DELAYS AT ARAPUNI

Sun (Auckland), Volume I, Issue 194, 5 November 1927, Page 5

DELAYS AT ARAPUNI

Government Not Afraid PREPARED TO FACE LITIGATION (THE SUE'S Parliamentary Reporter.) WELLINGTON, Friday. IDO ask Parliament and the country to believe we have the country's interests at heart, and any suggestion to precipitate negotiations will not be in the country’s interests, if it comes to litigation, and I hope it will not, we are not afraid. We know that we are in the right and we can meet reasonable conditions. I ask the House not to press us at this stage to put facts and figures before the country, because I do not think it would be in the interests of an amicable settlement.” With these words the Prim*Minister, the Rt. Hon. J. G. Coates, concluded a statement in the House of Representatives this evening regarding the Arapuni hydro-electric power scheme. Mr. Coates said that the Government had every confidence in its engineers and legal advisers and was firm in its intention to safeguard the interests of the public.

Coates said that the remarks /the engineer-in-chief in the “ “ Works Statement respecting pubic i had created some uneasiness - lra ne those directly concerned with among 1 Before the contract was tW certain specifications covering a le 'v wde field "ere made out In mber one contract there was the dam " Conversion channel, spillway and s 'lV Considerations. Investigations his*been made respecting the dam and b CuCnel had been taken beneath the * tu River and explorations made thanks for certain distances. When this was done contractors were Exactly what had been done and rhat was necessary to be done, so that •mv could submit a lump sum price. P. Fraser, Wellington Central: Uui the Government submit any tests The usual terms and mnditions prevailed that if it were found that certain things were not as represented it could be arranged by mutual agreement. Mr Fraser: This did not relieve them of*finding out.the strata upon which they were to work?

CAN BE CARRIED OUT Mr Coates: No; the contractors had had men on the ground for some time, had other contractors. I am informed by the engineers that, so far, the contractors have not revealed any strata other than that which might have been expected. The Government did not at any time say what was underneath. There has been a suggestion by the company that the control station should be erected a little distance away from the power house, but the original specifications provided for the control station and power hourse in one. The Government is advised that the contract as let can be carried out. If anything unexpected is revealed then we are always willing to consider any proposal that might be made, but as to what proposals have been submitted to the Government I cannot say, because things are in the hands of the AttorneyGeneral and solicitors for the contractors. They are discussing the legal aspect of the case and we hope we will be able to make an arrangement. We are anxious to meet the contractors, but on the other hand we have fixed in our mind the interest of the public. The loss is going to be Heavy for the Government. We cannot supply power to contract time and we have had to go to great expense that would have been avoidable had Arapuni been finished up to time. We are thoroughly alive to the position. We have at our disposal competent legal advice and competent engineers, and I have sufficient confidence in them to back them up. We have to make certain that we are not unfair to anyone. * \ PREPARED TO BE REASONABLE In reply to Mr. Wilford, Mr. Coates said that the specifications pointed out rttiy where the power house was to go. Certain things were assumed. If it I y ere found that foundations were such •hat no reasonable man could execute the specification the Government was prepared reasonably to meet any in- - cost. It was purely a matter of k J was a fair thing. “On the other ■and. continued Mr. Coates, “we have “most careful in negotiations of I”,, “ nd - We have been quite frank ™ the company, and they in turn are anxious to get all they can, which is not unnatural. As far as part two of the contract "? ncer " ed ' the onus is on the cons '? carry il out. It was laid inditi? the , specifications, and in the thatch ~ S ,° f contr act. and I say now irt y?k Sta 0,1 them to carry out their h /,^ on * r . aot - K there are un,lol m« di(f ieulties the Government is S££* an and it Will help to meet »-a?had a hl! added that definite lieadto Lv that n made> and he was able C t | a ' mn!t of the difficulties had ahead d ay - and work would go chance** 1 * }° b , hopeless? Is there a , „ of it be ing finished this going to h» Xt year 7 When are we Uke'v m K rmPd "hen the thing to be settled?” qu ations*™ man , y other pertinent in th. e ir asV;ec * °f the Govern- — "©House of Representatives

to-day respecting the deadlock which has occurred between the Government and the contractors for the construction of the power house at the Arapuni hydro-electric works. In addition to these questions, some very direct speaking characterised a discussion upon the merits of the case which the Government is now trying to settle with the English firm which holds the contract. MR. WILFORD OPENS FIRE It was Mr. T. M. Wilford, member for H.utt, who first opened fire upon the Government this afternoon, and who fired a battery of carefully-pre-pared questions at the Minister of Public Works, the Hon. K. S. Williams. lie claimed that the statement of the chief engineer to the department conveyed fifty times more eloquently than he could describe it. the seriousness of the position at the big works. It meant that huge sums of money in interest and sinking fund were lost, overhead charges were increased, and the revenue of power boards which had contracted for power would be diminished. "If there is a dispute as to the specifications of the contract and the rights of the State.” he said, “how long is the Government going ,to be before it calls in outside experts to decide —if it is an expert question? If the Government is going to wait till the contractors take some action against them, or if they sue the contractors for damages for the noncompletion of their contract, highly technical experts will be required. I hop© there will be no litigation between the engineers and the State, but if the engineers on both sides differ the State must call in someone from among the best, in the world. If they decide that experts have to he called in, then I ask that there be no delay.” One of Mr. Wilford’s chief questions was: Ho the specifications for the power house prescribe the actual conditions? Was any grave mistake made by those who inspected the dam site? Did they assume that because the dam sito was right, and that the power house site was adjacent, that the power house site would be the same? Were any soundings made by the Government’s or the company’s engineers? Hid they in one case go down 48 feet in one hour? Hid they on another occasion go down 17 feet in an hour, and still another occasion 11 feet in an hour? Is it not a fact that the power house site is absolutely impossible? Is this going to put any extra expense on the country? Who investigated the power house site? Mr. Wilford asked that the Minister should take steps to bring this impasse to an end. RAISING DOUBTS

Mr. W. E. Parry, Auckland Central, said that if Mr. Wilford’s questions embarrassed the Prime Minister and the Government, £he report had certainly invited them. He understood that the Government was of the opinion that the site on which the power house was to be constructed, when the tender was let, was safe, but on the other hand the company would not guarantee it. Was the Government prepared to accept the responsibility for the safety of the power house if it was constructed on the original site selected?

Mr. Parry added the suggestion that in future tenders for big contracts should be limited to New Zealand, which had engineers capable of carrying out the work equally as well as those of other countries. The Leader of the Nationalist Party, Mr. G. W. Forbes, qould not understand how it was that the people of Auckland, who were waiting for the completion of the Arapuni works, had been so silent about the delay. He could not agree that big contracts should be left to the Public Works Department, which had spent £2,243,000 on the Mangahao scheme, after only £1,500,000 had been .estimated. Now it appeared that proper investigations had not been made before the Arapuni contract was let. The specification given by the Public Works Department seemed to have been of a very incomplete nature, to say the least of it. It seemed there had been a certain amount of slipshod work.