ELECTRIC CURRENT

Bay of Plenty Times, Volume LXVI, Issue 12285, 24 February 1938, Page 3

ELECTRIC CURRENT

j POWER FOR FLAXMILLS LETTER TO BOROUGH COUNCIL AOREEMEXT WITH GOYERXMEXT A letter, dated February 15, from Mr J. R. Bongard, Engineer to Tauranga Electric-Power Board, was read at last night’s meeting of the Borough Council, advising that the Council’s letter regarding the special concession for flaxmills was considered by the Board, and he was directed to ask the Council to give the matter further consideration. Mr Bongard added: “We have received advice from the proprietors of one of the flaxmills supplied by us that they are closing down next week, owing to the unfavourable economic conditions in the industry. While they hope this will be only temporary, they can give no indication at present as to when they are likely to resume operations. In view of this, it would appear that the present is ‘ an inopportune time to increase the tariff for power supplied. We are notifying the millers m terms of your letter under reply, and no doubt, on receipt of their replies, we will have further information to submit for your consideration.”

It was decided to defer the matter until further information was suomitted by the Power Board.

The District Electrical Engineer, Hamilton, wrote in regard to standby supply from McLaren’s Falls and said the agreement of May 9, 1925, for supply of power to the Public Works Department, stated that ‘ The Minister shall pay to the Corporation the sum of £ 750 per annum provided that at least 1000 k.w. at a daily load factor of 33 1-3 per cent, is made available for the use of the Minister for standby purposes.”

The letter added: “As you know, it was anticipated that at some date the load in the Tauranga district would grow to such an extent that the amount of power stated above would no longer be available for our use, and it appears that this position has been reached, and that we could consider that this clause of the agreement was automatically terminated on December 31, 1937. Will you please let me know if you agree.” Cr lies explained that the position was due to a dry spell, and there was only a small chance of reserving the amount of power indicated. He moved—That the Council accept termination of the agreement as from Decembdj - 31, 1937,and point out that the supply position had been affected by the dry weather.

Cr Allely seconded. The Mayor thought the matter should be referred to the Engineer and then reconsidered by the Council.

Cr lies withdrew his motion and it was decided to refer the matter to the Borough Engineer.