Thank goodness your Dad's Lurcher is showing signs of improvement. So very glad to hear it.
As for the pound and the council, I'm fucking fuming with both. The pound manager is crying crocodlile tears I'm afraid... she will NOT "have to" put any dog diagnosed to sleep, and if she does she will be making decisions on economic grounds and NOT compassionate ones unless with respect to a dog/dogs who are genuinely too ill to recover and are suffering. If she chooses not to isolate any Parvo-infected dogs and not to do her utmost to treat them she is choosing to kill them. Likewise if Parvo is found she should go into complete shutdown, no dogs in or out for a quarantine period, but reading what you've said above and going on past personal experiences of that particular pound I think I might be forgiven for exercising a bit of cynicism there too.
The council are, of course, wholly resposible for stray dogs in law and the pound works under contract to them. Therefore the council are fully capable of doing the decent thing and vaccinating dogs as they arrive. The reasons why this doesn't happen are all financial -
A. That the council's sole responsibility is to provide a minimum of basic care (food and shelter) for the dogs for 7 days or for someone (ie the pound concerned) to do so on their behalf. The pound's argument will be that they don't get paid enough to cover vaccs and the council's will be that they can't justify any more money for the pound dog contract.
B. This pound, despite it's claims to the contrary, DOES kill dogs. I know that for a fact... and therefore they ain't gonna spend a penny on vaccinating a dog which they may end up paying a further vet bill for seven days later when they kill him.
C. The manageress could undertake to vaccinate the dogs herself using the money paid to her by the council for each dog's 7 days care. I see no legal reason why she would have to defer to the council to do so. She chooses not to, because it affects her profits.
This needs to be escalated to the Director of Environmental Health, the local councillor, local MP and failing any joy, from them the press, if possible by email so you can copy all correspondance to animal rights groups. :)