DEVONPORT ELECTRICITY.

Auckland Star, Volume LVII, Issue 152, 29 June 1926, Page 10

DEVONPORT ELECTRICITY.

CONTROVERSY SETTLED.

TO AMALGAMATE WITH BOARD TELEGRAM FROM PRIME MINISTER As a final sequel to many contentious discussions the Devonport Borough Council last night, by a vote of six to four, decided to transfer their electricity undertaking to the Waitemata. Power Board, on the terms of the agreement as previously ratified by the beard. At last Wednesday's meetinc, after a stormy controversy between the Mayor and Mr. Hislop the council decided that a special meeting should be held to finalise the matter, on the basis of the latest figures submitted by Mr. Lamont in favour of the council retaining a separate electrical identity and purchasing a bulk supply of current from the Waitemata Power Board. The business was introduced last evening before a large gathering of ratepayers by the Mayor with a formal resolution that the borough of Devonport should not amalgamate with the Waitemata Power Board. In support thereof Mr. Lamont traversed the main lines of his objection to the amalgamation. He maintained that the long and unproductive lineage of the Waitemata Board's area was a serious factor against the financial success of tile undertaking, and that as the striking of a rate was not the board's policy the consuming of current must meet all liabilities. He contended that Devonport's closely massed population would therefore bear an undue financial burden. He believed that buying in bulk w-ould be the best business proposition for the borough. The figures already published were read by Mr. Lamont in support of his contention. The proposal was seconded by Mr. 8. Walker, who stated that the interests of the borough demanded protection. !He was not in favour of Devonport being the productive appendage of an unwieldy and unproductive area. Mr. J. Hislop put the negative side of the question. The Mayor's figures, he said, were based on the assumption that Devonport would be permitted to obtain bulk supply at .3 of a penny on Government rates. In the absence of any official assurance to that effect he believed that such a favourable price was unlikely. It would more probably be much higher, in which case the Mayor's estimated profit would disappear. Further, if the council maintained control and had to reticulate the whole of the borough to receive A.C. current and to provide meters for all consumers further capital would be required, the interest charges on which would turn any anticipated profit into a deficit unless a substantial increase in the price of current was made. There was also the question of the existing D.C. motor owners in the borough who would probably demand compensation at the chancre over. The main issue wag the redemption of the electricity loans and their unfavourable position as far as sinking fund was concerned. The Waitemata Power Board would take these over and buy our plant after ten years' usage at cost price. This arrangement represented.the best possible bargain, the borough would ever be able to make. At this stage there was read a telegram from the Hon. J. G. Coates, Minister of Public Works, on the request submitted to him by the Mayor that Devonport should be permitted to buy power in bulk on the same basis as Palmerston North, paying for current plus maintenance of line rather than at any rates the Waitemata Power Board should impose. The Prime Minister said: "In reply to your telegram of June 26 the Government has no intention of intervening between the Power Board and the borough to persuade the board to supply power at Government rates, plui £100 per annum. The Government very strongly favours complete amalgamation, so that the electrical system in j both the borough and the Power Board district can be operated." An amendment was then moved by Mr. W. E. L. Napier, and seconded by Mr. F. J. H. Ellisdon, that the agreement between the council and the Waitemata Power Board, which had been signed and sealed by the council, be submitted to the board for its sanction, with the exception of the indemnifying clause. This clause, covering possible liability on consumers' motors consequent on the transference from direct to alternating current, had been objected to by the board, and was subsequently held by the council's solicitors, who at first advised its inclusion, to be unnecessary. Messrs. Aldridge and Henderson supported the amendment, as being in line with the declared policy of the council and in the best interests of the borough. When finally put to the council for decision the votinsr was six to four. Messrs. Napier. Ellisdon. Hislop. Henderson. Aldridge. and Massey voting for the amendment, and Messrs. Lamont, Walker, Marks and Campbell against it. At the conclusion of tne proceedings the Mayor expressed his pleasure at the way members had conformed to the amenities of debate and announced his intention to support their decision for the future well-being of the borough.