CONTRACT RATES

Hawke's Bay Herald-Tribune, Issue 73, 13 April 1937, Page 10

CONTRACT RATES

-Press association.)

Alteration to Local Body Powers NEW CLAUSE IN BILL

(By Telegraph-

AUCKLAND, Last Night. Arrangements have been made by the Goverrunent for a clause to be insetted in the Munilcpal Corporations Bill whereby power will be given to local authorities to revise their contract rates where they are agreeable to do so, stated a letter received by the general committee of the Auckland Manufacturers' Association from Hon. D. G. Slillivan, acting on behallf of the Prime Minister. It was stated that the pending legislative authority for this action would be made retrospective in order to overeome the difeculties encountered in securing the sanction of the COntroRer and Anditor-General tp such a reviaidn of prices. The letter was in response to representations by the association for an extension of section 44 of the Ilnance Act to include contracts for CEe sale jf goods. The section provides for a recission or variation of existing contracts for the execntion of works where the cost of carrying out fhe works is increased by reafion of alterations to the law, As a reault of the Government's arrangements, stated Mr. Sullivan, if local authorities were prepared to increase contract prices in paTticular instances they could proceed to do so knowing that their action would later be validated by legislation.