial Research [Department the pickles were' accepted and placed in store. The pickles were produced under contract and were under warranty for 12 months; that is "to say, they were required to maintain their quality and. keep in good condition for not less, than 12 months after GOVERNMENT^-AS AGENTS v Those were the terms and conditions laid down by the British War Office in respect to pickles contracted for by the New Zealand Government, as agents. Unfortunately, owing to tfie inability of the War Shipping Administration to provide vessels to lift this cargo, the pickles were held in store for six months. i When shipping instructions were finally received an examination of the pickles was made, and it was found that extensive deterioration had occurred. As a result of further and more detailed examination of the pickles, the total quantity in store was rejected. The total involved was 15,299 cases. The property in the pickles had already passed to the British War 1 Office under the terms of the war- , ranty. The Government claimed against the Pioneer Manufacturing Company for a refund of the value of the pickles rejected. The company had so far failed to meet its obligations, and the matter of recovery was under discussion at present. It was possible the company would go into voluntary liquida- : 10Ii in. lr c near fut"re, when the extent of the loss would be determined. i> io a™ amount in dispute was The Minister said he had given a different story from that of the Leader of the Opposition, who had'conveyed the impression that the Government a in-Y ested £19,000 in the company An Opposition member: A loan. I M + k H ™-land said tne statement made by the Minister was a complete vindication of every .word he (Mr. Holland) nad said. ■