City Refuses Fight Over Water Bill

Sun (Auckland), Volume II, Issue 410, 19 July 1928, Page 1

City Refuses Fight Over Water Bill

OPEN TO SUGGESTIONS LETTER TO OUTER BODIES If the suburban local bodies, after full consideration, decide to fight the passage of the Auckland Water Bill, the City Council will probably let the Bill drop. The council does not fee! justified in spending the money the fight would involve. This decision has been conveyed in a circular letter to all the local bodies concerned. At the same time the council offers to make any reasonable amendment considered necessary by the outer bodies. The main points of opposition concern the “reasonable profit” to the council on any supply to outside bodies, and the suggestion that the proposed Bill would give the city special rating powers over the whole area concerned. The letter, in replying to these points, remarks that the council is at present under no obligation to supply any outer area with water, but if it does it can make its own price. The arrangement has worked satisfactorily in the past and the legislation proposed is characterised as a bona fide attempt to meet the decision of the Water Commission and prevent the possibility of trouble in the future. NO RATING POWER The council points out that no local body is bound to take water, but any dispute over price if it does is subject to independent arbitration, which removes any possibility of unfairness. The council is bound to provide water on the terms decided on by the arbitrator. Referring to finances, the letter points out that power to raise loans without polls is necessary in view of the possibility of the council having to supply water for which the city ratepayers refused a necessary loan. The letter remarks: “The suggestion has been made that under the terms of the Act the council might be able to charge its waterworks loans or levy special rates therefor on areas outside the city. The council cannot see how such an interpretation could be placed upon the clause, but the council has no such intention or desire and is prepared to agree to any alteration of the clause that Parliament may think necessary in order to make this clear.”