Lae's Red Tape

Slow Payment of W. and H.

Accounts

Lae, Ng, May 30.

A DISCOURAGING feature of the work of the Department of Works and Housing is the delay in making payments for services rendered by con tractors and business firms.

So serious has the position become that one bank manager refuses to recognise Departmental authorities for the per formance of services as a backing for limited overdrafts, on the grounds that there is too much uncertainly as to when payment will be effected: As the majority of work in this area emanates from Departmental sources— referring to the Commonwealth Depart ments —this means considerable em barrassment to many carrying out work for the Departments, in that, whilst they are compelled to pay their own way, they are waiting for periods extending into months before payments are made.

The main obstacle to speedy settlement is the fact that Works and Housing accounts from Lae have to be forwarded to Port Moresby Office for payment, which is ultimately made through the Treasury, Port Moresby. No facilities are provided within the Department for the payment of its accounts in Lae, although a Sub-Treasury appears to be functioning normally here. Payments for similar services in Rabaul are made by the Rabaul Sub-Treasury on the spot.

One case in particular had reached breaking-point and a special trip to Port Moresby, a cost of roughly £3O, was made in an attempt to receive moneys overdue nearly two months.

It is hard to fit this position into the statement by the Minister that his Government will encourage private enter prise. The existing system is strangling private enterprise.