MUNICIPAL TRADING.

Taranaki Daily News, 8 February 1921, Page 4

MUNICIPAL TRADING.

THE ELECTRICAL DEPARTMENT. BOROUGH COMPETITION OPPOSED. A deputation representing all the retail electrical traders in New Plymouth waited on the Borough Council last night, asking that the council should withdraw from ' the house-wiring and fitting business, on the grounds that private, enterprise was being greatly affected by the borough’s competition. Mr. C. Banks said that the increasing efforts which were being made by the council were interfering seriously with the businesse if the retailers. Coming at a time when the supply of power was short (resulting in a good number' 1 of applications for connection being turned down) it would mean that many in the business would not be able to carry on if the council continued its operations. A great deal of the best jof the jobs were being picked out by the corporation, and the public seemed to have the idea that the council were doing the work much cheaper than private firms would charge. He informed councillors, however, that there were no overcharges by those engaged in the retail business.

The Mayor: Do you say that we are undercutting you ? Mr. Banks said that, not hiving a statement of tho council’s trading account, they could not say this, but the idea amongst the public was that the council’s charges were enormously lower than the private firm’s. Those engaged in the business; however, were quite willing to have an examination of their books made to show what percentage was being obtained out of the business. The speaker cited the actions taken by the. Wellington City Council and the Gisborne' and Stratford Councils, in cutting out the municipal retail business when they found that the community was being efficiently catered for by private contractors. Cr. F. J. Hill pointed out that the Christchurch City Council was engaged in the wiring business. Mr. J. Boo; who was a member of the deputation, suggested that the opinion of the Builders’ Association should be obtained on the subject, remarking that this might be of help to the council. He understood that if the municipal competition continued some of the traders would have to close their businesses and leave tho town.

The Mayor informed the deputation (hat the council did not undertake any work at cost, and made a profit on th'-? jobs just as a private contractor did. The. decision of the council was d - ferfed till next Monday night, the elec trical traders to secure the views of the Builders’ Association in the meantime, and place same before the council.