Cite: http://nla.gov.au/nla.news-article12059369
No comments yet.
No corrections yet
RESIGNS FROM
CABINET
SEN. MCLACHLAN
SURPRISE STATEMENT
IN HOUSE
COMPANY'S CONTRACTS
CANBERRA, Thursday. - The Postmaster
General (Senator McLachlan) announced in the Senate to-night that he had tendered his resignation from the Federal Cabinet to the Prime Minister (Mr. Lyons).
Senator McLachlan said that his resignation had been
prompted by the action of Mr. George Lawson (Lab., Q.) in giving notice in the House of Representatives of a question relating to his association with the directorates of companies, which entered into con- tracts with the Postal Department.
The announcement, which was made unexpectedly at
the end of a quiet sitting, caused a sensation in the Chamber. Senator McLachlan, who has been the leader of the Government in the Senate, spoke with great feeling.
LETTER TO PRIME MINISTER
Senator McLachlan emphasised that In the whole course of his service as Postmaster-General he had not at any time had referred to him or in any way influenced any departmental contract with any company with which he was
associated.
In announcing his resignation, Senator McLachlan read the fol- lowing letter which he had sent to Mr. Lyons:
"My Dear Prime Minister,-On the notice-paper of the House of Representatives to-day I find ti question by Mr. George Lawson making inquiries as to the com- panies of which I am a director, and furthermore, asking if the de- partment of which I am at present in control enters into contracts with some of those companies.
Public Tenders .
''I have made no secret of the fact that I am a director and chair-
man of directors of the Hume Pipe i Company of Australia Ltd. The supply of materials for post-office requirements is arranged by in- viting public tenders, which, in
addition to being advertised in the Commonwealth 'Gazette,' arc brought under the notice of Arms from whom It has been customary to receive tenders.
"On receipt of tenders the details are scheduled and analysed from the point of view of determining those which will provide the most economical supply of the material needed to meet the department's requirements. They are then examined by a tender board, con- sisting of three of the most highly placed officers of the department, who submit a recommendation with the necessary details supporting their views to the director-general.
"The director-general reviews the basis of the recommendations, and the extent of the orders to be placed, and issues the necessary in- structions to the chief inspector of stores, who then executes the con- tract with the successful tenderer.
"It is not the practice to bring these matters under the notice of the Postmaster-General, excepting in unusual circumstances, such as
for instance, the placing of sub- stantial orders with foreign firms. I have never been consulted in re- gard to the placing of contracts for pipes or ducts with firms with whom I may be associated, or with any others, nor have I any depart
Senator McLachlan.
mental or personal knowledge of' such contracts. |
"Only Course Open"
"Having regard to the suggestion underlying the question that I may in sonic obscure way have in- fluenced the department, I feel that one course only is open to me, and that is to tender my resignation as Postmaster-General.
"This I do with some reluctance at such a time, but the protection of my honour and the honour of the Government against any in- sinuation that underlies the ques- tion on the notice-paper leaves no other course open to me, and appears to be the one I should adopt in the circumstances. I shall carry on the business of the Senate and of the department until I hear from you."