Heathcote backs power stand

Press, 3 February 1981, Page 1

Heathcote backs power stand

£ .The ; A.Heafclic9te ’County. Xb uncles, 'electricity cbm -. mitteeA/ ’.yest.efiiay supported > the'' Christchurch City’Council’s public utilities committee . in voting for. > withholding a 9 per cent bulk - power charge drierease by the El ectricity Department. • • ' l£gal advice was . sought by ' the’ committee chairman: (Gr’ -W. K. Hindmarsh)' on the withholding, of the .increase. “Councillors might be liable for a surcharge under.the Public Finances Act,” he said; : The council’s . solicitor recommended that if the matter .went to court the council should ensure that the' supply continue until a. decision- .was reached. ■Cr Hindmarsh said that the bulk supply rate was a’ “disincentive" no longer applicable in New Zealand.

Cr J.- Richardson said that councillors were

shedding “crocodile tears” over 1 the -; increase. 1 They; had nbE cried - when - the 7 chairman’s' allowance was increased by 33 - per cent last year. He said, that he .was concerned about the -end result, .Refusing to pay the increase would .be .like his refusing to pay his taxes. “The electrical supply; is, a valuable asset to this' county. We avoid a 5 per cent increase in rates with it,” he said. A' ? A proposal by Cr Richardson to put the matter back in the hands of the supply authority was- argued against by Cr M. C. C. Buchanan.

“The authority has no muscle," she. said. Cr B. E. Sutherland said that he wanted an - assurance that all Municipal ’ Electricity Department profits- would-l/be used solely in electricity spending. ■’ ' .

There -was ,no. .question

of the Heathcote County Council’s going outside the law in the matter, said Cr Hindmarsh. It would follow legal procedures. Earlier, the committee voted ,in support of an 11.4 per cent increase in the retail tariff from April 1.

/ The increase would provide a surplus of $23,300 in the electricity funds, which would meet costs arising during the year, said the electrical engineer (Mr I. R. Dehsem).

. The difference . between the bulk-rate increase and the Heathcote retail tariff, 2.4. per cent, was necessary to meet increased wages and materials costs.

The Press Association reports from Oamaru that the Waitaki Electric Power Board voted yesterday to accept the bulk supply agreement