OTIRA TUNNEL.

Wairarapa Age, Volume XXXI, Issue 10717, 30 October 1912, Page 5

OTIRA TUNNEL.

RWORT OF CO.MMTTTE?;.

(~V Telegraph—Press A»twiation.)

WELLINGTON, Last Night. In the House ol' Representatives this afternoon, Mr Lee moved the adoption of the grant brought down by tho Committee .set up to .consider the Otiru tunnel petition, presented on behalf of Messrs McLean Bros. After referring to the conditions of the contract, audi the loss sustained by tho contractors, Mi- Lee said the estimate of the Public Works Cepartment was entirely at sea. Ifc was absolutely impossible to carry out the work for the money. Tho contractors had estimated that it would cost from £130,000 t o £140,000 over the amount of their tender to complete the work.

Sir Joseph Ward contended that it would be unbusinesslike to cease work. •Something like £1,800,000 had been spent already on the Midland Railway, including the expenditure by the old company. He averred that the non-prosecution of the work would amount almost to insanity. The troubles which arose in the tunnel amongst the men engaged' on the work was due to the conditions under which they had" to work. If the contractors had lost £33,000, as had been shown, he asked whether anything would bo gained to the country by compelling them to go into liquidation. He thought the contractors should be relieved nv the lines of the Committee's report, and the work carried out by ffiie Government. Mr .John Ballard said the Government Engineer's original estimate should have been £700,000, instead of £500,000. The contractors had done their best to carry out the- contract, but were hampered by the employees. The contractors were now absolutely ruined, and' the House should be merciful, and give them £15,000 or £20,000 ancl__cry quits. After further the STon. W. Eraser said the whole question was a matter for the Cabinet, which would do its duty to the country. Mr McKcnzie favoured the return of the £SOOO deposit to tho contractors, and their release from'the surety of £25,000.