Farmers upset over power charges

Press, 4 May 1981, Page 16

Farmers upset over power charges

North Canterbury farmers are concerned about the disparity between the cost of farm power and that of domestic power. | They believe that the North Canterbury Power Board is keeping the price of domestic power down by charging a high price for farm power. Mr R. G. Forbes (Omihi) told a meeting of North Canterbury Federated Farmers’ provincial executive that he had sent a letter to the board’s' general manager (Mr D. W. Harris) asking why the price of farm power was higher. Farm power cost 15.26 c a unit, compared with 5.42 c a unit paid by domestic users. Mr Harris, in reply, had said that the price of farm power was as it was so the price of domestic power could be kept at an "acceptable level.” Executive members reacted angrily. “There should be no question of farm power subsidising domestic power,” said the chairman of the rural services committee (Mr P. Fleming).

The executive passed a remit, “That the Rural Ser-

vices Committee be asked to look into the disparity between the cost of farm power and domestic power.” However, Mr Harris said later that there had been a “complete misunderstanding.”

“There is no way that farm power charges,' which make up a very small portion of the board’s revenue, are being used to subsidise domestic power charges,” said Mr Harris.

Farmers get charged the same rate as other domestic users for the power they consumed in their homes, he said.

They pay the higher rate for only power they use in farm activities such as milking and irrigation.

South Island farmers were eligible for a 25 per cent subsidy on - power used for those purposes, and the cost was tax deductible as a farming expense, Mr Harris said.

“I think these people have to be fair about it,” he said. “They are, by national standards, getting the power at a fairly low figure.” The board would be'happy to meet farmers to clear uj» the misunderstanding.