Bulk Buying By County Councils

Northern Advocate, 13 October 1949, Page 7

Bulk Buying By County Councils

WELLINGTON, Thu. (P.A.)— During consideration in the House last night of the New Zealand Counties Association Bill, Mr R. M. Algie (O Remuera) drew attention to the powers conferred by the bill enabling the association to engage in bulk buying and similar activities on behalf of counties. He asked if the Counties Association would be in a position to com-pete-with private enterprise on unduly favourable terms. Mistakes made by individual county councils could be sheeted home by the ratepayers to those responsible, said Mr Algie, but what remedy would there be for errors in the trading activities of the association? What would happen if losses were incurred? The Counties Association could easily become a tremendous pressure group if it embarked on trading activities. The Minister of Finance (Mr Nash) said the intention of the bill was that counties, through their association, should cooperate to buy plant required for council activities. The association had expressed its dpsire for the privilege of buying in bulk, and he could see no grounds for fearing the creation of a pressure group. Mr J. T. Watts (O—St Albans): Will they get an import licence? Mr Nash: They will have the same opportunity of importing as anyone else. The Minister said local bodies had combined to buy on the most economical basis possible. It was preferable to granting privileges to individual county councils. The bill was passed.