MUSICIPAL TRADING.

New Zealand Herald, Volume XLIII, Issue 13214, 27 June 1906, Page 5

MUSICIPAL TRADING.

AN INTERESTING LEGAL OPINION.

[BY TELEGRAPH.—OWN RESPONDENT.]

Wellington", Tuesday. Ax interesting opinion from the solicitor to the Municipal Association of New Zealand, as to tho power of a municipal body to sell coal, was received by tho Petone Borough Council. In his opinion a statutory power given to a_ municipal corporation to manufacture and sell gas would not enable the Borough Council to enter into the business of the sale of coal to the residents of the borough. To do «o would be to engage in an undertaking having no necessary connection with the manufacture of gas, or, in other words, in municipal trading not. contemplated by the Municipal Corporations Act or any other general law. The case \v;ts clearly distinguishable .from that of the sa.le of coke. The power to deal in coal in the way desired by Petone would have to be given to a municipal council in very clear words. Where the Gas Act gave the council power to " buy and sell any material* requisite for or incidental to the manufacture of gas," as in section 9 of the Petone Corporation Lighting Act, 1893, it was plain that the power was given. Coa! was something ''requisite" for the "manufacture of gas.' and the Council was accordingly authorised to buy and .'•'ell it. .