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Mr Watt Again

Is the Minister of Works (Mr Watt) trying to make amends for his petrol tax indiscretion with the ultimatum he has given to electricity supply authorities? Whether or not his motive is to win a little cheap popularity, this is petty and unjustified interference with responsible local government. It is not some profit-making or profiteering business that he threatens with price control, but bodies elected by citizens with no interest beyond the efficient management of public utilities for the benefit of citizens. Whatever profits the authorities make are returned to the citizens through power charges. Whatever losses the Minister may bluff them into will have to be met by the citizens, either through charges at some stage or through reduced efficiency or service. If these authorities do not know more than a very new Minister about running theft- local affairs in their varying local circumstances, then there is something more wrong than can be cured by trifling price adjustments.

In some instances supply authorities might have arranged their new tariffs rather better; but the tariffs have now been fixed, and it will be extraordinarily difficult for any authority to compensate for a cut small to the individual but substantial in the affairs of consumers as a whole. Whether the Minister could enforce his will seems questionable. Suppose he carried out his threat to put electricity under price control, does this mean that the Price Tribunal would be instructed to break new ground by compelling a local authority to sell at a loss? However, most authorities will probably yield to the dictation of Mr Watt, though in the case of the Christchurch City Council, at least, it will mean a reduction in revenue already pared too fine for the economic health of the undertaking. The M.E.D.’s reserves are little enough in relation to the undertaking’s responsibilities to its

consumers. Is Mr Watt sufficiently on top of his own job yet to start interfering in the affairs of others?

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19580403.2.93

Bibliographic details

Press, Volume XCVII, Issue 28552, 3 April 1958, Page 12

Word Count
330

Mr Watt Again Press, Volume XCVII, Issue 28552, 3 April 1958, Page 12

Mr Watt Again Press, Volume XCVII, Issue 28552, 3 April 1958, Page 12