NEW BRIGHTON LIGHTING

Press, Volume LXXI, Issue 21384, 29 January 1935, Page 14

NEW BRIGHTON LIGHTING

♦ Ownership of System TRANSFERENCE TO THE CITY An agreement between the Christchurch City Council and the New Brighton Borough Council for the transfer of the street-lighting system at New Brighton to the ownership of the city, on the payment of £2500 to the borough, was confirmed at last night's meeting of the city council on the recommendation of its finance committee. It was explained that the borough had found difficulty in paying off the sinking fund for the equipment, and that some agreement with the city had become desirable. In 1916, the committee reported, a 21 years' contract was arranged between the city and New Brighton Borough for the supply of electricity. The city obtained a license to supply in the borough area and erected the reticulation. The contract provided, however, that at the end of the period the street lighting system should be the property of the borough, the remainder of the reticulation being the property of the city. This involved the borough purchasing the street lighting portion of the equipment by the payment of a sinking fund included in the annual charge for street lighting. For the lamps erected early in the contract, this was advantageous to the borough. As the remaining period of the contract shortened, these payments became greater, so that the equipment could be bought within the shorter period. The borough found this process to be unduly burdensome, and approached the department with a view to terminating this feature of the contract.

Simplest Solution The matter was fully reviewed and discussed between representatives of the two bodies. It was obvious that the simplest solution was for the Electricity Department of the City Council to repay to the borough the sinking fund paid by the borough by way of purchase of the street lighting equipment, and for the whole of the electrical installation (street lighting and otherwise), in the borough then to remain the property of the city. With minor adjustments for other considerations involved, this had been agreed to between representatives of the two bodies, and the matter could be now wound up on a basis satisfactory to both the borough and the city by the payment to the borough of the amount of £2500. The necessary modification of the particular clause in the contract had been approved by the legal advisers for both bodies, and by letter from the borough council. The transaction could therefore now be concluded by the council's confirmation, and the payment of £2500. The matter was submitted with the committee's recommendation for the council's approval. The report was adopted.