POLICY DEFENDED.

Auckland Star, Volume LX, Issue 39, 15 February 1929, Page 11

POLICY DEFENDED.

POWER BOARD LOAN. i MR. HOLOSWOBTH UNDER FIRE j " REASONABLE PROGRESS MADE." | i • ! ERRONEOUS STATEMENTS j CHALLENGED. i j On tour of the uut»kirt.« "f it-dis-triet yesterday for the purpose of creating interest in its loan proposals for £t)7s.(Kl(i. which are to be submitted Jto ratepayers next Wednesday. the j Auckland Electric Power Board met with j I singularly few complaints. At Manu- j rewa, however, the chairman (Mr. W . -I. Holdsworth) found it necessary to cor-| I rect an erroneous impression concerning j j the value of the board"s new j lin Queen Street, and the conditions under which they are being erected: and also to challenge a statement that the board had neglected to adhere to the ' terms of its authority to *u|»ply elei- j tricky, particularly a< it related to the : country. I In outlining the reasons for the hoard' approaching the ratepayers Mr. Hold-- j worth said the reception of power from j Arapuni next May would relieve a great deal of anxjety. For the first time in its history the board would have ample | j power to meet all requirements. It wh-| '■ anticipated that the arrival of water power would give an impetus to tindemand for electricity, although since 1922 consumers had increased from 9000 to 46,000. The load hitherto had increased automatically, but now that a supply from Arapuni was in view the board was able to look for business. Quarter of a million of the £075,000 would be required to reticulate the balance of the board's area and strengthen the existing services. In addition, a demand from the Transport Board, the electrification of the railways, and alterations at the power house had to be anticipated.

Fictitious £400,000. A bombshell was sprung in the meeting when Mr. J. Ferguson asked a que:--tion about a " £400,000 building going up in Auckland." "Who ever told you that is misleading you," said Mr. Holdsworth. "We have an £80.000 building going up." Mr. Ferguson (who squatted on his haunches in a corner) persistently: 1 am looking for information. Mr. Holdsworth: The information you have got is erroneous. I am surprised at an intelligent man swallowing anything of that sort, because the matter is quite public. Mr. Ferguson said the figure wa> published in the Pres^. Mr. Holdsworth: I challenge you to produce it. It is contrary to fact. Mr. Ferguson said he would not vote for the loan if the board had a £400,000 building. Mr. Holdsworth: The contract price of the building is £72.000 and the cost of the site was £60,000. The building is not coming out of loan money, and the £675,000 has nothing whatever to do with the building. Mr. Ferguson: If you have money to put up a building, why raise a loan? Mr. Holdsworth reiterated his explanation about money being required for tramway and other extensions. Mr. Ferguson: The people out here are not interested in trams. Mr. Holdsworth: 1 don't say you are, but we would not be lit to sell power if we did not look ahead. Mr. Ferguson: You are talking tramways. We are at cross purposes. W T hat I want to get at is, what you are going to do with this loan ? Mr. R. H. Bartley (general manager) said Manurewa was vitally interested in tramways, because it was going to get power at a decent price owing to an increased load. Mr. Ferguson's grievance ultimately appeared to be that he had been asked for three different guarantees for a supply of power. The explanation was that other settlers had not been prepared to sign bonds, and therefore the guarantee appreciated. Policy in Country Questioned. That by reticulating closely-settled areas before serving the country, the board was not complying with the license given by the Government to supply electricity was the claim by Dr. Campbell Jenkins. "You will not go to certain places without a guarantee," he said.

"It is not playing the game," championed Mr. Ferguson. When Mr. Holdsworth explained that the board was making country extensions, Dr. Jenkins said he was interested in local extensions. He considered if the board got sanction for its loan it would not keep its word. Mr. Holdsworth: I give a denial of that. We have kept our word as far as it has been humanly possible. He added that the board had not been instructed that it must do certain things. Mr. Bartley said it was stipulated that power boards must be run on commercial lines. Many boards who had departed from that policy had got in such financial difficulties that they had been compelled to strike rates. Would Dr. Jenkins like the Auckland board to be run like that? Dr. Jenkins commented upon the board's surplus, and was assured that that was the result of the efficiency with which the services were run. "Whv cannot it be spent on the fanners?" he asked. "I have no doubt you feel virtuous now, but you will forget us if the loan is carried." Necessity of Guarantees. Again questioned about guarantees. Mr. Holdsworth said the board had to guarantee the Government £105.000 a year for power. A promise had been given that a supply from Arapuni would be available last April, and the board had not got it yet. What did the doctor say to that? Guarantees were common throughout New Zealand. Manurewa township also had its supply. Dr. Jenkins said he was speaking for 90 per cent of the settlers of Alfriston and Brown's Road, who were inarticulate and reluctant to speak for themselves.

"I emphasise that you have not carried out Mr. Coates' original intention that the closely-settled areas should assist to pay for the reticulation of the farming areas." Mr. M. J. Bennett said the Government stipulated that the board was not to reticulate any area unless it showed 12 peT cent and a special guarantee. After further discussion the doctor thanked the board for visiting Manurewa and intimated his intention to vote for the loan.