NO REDUCTION.

Auckland Star, Volume LXIV, Issue 96, 26 April 1933, Page 8

NO REDUCTION.

BULK POWER CHARGE. REPLY TO CpUNTRY REQUEST EXPLANATION OF POLICY. "The Government has from the beginning of its hydro-electric policy' adopted the principle of supplying power in bulk at a low rate in order to develop its business, recognising that in so do'ing it would, be necessary for it to incur losses for some years, but . recognising also that with these reasonable prices it could hope, over a period of years, to establish a business that would be selfsupporting, and would not require continual adjustment in bulk supply rates. This policy, although it has not yet enabled the Public Works Department to get its part of the business into an absolutely sound financial position, has enabled power to be supplied to the actual consumer at gradually reducing rates, and at rates which compare morei than favourawy with rates charged forj similar services in other parts of the world." This statement was contained in -a letter read at a meeting of the Frankton Electric Power Board from the Minister of Public Works, the Right Hon. J. G. Coates, in reply, to requests made -by the country boards of the Auckland Province for a reduction in charges for bulk supplies of electricity. Mr. Coates said he quite realised that country boards were finding difficulty in conducting their business profitably, but the Government itself was also experiencing difficulty in carrying on its electrical undertakings in such a way that they wotild not become a burden on the general taxpayer. The suggestions made would reduce the. cost of power to the boards, and to the same extent would reduce the revenue received by the Department, but no idea was given of how the prospective reduction in revenue could be made good. "I have given considerable thought to ithe possibility of reducing bulk supply

charges, but regret that under present conditions it does not appear possible to offer any relief," concluded Mr. Coates. Further representations are to be made to have a uniform charge made in respect to both islands.