UNIVERSAL RATE?

Auckland Star, Volume LXIII, Issue 261, 3 November 1932, Page 11

UNIVERSAL RATE?

ELECTRICITY SUPPLY. FIXATION OF CHARGES. NATIONAL BOARD OF WORKS. CONSIDERATION BY CABINET. (By Telegraph.:—Parliamentary Reporter.) WELLINGTON, thie day. Involved in- the reorganisation of the Public Works Department, a work to which the Minister in charge, Mr. Coates; is at present devoting the whole of his time, is the question. of the rates charged to the cities of Auckland, Wellington and Christchurch for the supply of electricity in bulk from Government power stations. In the case of Chrietchurch, in particular, the present rates charged by the Government are favourable to the city, and considerable pressure is being exerted to bring the rates charged to all retailing authorities— town and country—into line. The question is one which Cabinet will decide, and so far a-definite decision has not been reached. The National Expenditure Commission recommended that the special rates charged to some of the very large purchasers should be abolished and a flat rate should be charged throughout the Dominion. This view has been supported by rural organisations that have been placing their opinions before the Government for some time. Advocates of- the flat rate are hopeful that when the present contracts with large municipalities expire the rates will be so adjusted that the cities will pay more for the supply of power, and the rural areas will pay lese. Future Management. It is bejieved that serious consideration is being given to the Expenditure Commission's. recQmmendation that a national board of works be established to take control of most of the activities of the Public .Works Department, including the business management of the hydro-electric and irrigation Tindertakings. The commission also recommended that the-board be entrusted with ■ the fixation of eharg , /, for electric power, and, suggested that if the board reported adversely on any suggested contract for the supply of hydro-electricity at a rate not in accord with the standard rates for the Dominion, th» contract should not be entered into without legislative authority. Control of Municipal Plants. Another phase of city electricity supply is given prominence by the efforts which are being made by rural power boards to gain control of municipal undertakings where these municipalities are in power board districts or where they are contiguous to power board areas. Already there have been deputations to the Government urging that this action be taken, while on the other hand the cities and boroughs have strongly expressed their ■ opposition to the scheme. The Government has not yet reached a decision on this matter, and it is likely that much will be heard about it when the Publio Works 'Estimates come before the House.