"DRASTIC AMENDMENT."

Auckland Star, Volume LX, Issue 246, 17 October 1929, Page 11

"DRASTIC AMENDMENT."

POWER BOARD FRANCHISE.

CEITICISM BY CHAIRMAN

AUCKLAND'S SPECIAL CASE

"While it is hard to say what effect the wider franchise will have upon the board in the future, we know of nothing that calls for 'or justifies the drastic amendment that has been carried by Parliament. We arc in the same position as a commercial concern. The shareholders are the ratepayers, and as such should have power to elect their directors." This statement was ' made' to-day bv Mr. W. J. Hoklswortb, chairman- of the Auckland Electric Power Board, . when. referring to the decision made by Par- ■ **™*~~«*~~* ■ liament to make the election of board members on the popular franchise, arid not on the ratepayers' qualificationsa3* was ordained when the board was established, as reported in another column. Mr. Holds - worth was surprised that a small bill being put through for Mr. J. HoldsworJh. other purposes, should be so radically altered as to interfere with the whole system of the election of board members at present. The Democratic Principle. "I notice that the Minister of Health (the Hon. A. J. Stallworthy) emphatically stated during the course of the debate on the Amendment Bill that he stood for the democratic principle," said Mr. Holdsworth. "I can say the same. Pesonally I am a believer in wide franchise, but etill that does not alter the fact that there are special circumstances surrounding the formation of the Auckland Power Board, which have been entirely overlooked in the debate. For instance, our area does not only include Auckland city, but adjoining boroughs and town boards. Owing to the latter's franchise in many cases not being democratic the position was made extremely difficult at the outset. It was; therefore, decided to limit the- franchise to ratepayers only. However, there existed the anomaly that in some districts we allowed man and wife to vote on loan proposals and for election of members to the board. If the husband was the ratepayer the wife had the right in his name, and vice versa. In the city, however, we confined voting strictly to the terms of the Act, and allowed franchise only to ratepayers. It was in order to place the matter on a more satisfactory footing that the board took the opportunity of a small bill going through, for another purpose to include in it a clause to right this anomaly, so that in all cases man and wife would be given the privilege of voting both for loans and the election of members. According to the amendment carried ratepayers only will vote for loan proposals, and the wider franchise will be for the election of membc-rs. Therefore it will mean that ratepayers, who are keenly interested in loan proposals, will only have the right to determine whether or not loans should be carried. Yet people who are not ratepayers, and perhaps have nothing at stake, will have the power to put men on the board to spend the loans, which only ratepayers can vote upon.

Commercial Basis of Board. "As large capital expenditure is essential for carrying on the work of the Auckland Electric Power Board," added Mr. Holdsworth, "the ratepayers' property ie pledged in the way of rates struck over the whole area as a guarantee of good faith to those who lend money overseas. We differ from the ordinary local body inasmuch as the latter is dependent for the bulk of its revenue from rates. The board ie run on sound commercial lines, and provides interest and sinking fund from revenue. While a number of boards in New Zealand have had to strike substantial rates to make up deficiencies, the aim of the Auckland Board has been to run on sound'commercial lines and to avoid the collection of any rate. Up to the present this has been made possible by sound administration. It is just possible und' the new conditions that the whole position will be altered. The work of a power hoard is of a highly technical nature, and it takes some years for the layman to get a grip of and to follow the work of the undertaking in an intelligent manner. So far the ratepayers have shown discrimination and judgment in the selection of the members of the Auckland Board, and all the present members are men with long public experience. Most of them, indeed, are chairmen of the various local bodies of which they are member?, and are spread as evenly as it is possible to spread them over the board's area.

Development of ArapunL While special legislation has been introduced for the guidance and control of Power Boards the Auckland Board ha? worked under an Act of its own and this again was made necessary by the special circumstances surrounding it. The development of the Arapuni hydroelectric scheme was only made possible by the formation of the Auckland Power Board. In order to secure the co-opera-tion of the sixteen local bodies comprising the power board area it was essential to have special legislation to meet the special requirements. Even the price of current agreed upon between the Government and the hoard was arranged with thi3 in view. Criticism from time to time has been levelled at the Government and the Auckland Board for what was termed preferential treatment, but these statements are made by people who overlook the special circumstances. The board will require to keep its up-to-date steam plant as a stand-by, and this will cost it £3 per k.w. per annum. The Government, realising this, met the board in the price of Arapuni power by making it £6 per k.w., so that the total cost to the board will be £9 per k.w. This brings the price not only up to what other boards are paying, but- in some instances over that amount. This aspect of the question is often looked when people criticise and t:»l£' about the preferential treatment the: board has received.