M.E.D.’s transfer ‘backed by Govt’

Press, 11 August 1979, Page 1

M.E.D.’s transfer ‘backed by Govt’

A transfer of $l.B million from the Municipal Electricity Department’s accounts to other funds last year was made with Government support, said the Mayor of Christchurch (Mr H. G. Hay) yesterday. Mr Hay, in a letter to the Minister of Energy (Mr Birch), has taken exception to Mr Birch’s criticism of the transfer. Mr Birch told a Christchurch Central by-election campaign meeting .in Christchurch last week that the transfer,- to the Christchurch City Council’s general rate, had made it difficult for the Government to provide the assistance in power charges sought by manufacturers.

Mr Hay said that most of the transfer, $1.25 million for the purchase of the Miller’s building in Tuam Street, was made with Ministerial approval and Government support. Discussions were held with the then Associate Minister erf Finance (Mr Templeton) before the council decided to buy the building, Mr Hay said.

He believed that Mr Templeton had then discussed the issue with the Minister of Finance (Mr Muldoon). ! “Much-appreciated support was given this council; administrative procedures were shortened to enable the necessary approvals to be given within the time available. Loan .funds were arranged, and officials of the Ministry of Works and Development and the Treasury examined and reported on the proposal at short notice,” Mr Hay said in his letter. The purchase of the Miller’s building had benefited the ailing Miller group of companes, saving all but about 40 jobs, the building industry, which had received conversion work valued about $3 million on the building, and the council, which obtained essential accommodation for its staff.

Mr Hay said that a substantial existing asset had been used, avoiding new construction. A somewhat depressed area of the Christchurch central business district would be rejuvenated by the move.

However, the. council would probably not have considered making the fund transfer had it known bulk power charges would rise dramatically this year, Mr Hay said. The expected increase in electricity tariffs was 5 per cent at the time the council considered the transfer. The increase of 60 per cent had shocked the council and all other supply authorities, he said.

The rest of the transfer, $575,000, went towards loan charges and some running costs of the Queen Elizabeth II Park stadium and sports centre. Queen Elizabeth II Park was the responsibility of the council, and had been built with little central Government assistance, but it was a national asset, Mr Hay said. “It is unfortunate that an action taken with Government approval should now be used in a by-elec-tion campaign as an argument against approaches by South Island interests fqr better treatment over South Island electricity prices,” he said.