W & H Department And Lae Contractors

At Loggerheads

From Our Own Correspondent

LAE, April 30.

TO counter any comments on the lateness of payment of money owed by the Department of Works and Housing, a spokesman for the Department said, towards the end of April, that pay ments to contractors were more up-to iate than at any other time and that ‘all claims are being met, where possible, vithin 14 days.”

However, at the end of April the Director of Works informed contractors ;hat no money was available and that the illocation of funds had been exceeded.

This is not cheery news for local Lae xmtractors, many of whom have claims or payment going back over past months. \t the present time, as stated in April 3 IM, no regular contractors are offering or tipper truck hire at the reduced rate >f payment arbitarily decided upon by he Department some weeks ago.

At a recent conference between the lepartment and contractors, the Director >f Works and Housing said that no higher ate would be available from the Depart tient, that no regular work would be iffering during the next six months and hat no new works could be started until resh funds became available. At the ame time, however, it is rumoured that he Department is putting owner-drivers ff work on the Wau-Labu road but in orming them that they can get work in <ae at 22/6 per hour—that is, 2/6 per hour sss than the rates they have been getting.

As the Lae contractors who are with olding their trucks are in a position to

supply heavy plant as well, the move by the Department to replace them by a few owner-drivers is not likely to bring the results expected.

This cheese-paring by the Department is not peculiar to Lae. The Department is attempting to get work done at cut rates

in Rabaul and Port Moresby also. A spokesman for the Department stated recently that contractors had been “grossly overpaid’' in the past although contractors are ready to support their claim that it is not a paying proposition for them to hire out trucks under 25/per hour. Individual trucks of fleet owners may be worked only somewhere between 24 and 50 hours in a fortnight but the owners are compelled to pay wages to drivers, mechanics and native labour for the full period in order to retain their services. When the Department has used

its own trucks it has not been able to run them at anything approaching the rates offered.

Tenders are supposed to be called for all work under the control of the Depart ment but in the past much of the contract work has been farmed out without tenders being called at all. This habit reached such a pitch recently that the local sub branch of the RSL asked Port Moresby that the policy of the Department be clearly defined in the matter. The stock Port Moresby phrase “Where possible” formed the basis of the Department’s reply.

The time seems to be overdue for a complete investigation into the operations of the Department. In the meantime, im portant road works in Lae township are being held up as contractors with heavy equipment are planning to withdraw it.