Heathcote will sign Govt power contract

Press, 27 March 1981, Page 1

Heathcote will sign Govt power contract

The Heathcote County Council has backed down on its refusal to sign the Government’s bulk-elec-tricity supply contract. The council last evening decided to sign the contract but reserved the right to apply to the High Court for a judgment on whether the Government is entitled to charge the amount set. The Minister of Energy (Mr Birch) earlier this month threatened to revoke the council’s authority to supply power if it did not sign the contract. The County Chairman (Mr W. M. Hindmarsh) said that the council wanted access to the figures on which the Government had calculated the cost of supply. Although Mr Birch had written to Mr Hindmarsh yesterday, ' the council had not yet received a direct .reply to its request. The County solicitor had advised that the council was not ready to proceed with any legal steps. However, the council could sign the contract, pursue its legal inquiries, and not be under threat of

losing its authority to supply electricity. Cr J. Richardson moved early in the meeting that the council sign the contract immediately but the motion was amended so that the council could continue its legal inquiries. Cr Richardson, who has opposed the council’s refusal to sign the contract, said that it was time councillors acted in the best interests of the ratepayers and the council. As he understood it,- the County Solicitor had advised the council to sign the contract. Any councillor who went against legal advice did so at his own risk. . Cr M. C. C. Buchanan said that the ' council should sign the contract but only under duress. “Are we the only supply . authority to fight for the rights of the New Zealand electricity consumer?” she asked. The council later agreed to. join the Riccarton Borough Council in a subcommittee to discuss the problems of electricity supply with the Government.