COSTLY MISTAKE

Otago Daily Times, Issue 26617, 13 November 1947, Page 8

COSTLY MISTAKE

WAR ASSETS REALISATION HEAVY DAMAGES PAID Bf GOVERNMENT Parliamentary Reporter WELLINGTON, Nov. 12. Damages amounting to £65,000 have been paid by the Government on a claim against it for alleged breach of contract arising out of a transaction with the War Assets Realisation Board for the purchase of scrap steel held at Woburn. In addition, the Government has paid £IO,BOO for cancellation of one of the charters which had been engaged to lift the scrap metal. This makes a total of £75,800. The Minister of Finance, Mr Nash, gave these figures during consideration of the Supplementary Estimates in the House of Representatives to-night. He explained that the Government was informed that there were 45,000 tons of scrap steel at Woburn, and later was told there would be no difficulty in supplying from 65,000 to 75,000 tons. Arrangements were then made to dispose of 45,000 tons, which were sold in a 25,000-ton lot, with the right to take 20,000 tons more. The corporation which contracted to take the steel chartered two ships to take the 45,000 tons, but when it was found that there were only 9000 tons one ship was enough. The Leader of the Opposition, Mr Holland, asked if the man responsible would be in a position to make the same mistake again.

Mr Nash: Not again. I do not know whether that will mean we 'will have to dismiss him.

Mr Holland: It was a costly mistake.

Mr Nash: Yes, very costly. Mr Langstone (Govt., Roskill): It is not the only one they have made.