POWER SUPPLY DISPUTE

Evening Star, Issue 22069, 1 July 1935, Page 3

POWER SUPPLY DISPUTE

THREAT TO CUT BOROUGH OFF ULTIMATUM TO COUNCIL [Per United Press Association.) PALMERSTON N., June 29. There have been sensational developments in connection with the power supply dispute between the Palmerston North City Council and the ManawtuOroua Power Board.

Following upon an ultimatum from the council insisting upon a continuance of the supply when the temporary arrangement expires at midnight' to-mor-row, the board notified the council this morning that, under the conditions of the board’s contract _ with the Public Works Department, it had no alternative but to cut off the city supply unless an agreement was reached in the meantime. The City Council has informed the board that the conditions advanced by tho latter are unacceptable.

>The situation is now serious, and preparations are being jnade by ,the city to practise rigid economy in the use of electricity in an endeavour to keep within the limits of the city’s own generating plant, which is insufficient for normal needs. It is understood that the City Council’s policy in maintaining the service will be to supply power to its own industrial consumers first and then to Government institutions, most of which are'controlled by the Minister of Public Works. It is considered likely that on Monday the City Council will apply to the Supreme Court for an interim injunction restricting the board. MINISTER INTERVENES, June 30. The mayor, Mr A. E. Mansford, last night received the following telegram from the Acting Prime Minister, Sir A. Ransom: —“ I have just been advised by the Minister of Public Works that, although the dispute between the Power Board and the City Council has not been_ settled, power will still be available 'for the city from the Power Board on and after Sunday night.” A subsequent message received by the Power Board contained the Minister’s consent to the board supplying the city, but stating that the price to be paid must not be less than .4d per unit, which, it is understood, the council is not likely to consider; consequently what will happen at midnight is still in doubt.