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Wednesday, 7 December 1927


SenatorFINDLEY asked the Minister representing the Minister for Home and Territories, upon notice -

1.   Is it a fact that the contract for transport services in the Federal Territory entered into by the Federal Capital Commission with the approval of the Government has fallen through ?

2.   Is it a fact that the contract was let to a motor salesman for ten years and that no companyhas materialized since the letting of the contract?

3.   Was any penalty provision inserted in the contract fornon-fulfillment of it?

4.   Is it proposed to call fresh tenders, or does the Federal Capital Commission, with the approval of the Government, now intend establishing a community-owned transport service within the Territory, as advocated by the Labour Party ?

Senator Sir WILLIAM GLASGOW - The answers to the honorable senator's questions are as follow : -

1.   The commission has cancelled the contract owing to the inability of the contractor to commence the service, as stipulated, on the 5th December, 1927.

2.   As a result of public tenders, a contract to conduct a bus service, under certain conditions, for 10 years, was entered into with Mr. E. T. Holmes, who had been engaged in motor sales business. The contractor represented his intention of forming a company to take over the contract if approved later by the commission. It is understood that there has been difficulty in forming the company for financial reasons.

3.   No; but the contractor was given to understand that, in the event of failure to commence the service on the date arranged, the failure would be a ground for immediate cancellation of the contract.

4.   As the project was evidently not sufficiently attractive to induce the public to finance the proposed enterprise, the Federal Capital Commission is arranging to establish and maintain a bus service under its own control.

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