Lost Nsw Contracts `factor In Collapse'

Newcastle Herald

Saturday January 29, 2000

Scott Tucker

NATIONAL Textiles chief executive Derek Hodge has blamed the loss of State Government contracts for being instrumental in the collapse of his company.

For 20 years National Textiles had enjoyed continuing work to provide fabric for police uniforms, but late last year its two-decade run came to an abrupt end when a Victorian company won the contract.

Mr Hodge said National Textiles had been dumped for a $6000 saving and questioned the ability of the rival company to meet State Government specifications.

`They don't have facilities to finish the fabric and I'm led to believe that some 14 or 15 weeks after winning the contract they have still been unable to produce a satisfactory sample,' Mr Hodge was quoted as saying.

Yesterday Mr Hodge expressed sorrow at the plight of his workers.

`I feel very, very sad indeed,' he said.

Hunter-based Senator John Tierney said he wanted to see government contracts decided on more than commercial terms.

He said the community and economic impacts of a contract should be taken into consideration under `regional impact statements'.

`It should not be pure economics because the community and social costs can be too high,' he said.

But the State Government, while admitting the $300,000 police uniform contract had been lost by National Textiles, denied a second contract for SOCOG bed linen had been contested by the company.

The contract was won by Killarney Linen Pty Ltd of South Australia and another company, Hospitality and Healthcare.

State Public Works and Services Minister Morris Iemma said National Textiles had not tendered for the $2million SOCOG contract.

`They didn't put in a bid even though they were provided with tender documents and offered the opportunity to do so.' ? Scott Tucker