Recommendations In Report

Press, Volume C, Issue 29625, 22 September 1961, Page 12

Recommendations In Report

The removal of power generation from direct Government day-to-day control and changing political policies was recommended to the annual conference of the Electrical Supply Authorities’ Association of New Zealand yesterday. The report, prepared by a special committee of the association which met on May 31, also affirmed that there should be strict adherence to the concept of local control of the distribution of electricity by elected representatives in close contact with the consumers. The report said there were dangers inherent in the present administration. Some other form of organisation was clearly needed. In recommending the removal of power generation from State control, the report said this referred to State generation of electrical energy—not local generation. The report supported a policy that would not disturb existing control of local generation by supply authorities.

The report said that the control of the whole electrical industry, both distribution and State generation, should be vested in a single organisation. This electricity council, as contemplated by the committee's report, would be constituted on a part-time basis with functions clearly defined by statute and should consist of 10 members. Chairmanship The chairman would be appointed by the Government after consultation with the Electrical Supply Authorities' Association. and should not be a member of Parliament, the report said.

The remaining nine members would include three Government representatives three representatives of municipal electricity supply authorities, and three representatives of electric power boards. The functions of the council would be to co-ordinate the planning of the whole industry, both generation and distribution, to represent the industry at Government level, and to be responsible for the industry’s policy. The report recommended that any boundary adjustment or amalgamation be undertaken in the first instance by voluntary negotiation.

The present Electricity Department would be divorced from Government control and so made responsible to the electricity council for its administration. “Last Opportunity” Asking the conference to adopt the recommendations contained in the report, the association's president (Mr W. S. N. Rennie) said that, in the opinion of many, this was the last opportunity for the industry to . determine its future. “The previous Minister of Electricity (Mr Watt) and the present Minister (Mr Goosman) have both given clear warnings to our general meetings. Their statements show conclusively that both Governments are alert to some of the inconsistencies to be found in the supply of electricity. "Within the next five years £4oom capital will be invested in the industry, and the Government must ensure a strong organisation exists to control such an investment,” said Mr Rennie. “The opportunity to reorganise ourselves exists probably for the last time, and we must accept it without fail,” said Mr Rennie.