BURDEN RELIEVED.

Auckland Star, Issue LXI, 5 December 1930, Page 7

BURDEN RELIEVED.

POWER BOARD SATISFIED. NEW ARRANGEMENT. EXPLAINED. Commenting on the settlement, Messrs. Holdsworth and Bartley expressed delight that the matter had been finalised after negotiations which had extencled over nearly Six months. Appreciation was also expressed at the fair and reasonable manner in which the Government had met the wishes of the board. The Government had decided to pay "jifty-flfty" on the overhead at the King's wharf, and the point had been, emphasised in the discussions with the Minister that the /very fact of the board's having that large and up to date station would save the Government spending a large sum "of mo'ney on the erection of a steam stand-by plant in some other locality. The total capacity of the plant would be 41,000 k.w. when the. new turbine was installed. The foundations for it had been laid, and it was anticipated that it would be completed by the end of March. Possession of Plant Retained. ' It was to be clearly understood that the board had not handed over the King's wharf plant to the Government/ but that under the arrangement made the Government would be privileged to call on the station in the event of emergency, such as, the prese'nt, to supply all available "power back. The charges on the King's wharf station as a stand-' by plant had been adding £2 per k.w. per annum to the rate paid by the board to the Government for power.' Under the new arrangement that additional cost would be shared equally, aild would be of advantage to the whole of the consumers of the Auckland district.

The Government considered it was doing justice to the board by contributing half of the overhead charges i>n King's wharf station. The point was made to tlio Minister that he had made a definite promise to the other boards in the area that they would not have to pay a'ny more for power under present conditions than if Arapuni had been operating, and that if the Auckland board were called upon to pay the whole of the increased cost of generating it would, be most unfair. Cabinet had agreed that the Government should bear one half of the increased cost, which for the first year was anticipated to be approximately £26,000.

"The Government greatly appreciated the attitude the board adopted in coming in at a critical time and taking over the load without any inconvenience to the consumers, and also our willingness to add a 15,000 k.w. set at our own expense to meet not only the demands of Auckland city, but the whole of the province until Arapuni functions again," said Mr. Holdsworth. "This action, however, was only made possible by the sound financial policy the board adopted at its inception a'nd has strictly adhered to since. If it had not been for this policy, the board's position at the time of the breakdown at Arapuni would have been extremely serious. It is pleasing to note that we were in a position, although we deemed it something in the nature of 41 national calamity, to share the cost %f this unfortunate accident."