UNFAIR COMPETITION ALLEGED.

Press, Volume LXVIII, Issue 20731, 16 December 1932, Page 16

UNFAIR COMPETITION ALLEGED.

TO THK EDITOR Of FKXS3 Sir,—l was not surprised at the reply of Cr. E. 11. McCombs to my letter of protest concerning the unfair trading of the Municipal Electricity Department. When the municipality deliberately enters into competition with ratepayers, it is surely high time for a protest to be lodged. I maintain that an important principle is at stake, and Cr. McCombs's statement that goods sold by the Municipal Electricity Department are sold at a reasonable prolit is no justification at all for the existence of such trading departments. The department has been successful in making handsome profits from tho sale of power; in view of this fact, surely it is not necessary to extend its activity into tho selling of all kinds of electrical appliances. If a serious loss is made by the private trader owing to the competition of the Municipal Electricity Department, would the City Council favourably consider a remission of rates payable by tho trader to the City Council? The answer is certainly, No. Cr. McCombs inferred that I stated tho Municipal Electricity Department does not pay rates. If Cr. McCombs will read my letter again, she wilt surely admit that I did not make that statement. What I did state was the Municipal Electricity Department is exempt from Government income taxation. I reiterate that the principlo of the Municipal Electricity Department competing in business against Citv ratepayers is obviously unfair, and quite iinjustified.—Yours, etc., S. F. MARSHALL December 15th, 1932.