POWER SERVICES

Dominion, Volume 26, Issue 29, 28 October 1932, Page 7

POWER SERVICES

Control by Boards PROTEST FROM CITIES Deputation to Mr. Coates Strong exception to a recent suggestion made to the Government that local body electrical services should be placed under the jurisdiction of power boards was taken by a deputation representing the cities and boroughs which waited upon the Rt. Hon. J. G. Coates yesterday morning. In reply, Mr. Coates said it was not the intention of the Government to ride roughshod over the rights of any local body, and the matter would have to be looked at from the point of •view of equity. ■ The deputation was. introduced by the mayor of Christchurch, Mr. D. Sullivan, M.P. Mr. T. C. A. Hislop, Mayor of Wellington, said the statement made by Mr. J. Linklater, M.P., when a deputation from the Powers Boards’ Association recently waited upon the' Prime Minister, amounted to a plea.that the boards were in financial difficulties, and therefore that the businesses of the successful local bodies supplying power should be absorbed and their assets and goodwill used to make good the losses made by the power boards. Prudent Management. The local bodies, by careful and prudent, management, had made a success of their various businesses, said Mr. Hislop. The power boards, through extravagance and mismanagement, through wasteful .capital, expenditure and reticulation, and supply to areas that would not have been supplied had the elementary principles of sound business management been observed, had made heavy' losses, and in many cases were on the verge of financial breakdown. It was foreshadowed in the Public Works Statement that legislation should be enacted whereby the assets of the successful municipal businesses should be used , in order to relieve the unsuccessful power boards of the results of their own extravagance and mismanagement. < ' ' “We are here,” said Mr. Hislop, “to protest against such monstrous propo-

sitions. We are here to protect these businesses of our citizens which have been- built up from their own resources by careful aud prudent management, against what would amount to a virtual raid for the benefit of power boards, that as a result of careers of profligate extravagance find themselves in financial jeopardy. Justice and Honesty. “There might be justice in a proposal to enlarge the areas within the jurisdiction of local bodies for all purposes and to eliminate the over-many local authorities that are to-day a burden on the community, but there can be neither justice nor commercial honesty in selecting one activity of a municipal authority because it happens to be a successful activity, and raid it to fill the depleted coffers of extravagant power boards.” Mrs. J. McCombs, representing the Electricity Committee of the Christchurch City Council, Mr. Fraser, representing South Island boroughs, Mr. G. F. Roach,' representing North Island boroughs, and Mr. A. E. Mansford, Mayor of Palmerston North, also spoke. In reply Mr. Coates said the Government had to examine the question iu relation to its effect upon the country as a whole. There was no doubt that there was room for development in tire direction of larger power-supply areas. The position with which the boards were faced was not due mainly to extravagance, and had the prices of primary produce not fallen as they had, it was possible that they would have heard less from the power boards. The Government would not take any action without the fullest investigation. He promised to investigate the position and inform his colleagues what he considered would be the best course in the interests of the Dominion as a whole.