COUNTY COUNCILS

Otago Daily Times, Issue 27210, 13 October 1949, Page 7

COUNTY COUNCILS

CO-OPERATIVE BUYING BILL GENERALLY APPROVED PA WELLINGTON, Oct. 12. The Bill was welcomed by county councils particularly for the provision it made in regam to urban areas witnm county boundaries, said the Minister of Internal Affairs, Mr Parry, in the House of Representatives tonight, when he moved the second reading of the Counties Amendment Bill. Mr J. N. Massey (Oppn., Franklin) urged the creation of a roading account into which he suggested should be paid all revenue from the petrol tax and Customs duties on motor machinery. From that account amounts could be allocated to counties to enable them to carry out badiyneeded roading programmes. Mr' A. C. Baxter -(Govt., Raglan) said that only if and when local bodies failed to take the necessary action, should the Government interfere in county affairs in the interests of the settlers. There would be inequalities between one county and another in resources and responsibilities, according to the pattern of development in the various parts of the country. The Bill was a good one, and the legislation would be administrated sympathetically both by the Government and' by the counties in the interests of rural areas.

Mr W. H. Gillespie (Oppn., Hurunui) asked if the Minister had thrown out suggestions that' this Bill be asked for, or had the counties requested it on their own account? He also wanted to know if the Bill would play any part in the plans the Minister had made some years ago for the amalgamation of local bodies, The Bill was. however, a good one, and only good could result from it. Mrs Hilda Ross (Oppn., Hamilton) said she had had messages expressing concern at the powers conferred on county councils to undertake activities which were normally performed by private enterprise. She asked if counties were to enter business in certain directions on terms of fair competition with private firms, or would the interests of the latter be unfairly prejudiced?

The Bill was read a second time, put through committee and passed. During consideration in committee of the Bill, Mr R. M. Algie (Oppn., 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 positi®i to compete with private enterprise on unduly favourable terms. To give the association powers • not permitted to individual counties was anomalous. Mistakes on the part of individual county councils could be sheeted home by the ratepayers to those respon-. sible, but wnat remedy would there be for errors in the trading activities of the association? What would happen if losses were incurred? Mr Algie said that 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 thht the counties, through their association. should co-operate to buy plant required for council activities. The association had expressed its desire 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 (Oppn., St. Albans): Will they get an import licence? Mr Nash: They will have the same opportunity of importing as anyone else.

The Minister said that the 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.