ELECTRIC POWER SUPPLY

Dominion, Volume 29, Issue 300, 15 September 1936, Page 5

ELECTRIC POWER SUPPLY

Manawatu-Oroua Board LETTERS FROM MINISTER Dominion Special Service. Palmerston North, September 14. Mention of the long-standing dispute between the Palmerston North City Council and the Manawatu-Oroua Electric Power Board regarding power supply costs was made at to-day’s meeting of the board when a letter on the subject was received from the Minister of Public Works, Hon. R. Semple. "I am glad to know that there some prospect of a settlement of the matters in dispute,” stated the letter. “Some months ago when I met both parties at Palmerston North I stated that if your board and council could agree as to the service charge I would make every endeavour to reach an agreement with the council as to the charge for power supplied by the Public Works Department to the board for resale to the council. 1 now wish to reaffirm that, if the board and the council will come to an agreement. I will make every endeavour to settle with the council that part of the dispute relating to the price of power supplied to the board for resale to the council.”

Mr. J. Hodgens, M.P., nsked if any word had been received from the council yet. The managing secretary (Mr. K. W. Eglinton) : No. nothing yet. The chairman, Mr. C. G. C. Dermer, said the letter was the outcome of au inquiry to see if the Minister's promise still held good. It was not quite definite. He only said he would ‘'endeavour to.” Mr. Hodgens: The Minister is of. tlie same mind as when he was here. The undertaking is quite definite. As an explanation of why the board has not received a letter from the city council, I might state that the matter has been discussed by the works committee, but since then the council has not met as a council. I had hoped that the letter would be here to-day. The discussion then lapsed. Replying to a request from the board for a subsidy on the cost of the construction of the line at Umutoi. Mr. Semple advised the board that there was no legal provision in the State Supply of Electrical Energy Act for the Government to make grants toward the cost of lines owned and operated by local authorities. ■*lf the Government controlled the whole of the distribution of electricity it might be reasonable for it to consider making provision for expenditure on work of this kind,” continued the Minister’s letter, “as then the cost might be recovered over a period of time by means of the profit made over a large number of consumers in the more- closely settled areas in the various parts of the Dominion. Under present conditions, however, I' can hardly recommend the granting of subsidies for work of this kind." In a further letter to the board the Minister said the question of getting electric supply into the sparsely populated portions of the Dominion was one which probably would be engaging his attention during the next Parliamentary recess, when he hoped to be able Io evolve some definite policy which would be more or less of general application.