Power merger proposal to be settled

Press, 22 February 1977, Page 6

Power merger proposal to be settled

[Staff reporter Ashburton'; j. The Ashburton Electric j; Power Board will convene a 1 ’ [meeting with the Central. 'Canterbury Board fori, settling details of a proposed; j merger between the two. [ The Ashburton board made : I its decision at its monthly I meeting yesterday. It had' [heard report from its [chairman (Mr I. A. Hart); i who emphasised that the [motion before board mem-; ! bers did not represent a final [commitment. He said the Ashburton, board had earlier been con[cerned at the suggestion that' l i i* should go south for an' amalgamation which would [„ive it added strength. It/ ;felt th. community of interest' [ lay north rather than south.: [and it opened negotiations; ['•’ith the Central Canterbury! [board. Reports from execu-[ [ lives of both boards showed 'that the boards would be compatible in a merger. :: Increases in the Ashburton [ tariffs had closed much of; the previous gap between the two boards’ charges. Ashbur- ! ton’s domestic rate was now' 'slightlv higher and the industrial rate slightly lower than that in Central Canterbury. ' .Mr Hart said. I Central Canterbury had!

already passed a resolution stating its support of; amalgamation and if details wore worked out, it followed that the two boards would ask the M t ster of Electricity [(Mr Holland) for approval : Mr Hart said. Mr T. A. Lane said he was [surprised that Central Canterbury had agreed to the [riposal without offering [suggestions on staffing or [representation. But he would [support the merger if only [because of the possibility ;ihat Ashburton could be [forced into an amalgamation. Mr Hart said he did not [consider it was fair to I criticise the northern hoard Lose discussion had been in 'committee. He felt that the 'motio i on a merger would 'enable discussion on the ; roints raised, including a merger’s timing. i The motion recorded that [both boards had showed ! nreparedn p ss to merge. Ash- : burton added a rider that [satisfactory agreements [should be reached on repre-' sentation, the name of the board, and staff. | The Ashburton board : decided to convene a meet-[ ! 'ng with the Central Canterbury board members at Ashburton. There they would : formally <ct=ider a motion i to amalgamate. I

I Mr Hart said that all mem- '! bers yvere able to represent I /the board in the early stages' I [of discussion. Valuation, or! I some other yardstick, could he used to determine eventual representation. I Ashburton board staff! ; would be fully protected in 1 /arty merger, Mr Hart com- , [merited last night. There /'would he more opportunities [for staff in a larger organisaII tion Both National and Labour • .Governments favour! /amalgamation of power [authorities. The board would t prefer a voluntary amalgamation to a forced merger, he : r id. ! Under the Labour Goy'ern- ; ment’s Local Government [Act, the board had been ■■ alipi d with southern /regions. Costs were higher in; t - south. Mr Hart said. It' ■ was better to amalgamate | > irthwards The Central CanterburyElectric Power Board has its ; headquarters in Hornby and .[supplies electricity to 18.000' ■ consumers. Ashburton pro-1 vides electricity to 12,000 j I consumers. It also supnlies' /off-peak power through a j sv'em of second meters — ,!a service the Central Cant®rI h- -v b' ard did not give, th? i Ashburton ®e ri era l managei | (Mr D. J. Binns) said. I