POWER BOARD FINANCE

Greymouth Evening Star, 13 September 1934, Page 12

POWER BOARD FINANCE

TOWN V. COUNTRY ISSUE. [PER PRESS ASSOCIATION.] WELLINGTON, September 12. Town v. Country considerations enter into the dispute between the Palmerston North City Council and Manawatu-Oroua Electric Power Board, which came before the Chief Justice in the Supreme Court to-day. The City Council, and the Mayor seek an injunction restraining <the Board from striking certain rates, and also asked that the Board be directed to rescind' its decision to reduce the price of ■ electricity for milking motors. The position as alleged by plaintiffs is that the Manawatu-Oroua Electric Power Board drew up its estimates for a deficiency of £6700, which included £2OOO, being the estimated loss through reducing the price of electricity for milking-motors by id per unit. In order to make up this deficiency, it was decided to strike a general rate over the whole of its area, which includes the city of Palmerston North, and a special rate over the city of Palmerston North alone. The City Council alleges that with the exception of Kairanga County representative, the country members on the Board, with a majority of 8 to 4, display a bias against the city. It is contended by the city there is no need to reduce ~the price for milking-motors. The Power Board submits the reduction in the milking-motor charges was made after careful consideration by the Board, and was deemed to be in the best interests of the Board. The levying of general and special rates was a bona fide exercise of the powers of the Board.

Counsel’s submissions for the City Council were unfinished when the Court rose. They will be continued to-morrow morning. Evidence on behalf of the Power Board will probably also begin to-morrow. A large number of witnesses have to be called.