Power Inquiry Surpluses Used To Pay Tramways’ Debt

Press, Volume XCVIII, Issue 28896, 16 May 1959, Page 14

Power Inquiry Surpluses Used To Pay Tramways’ Debt

(Aieir Zeaiana Press Association)

WELLINGTON, May 15. The Napier City Council is usin/ its electricity revenue surpluses to pay off its tramways’ debt although there have been no trams in Napier since 1931. The commission of inquiry into the distribution of electricity heard evidence to this effect today from Mr H. Wylie, a member of the executive of the Electric Power Boards Association. Mi Wylie was being crossexamined by Mr A. E. Hurley, for the Municipal Electrical Supply Authorities on the use of surplus revenues Mr Wylie admitted power board surpluses did not always go to reduce tariff but sometimes were used to build up reserves. His association submitted that revenue should only be used for heat, light and power purposes which would include gas where that came under the same supply body Mr Hurley suggested the municipalities had a similar right to redirect surpluses to pay off original costs of introducing electricity, among other things. Mr Wylie: Napier insists it is keeping up its tariff to pay off its tramway debt, but the tramways have been extinct since 1931

The chairman ol the commission (Sir Joseph Stanton): It is easier to extinguish a tramway of course than a tramway loan. Later to Mr A. B Thomson, for the Wellington City Council, Mr Wylie agreed transport systems were good customers for electricity and where electricity and transport were, run for the same community, they were closely

connected. He did not agree there was a parallel between transport and gas, though the Wellington City Council had once “lumped” electricity and transport under the same department.