Misuse Of Power Revenue Alleged

Press, Volume XCVIII, Issue 28894, 14 May 1959, Page 9

Misuse Of Power Revenue Alleged

(Neu, Zeatana Press Association/

WELLINGTON, May 13. To gain revenue for other than electricity purposes, municipal electricity distributors often put consumer charges up to equal the neighbouring rural tariffs, said the general manager of the State Electricity Department, Mr A. E. Davenpor at today’s sitting of the commission of inquiry into the distribution of electricity. Under cross-examination by Mr A. E. Hurley, representing the Municipal Electricity Supply Authorities, Mr Davenport was answering Mr Hurley’s suggestion that rural electricity charges were growing increasingly similar to borough charges. “Where the boroughs have need for money for other things, they put their charges up to neighbouring rural charges and make whopping surpluses to use for other

than electricity purposes,” said Mr Davenport. In answer to a question he cited Napier as an example. Mr Hurley: Napier will, no doubt, give evidence of what It is doing later. This practice of drawing off surpluses for other purposes had come under fire on a number of occasions, said Mr Davenport. The 1954 Parliamentary Committee had, in fact, recommended that the municipalities should not be allowed to continue with the practice. “The prohibition of the practice would remove many of the attractions to a municipality of having its own electrical undertaking, separate from the local power board,” he said. “To put an end to it overnight, however, might cause difficulties.”

Pensioners’ Officers.— Messrs F. Rogers and L. Seaward were elected vice-presidents at the annual meeting recently of the Christchurch branch of the New Zealand Pensioners’ Association Mr R. Roberts became treasurer.