LOCAL BODY INSURANCE

Press, Volume XCIX, Issue 29262, 21 July 1960, Page 12

LOCAL BODY INSURANCE

Opposition To Scheme Local bodies had a primary responsibility to administer, not to trade, and should not deprive organisations which * were big ratepayers of their legitimate business, said Cr. A. R. Guthrey at a meeting of the City Council. He was speaking to a suggestion that the Municipal Association should set up a municipal insurance company. The association advised that the Minister of Finance (Mr Nordmeyer) and the Government bad approved the promotion of legislation to enable the association to proceed with the setting up of an insurance company. It would be similar to that provided for county councils under the Counties Insurance Empowering Act

Insurance companies subscribed liberally to local body loans, and he understood they were prepared to contribute £2 million to the road tunnel loan, said Cr. Guthrey.

They were big ratepayers who provided good amenities and good city buildings. Insurance companies had the assets to meet any national dis•aster, he continued. Would a municipal insurance company, have the same? It was possible that if any earthquake devastated Wellington, Christchurch ratepayers might be called on to put up a new Wellington town hall. Christchurch carried a fair part of its own insurance, said the Mayor (Mr' G. Manning).

“Let the shoemaker stick to his last,” said Cr. W. E. Olds, who thought the council was foolish to catry some of its own insurance. It was not fair "to pick the eyes out of the business.”

The proposal was put to the council for discussion, and no action was taken.