BOARD PROTESTS

Dominion, Volume 29, Issue 93, 14 January 1936, Page 10

BOARD PROTESTS

Manawatu Power Supply

Dominion Special Service. Palmerston North, January 13. A fresh, aspect of the dispute between the Manawatu-Oroua Power Board and the Palmerston North City Council Is the imposition by the Public Works Department on the board of a penal rate for its quarterly bulk electricity, the board having allowed to remain outstanding the amount it has not been able to collect from the council. At a meeting of the board this afternoon members protested at the department’s basis of computation, and a recommendation was carried that the extra sum be not paid. The matter was raised in a report from the. managing-secretary, Sir. K. W. Eglinlon, who said that for the electricity supply during the quarter ending December 31, an account for £13,479/18/2 had been received from the Public Works Department, including £2215 in arrears on the previous quarter’s account, this being the extra amount charged on the basis of .4d. a unit for Palmerston North’s share of the supply through the board, which haid been unable to collect it, and consequently declined in its turn to pay the money to the department. After deducting this amount from the bill, the actual quarter’s account was £11,263 18/4, including £5511/0/8 which the board had to collect from the city council, the balance coming from its consumers. Had the account been compiled on the basis of the old contract, it would have totalled £9lOO, of which £3878/4/- would have been collected from the council. Because of the latter’s refusal to pay except on the basis of the old contract, the board was being called upon to pay £531/1/8 more for this quarter’s supply alone, to the department. The board should lodge a protest against the methods adopted by thd Public Works Department in calculating the cost to the board, the chairman (Mr. C. G. C. Dermer) said. The matter was in abeyance till the court case was heard. No protest had been inade by the board to the department on the last occasion, but the board bad simply declined to pay the amount. As long as the -4d. unit rate for the city's share of the supply was continued the board would be paying considerably more for its electricity, the extra amount for the last two quarters totalling £9OO. Mr. W. McKay said it was clear under the injunction that the council , would be responsible for any additional expense to the board in continuing the supply. Mr. M. A. Eliott: The department has fo charge on the present basis to uphold its case against the city council. Mr. Dermer said that the case between the board and the council would be heard at the next sitting of the Supreme Court. Mr. J. Boyce suggested that as there might be nationalisation of the hydro-electricity scheme, it might be as well to have the case adjourned until after Parliament met. It would he better to secure a decision, Mr. Eliott said, from the point of view of all concerned. The account was referred to the hoard’s finance committee with a recommendation that the extra sum be not paid.