Local Bodies Fear Private Enterprise

Sun (Auckland), Volume III, Issue 758, 3 September 1929, Page 9

Local Bodies Fear Private Enterprise

PERSONNEL OF COMMITTEE CHRISTCHURCH APPREHENSIVE. Fears that private interests are seeking to diminish the powers of local bodies engaged in the transport business are held by the Christchurch Tramways Board. This authority fs also apprehensive that the measure of protection which present legislation has afforded such local bodies is being broken down. Suggesting co-operation in approaching Parliament, the board wrote to the Transport Board this morning with a view to unity in pressing for additional representation of local bodies on the new Transport Advisory Council. The Christchurch board pointed out that local bodies had one representative, the Mayor of Wellington, and lie should be supported by others. “As you know,” the Christchurch board states, “a strong case could be made for a continuation of this protection from the point of view of the general public good. The duty of a local body is to run its services entirely in the public interest, and not for the production of dividends, maintaining weak services, which a private company would not touch. The maintenance of these weaker services makes for the general good by distributing population over a wider area, thus avoiding congestion and high rents in the centres. “Private enterprise, If given a free hand, would only take the profitable routes, leaving the local body to do the best it could with the poorer routes. Other supporting points could be mentioned if necessary, such as the protection of the capital which the people have through their local bodies invested in the transport business.

“There is a probability that no opportunity may be given to local bodies to present their views to the Advisory Council, and I am directed to ask you to be good enough to watch the interests of the local bodies in these matters when the report of the council has been published.” Mr. E. H. Potter said he would do all in his power to bring before the House the claims of private enterprise in the outer areas. “This question was very fully discussed by the last Municipal Conference,” said Mr. L. E. Rhodes. “J think it is quite necessary that we should have further representation. We must safeguard the interests of local bodies.”

Mr. A. J. Entrican suggested Mr. G. Baildon, a member of the board, and Mayor of Auckland, should co-operate with the Mayor of Wellington. The difficulty about private enterprise was that services which did not pay the board would not pay private persons and residents might be left without services. He thought the Christchurch Tramway Board had taken the right step because there was no doubt the tramway systems of the Dominion were not properly represented. On the motion of the chairman, Mr. J. A. C. Allum, it was agreed to support Christchurch. A suggestion by Mr. F. S. Morton that the board should be prepared to give evidence before a Parliamentary committee was also approved.