Power Boards’ Merger

Press, Volume CII, Issue 30051, 8 February 1963, Page 3

Power Boards’ Merger

Sir,— Although the merger of Springs-Ellesmere Power Board with the Banks Peninsula board is almost an accomplished fact, any applause may be premature, particularly from domestic consumers of the former. A copy of Hansard quotes Mr Kirk, MP. for Lyttelton, as assuring members during the second reading of this bill that no rating provisions were involved. Taken on face value, this does not coincide with the current activities of the Springs-Ellesmere caretaker board, who are in office only until April 1. but are busily engaged and proposing to raise substantial loans on the rateable value of one power district alone. Obviously such loans raised could not in such a short period, be expended solely in the interests of this district and can only be earmarked for the eventual combined areas. So much for diminishing mutual advantages. Such apparent juggling does not conform to the original outline.—Yours. etc, , E. P WINTER. Hornby. January 31. 1963 [The secretary of the Springs - Ellesmere Power Board (Mr V G Mason) said: “The Springs-Ellesmere Electric Power Board is, at the present time, seeking authority to raise a reticulation loon of £150.000 and this is in no way connected with the merger with the Batiks Peninsula board This amount of loan money will be required over the next two years for capital works in the Springs-Ellesmere power district. Even if the new central Canterbury board wished to use some o» this money in the Banks Peninsula area the law would not permit it to do so. The Banks Peninsula Board is actually in the process of raising a loan in its district and when the merger takes place such loan money can only be used in the Peninsula area. The position, when raising loans, is that a rate must be struck to provide the necessary security to the lenders, but the rate is never collected, the annual capita) charges being met from revenue. If your corresponded desires any further information 1 would suggest that he call at one ot tne board’s offices ")