HINTS OF ACTION

Evening Post, Volume CXXI, Issue 83, 7 April 1936, Page 17

HINTS OF ACTION

.HYDRO-ELECTRIC POLICY

THE MANAWATU DKSPUTE

<Uy Telegraph—Press Association.)

PALMERSTON N., This Day.

Hints that action of a revolutionary nature was pending in the hydro-electric supply o£ New Zcniand, with particular application to the long-standing dispute between the Manawatu-Oroua Power Board and the Palmcrston Nocth City Council, were dropped at a meeting of trie former body yester-

day afternoon

Mr. C. G. C. Dermer, chairman,, stated that at the last meeting of theboard a resolution had been passed to proceed with litigation against the City Council. Subsequently, however, the contract committee of the board had met and decided that the chairman and the managing secretary should go to Wellington to ascertain the position regarding the penal rate previously imposed by the Public Works' Department,- the question at issue being. whether to sue only on the service charge. The Minister, when interviewed, had expressed regret that the dispute was still unsettled, and had intimated that he was calling very shortly a conference of the Palmerston North City Council and Public Works Department representatives with the Manawatu-Oroua Board and the Minister of Finance.

Mr. Dermer said he had expected this meeting to take place before now, but it had not, and in the meantime the decision to proceed with litigation had been deferred. Mr. J. Hodgens, M.P., had been called into discussion with the Minister, and had expressed the view that a court case would not settle much. The dispute was really between the Public Works Department and the City Council. Mr. P. G. Guy asked, what was to be the basis of the proposed conference. The chairman: It is and endeavour 1o settle a dispute between the Public Works Department and the Palmerston North City Council. Mr. Guy: Then there is nothing about nationalisation? The chairman: There must be. I think they are going into it. It seems there is to be no statement until Mr. Semple has gone into the question of funds with the Minister of Finance. Mr. Elliott inquired if that was to imply that the Government was to take over all Power Board undertakings. , ' The chairman: I understand that, but there is nothing concrete. I think that if possible the Government will take over the whole business.