POWER SUPPLIES

Evening Post, Volume CXIV, Issue 97, 21 October 1932, Page 5

POWER SUPPLIES

EIGHTS OF BOKOTJGHS . COUNTRY COMPLAINT INJUSTICE ALLEGED Kepresentations were made to the Government by several power boards • yesterday that' in cases -where municipalities in power board areas Were retailing electric power the undertakings should be handed over to the power board concerned. Iv promising that the request -would be given consideration, the Prime Minister (the Eight Hon. G. W. Forbes) stated that in many municipal undertakings duplir cation now existed, and it was yio desire of the Government that such questions should be straightened out. In outlining the views of the deputation, Mr. J. Linklater, M.P. for Manawatu, said that xt had been laid down by the late Mr.Birks that the power board. districts < should contain both town and country areas. The country districts should; be included with the 'town.through which their produce Tvas Bold and their neeessai-ies purchased. It was later laid down by the then Minister of Public Works, the Eight j Hon. J.-G.; Coates, that the boardsshould be large and combine both town;' and country, but several local bodies ! :• had upset the ideal. AVhcre cities, boroughs; and' town boards had est'ab- { 'lished electric power supply some time '< previously and had reached the-pay able - stage, they <were loath' to join in with j the country areas, but in other cases, I the men, in charge of such schemes: had taken a bold, view and had sold their undertakings to the newly-con-Btituted power boards.- The classic 'exsamples of this were Auckland 'and. ■Wangamii. ■ ■■.■■■- . • Every person in Jfew Zealand, continued Mr.. Linklater, was contributing directly or indirectly to the establishment of. hydro-electric development as controlled by the State. Power boards were charged with the duty of - distributing power in their areas, and after making reasonable allowance for depreciation, had to return profits to the consumers in the form of lower charges. On the othgr hand, certain towns. «njoyed the benefit -of State-gen-erated power, which lowered their :power costs considerably, and they ,-spent the profits on other borough .works; while in many cases the borough ■councils as a result of ..State-generated /power had lowered their charges in ccr.tain directions, and had caused antagonism, in the rural supply area. ; BENEFITS CLAIMED. ; "Whore town and country had united ,and one authority administered the ( whole area, there was lessened, over.Lead expense, which was ultimately reflected in a benefit to consumers. The (obvious advantages of the proposals iWere that the control of both town and "country.loads gave a chance of greater diversity and greater gain to power boards, store expenses were decreased, there was no duplication of, overhead and stocks, the cost of' maintenance and office expenses was leduced, / the cost of distribution in the vicinity « of towns was simplified and profits • earned on electric schemes were returned to consumrcs^and not diverted , to other expenditure. ... It was a striking fact that the boards i which controlled both town and country ; were to-day in very sound positions, and were charging cheap rates. On the ; other hand, the boards which controlled only country" districts were charging j nigh rates, and. were either struggling Sunder a loss, of, at the best, making vonly a small margin of profit. In-most cases' where power boards were supplying power in bulk to a city or borough, the municipalities demanded their ,'power at the bare cost of service—a service provide.d primarily by the State i' —and the cities or boroughs so supplied ■ were in a position to which they were not entitled .because they catered only ; for the thickly-populated area 3 and left . the country districts to look after them- . selves. New Zealand was essentially a primary producing country, and stabv ility to-day depended almost entirely •on the. position of the primary pro;- --; duets. Therefore anything that could ) be done to promote' the prosperity of . the_ farming interests would bo reflect- \ cd in the greater prosperity of the cities , and towns. . ; MANAWATU CONTROVERSY. Mr. Linklater said that the question 'was a burning one in the Manawatu- ' Oroua district, and at the last Power VBoard election six of the members had 1 lost their seats. ' Other speakers spoke in similar ■ terms. ; Mr. Hutchison, representing, the ■ North Canterbury Power Board, said that there were five- counties and two > boroughs in the poVer board district, but the boroughs had never joined up in the general scheme. In his opinion, .; their action had violated the ;spirit ;of the Act.. The agreement which iad Tfeaphed in the Waitaki Electric f Power Board area showed what could v be done in supplying cheap power to ; the consumers; If Bangiora and Kaiapoi came in with the board, there would b& a substantial reduction' in overhead charges. . '<' A promise was given, by the Prime Minister that the matter would be in- ' vetetigated;. although an opportunity . would have, to be given to allow the ■ other side of the case to be presented.