LOANS FROM ELECTRICITY DEPARTMENT.

Press, Volume LXVI, Issue 19971, 4 July 1930, Page 11

LOANS FROM ELECTRICITY DEPARTMENT.

CITY COUNCIL'S ACTION CRITICISED. / -fc,.. •% • .. - \ ■ -The action of the in writing off loans made from*t£e Municipal .Electricity other departments of the Gouncil was : characterised as "a breach of business integrity"' by Mr Arnaiid McKellar» an ex-chairman of the Council's Electricity Committee, yesterday. - , " It was another example of" kow > local body almost invariably; ran amok whenit startedmunicipaitr&ding.saiil Mr McKellar. lt had Ijeen shown *t last Council meeting how-; profits' from the M.E.D.-amounting to over'.£2l,ooo had been .hidden. When the loan of £12,50t) for the 1 " relief of unemployment was made Councillors stated publicly that' it wbuld be paid back to th» M.E.D., and that interest and sinking fund would be paid oq- it. Yet what had happened to the money? Apparently it would never be" to the M.E.D. The arguments of the present City CoandilloS-s thft^they"considered the Council fuiuls > a composite - whole,v and could\ therefore us® them as they pleased,, would not hold' water. . . .• "

The Council, as controtUers of the Municipal electric supply/irere trustee® for the . consumer, and'-any profits made from its sale should be handed hack to the%onsumer by decreasing .the cost of current instead of being, used to liquidate debts for: which the crther departments of the Council were responsible. In ordinary business concerns the meddling with funds in, this way would' not be tolerated. * 1 A cut in the price of current should not be made immediately, said. Mr McKellar, because he agreed that a big reserve fund Bhould first be - built. >up until they were sure that the Government was not going to increase the price of electricity to the Council. When _ the Council were satisfied this point, and the reserve fund waß large enough to provide for other- contingencies there was no reason whvthe price of current should ngt be cut in half. _ I 1