CASE FOR THE CITY.

Auckland Star, Volume LXIV, Issue 289, 7 December 1933, Page 8

CASE FOR THE CITY.

EVIDENCE CONCLUDED.

MAYOR ANSWERS QUESTIONS

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON, this day.

The case for the Auckland City Council against the provisions of the Waikato Water Supply Company, Limited, Empowering Bill was concluded last night before the Select Committee, which has now completed the hearing of evidence of the measure. Counsel's addresses, w'hich are being delivered to-day, are the final part of the public section of the inquiry.

Dealing specifically with clauses in the bill to which the "City Council took exception, Mr. J. Stanton, city solicitor, said that the company, if it operated, should have power to deal through the local bodies only. It was wrong that the enterprise should have the right to supply large consumers direct. Another possibility was that if Mount Albert, for instance, amalgamated with the city after the passing of the bill, the company could still supply anyone in that area, notwithstanding that Mount Albert was part of the city.

"Extraordinary Scheme." "The company has presented an extraordinary scheme," Mr. Stanton declared. | "The estimates of immediate consumpj tiqn arc 5,500,000 gallons daily, but the proposal is to construct a pipeline with a capacity of 15,000,000-gallons daily, capable, with pumping, of being brought up to 18,000,000 gallons. There is r.Q possibility of that additional 0,500,000 gallons capacity being required unless the company is going to supply in the city itself. In view of what has Lien revealed in these proceedings, the city feels anxious and doubtful of its position and as to what pressure will 1)9 exercised by a concern with a pipeline obviously designed for a much larger supply than it has on prospect at present."

In reply to a question, Mr. Stanton stated that the City Council sold water to the Harbour Board for 2/0, and the board retailed it to ships at 5/.

Mr. P. Fraser: The shipping companies charge the passengers accordingly !

Price Not Excessive. In cross-examination, the Mayor of Auckland, Mr. G. W. Hutchison, contended that the evidence had not shown that tlie council was charging too high a price for water. The attitude of the Mayor of Otahuhu collapsed before the knowledge that ■ his diffidence in negotiating with the city was based on his objection to the charge of £9 a year for a supply of 130,000 gallons in a certain case.

Mr. W. A. Bodkin, a member of the committee, suggested that if the council "got down to tin tacks" with the local bodies it could offer better terms than a company whose capital had not yet been subscribed.

'"That is all right in theory, but it won't work out in practice," replied the Mayor, /who added that if the company's contract price were an indication of the specifications on which the undertaking was to be constructed, by the time the local bodies were in a position to take over the concern, it would not be worth anything like the figure it cost. In the transport field, of which ho had made a close study, the city, in his opinion, had paid £.'ioo,ooo more than it should have for the transport undertaking. The same would happen with the company's undertaking unless it were watched and safeguarded.

Mr. E. IT. Nortlicroft: The bill safe guards that. ,'

Voluntary Arbitration,

Replying to Mr. A. E. Ansell, another member of the committee, the Mayor said he would be prepared to recommend the City Council to agree to voluntary arbitration for the fixing of prices to bo charged the local bodies for water. The negotiations entered into with the Devonport Borough Council were entirely independent of the introduction of the company's bill. The price was 1/ per 1000 gallons. The bill had not inspired it.

Mr. IT. M. Rogerson, counsel for the

suburban local authorities supporting the bill: Would that not have been a fair offer some years ago. The Mayor: I was not in office then. Mr. Rogerson: You have already intimated that you will not be standing for a.further term. 'The Mayor: I guarantee I won't be there- in a couple of years' time. (Laughter). You had better hop in and get it fixed while I am there. (Renewed laughter.) Replying to further questions, Mr. Hutchison said that very few local bodies out of the total were clamouring for a water board. Cross-examined by Mr. Rogerson, the Mayor said that in his opinion a profit of 50 per cent on the sale of bulk supplies of water was far too high. ■ Technical evidence given by Mr. A. D. Mead, waterworks engineer, closed the case for the City Council. Cross-examined. Mr; Mead said that two systems in the area would not be an economic proposition. Supply to the whole area from the present system would result in cheaper water to the consumers. The Waitakeres would provide the next development, and the catchment area there would be sufficient for the needs of the whole area until 1950. After that there could be an investigation as to whether additional source? should be considered in the Waikato or the Hunua Ranges.

The public sittings of the committee will conclude to-day with the delivery of addresses-by counsel.