REQUEST REFUSED

Waikato Times, Volume 124, Issue 20820, 2 June 1939, Page 8

REQUEST REFUSED

GOVERNMENT SUPPLIES OWN WORKSHOPS PREFERRED ECONOMY OF OPERATION (By Telegraph.—Press Association) WELLINGTON, Friday The Government is unable to accede to the request that the Railway Workshops should be required to tender in competition with private enterprise for the supply of certain equipment for liovernment departments, states the Minister of Railways, the Hon. D. G. Sullivan, in a letter to the Associated Chambers of Commerce in reply to a recent communication. The Government having already derided, states the Minister, that railway workshops were to be utilised for the supply to the Government of requirements which the workers could conveniently carry out, it would, he thought, be clear to the executive that no good purpose would be served by the calling of tenders. The Government realised, of course, that the preparation of tenders incurred certain expense and took no little time, and it was desired to obviate that in the interests of outside firms when the decision was made to supply certain requirements from the railway workshops. In regard to the reference to sound costing, the Minister said he desired to give an assurance that the railway workshops were operated on the most economical basis. The taxpayers were fully protected under the Government’s policy, as any profits made by the railway workshops were reflected in the amount, returned to the consolidated fund by way of interest on railway capital expenditure. He added:

“The Railway Department places quite a lot of work with private manufacturing concerns. That policy will be continued whenever it is desirable.”