Power Board Merger Offer

Press, Volume CII, Issue 30214, 20 August 1963, Page 14

Power Board Merger Offer

(N.Z Press Association) TAURANGA, August 19. The Tauranga Electric Power Board will offer the Tauranga City Council £250,000 for its Municipal Electricity Authority. The offer will be made in cash. The board decided on this action ait a special meeting today The board passed a resolution which said it believed a merger of the two electrical undertakings would be in the best interests of all consumers in the area and that an approach to the Tauranga City Council be made proposing that authority be sought from foe Minister of Electricity for both generation

and distribution to be brought under the control of one authority The basis of the merge: proposal is that a cash payment of £ 250.000 be made for the city power undertakings; that failing agreement on foe amount of compensation, foe amount be determined by a competent person appointed on foe advice of the Electricity Advisory Council and such person’s decision be final and binding; and that the constitution of foe new authority be five representatives from Tauranga city and five from Tauranga county with two for foe combined areas of Mount Maunganu: and Te Puke

A guarantee will be given of similar employment to all city electrical staff with no loss of salary or privileges. The chairman of the board (Mr W. J. Ross) said foe council had over foe years requested authority to in-

crease its local generation. In 1963 the council was adv.sed by the Minister of Electricity that this authority would be given provided foe output from new stations was shared between council and foe board

“To date, the council has given no indication bow fois power will be shared, akfbough full details of foe new schemes have been given,” he said. Mir Ross said that if foe cotuxjsl was not prepared to oonsader such an offer, he recommended foe board do nothing to binder the council's development of foe Watiroa river power resources but that before entering into any contract with foe council to purchase power, the board authorise a survey to be made erf foe potential of foe hydro-electrical development wifoin foe board's district, and that full details of a gas turbine station be investigated.