MOOTED CHANGE

Gisborne Herald, Volume LXXIII, Issue 21990, 6 April 1946, Page 4

MOOTED CHANGE

SALE OF ELECTRICITY VIEWED WITH CONCERN MUNICIPALITIES' STAND (P.A.) WELLINGTON, April 6. The attitude of the Municipal Electric Supply Association to the recommendation of the Parliamentary Committee that the distribution of electricity should be by power boards only was defined last night by the president, Mr. Will Appleton. He said the association viewed the recommendation with concern. It was the unanimous opinion that such a change would be detrimental to the townspeople and to the system as a whole. The association represented _ every borough and city selling electricity except Christchurch. Practically all municipalities had been selling power for 25 years, most of them before the power boards existed. The distribution was undertaken in good faith that the State would honour the agreements made and Gazetted —the right to erect lines and supply current for 42 years. Six and a half million pounds of the people’s money had been put in municipal electric concerns, and a total population of 545.000 was supplied. They had 175,000 satisfied customers. Helped the Government Many municipalities helped the Government to start the hydro-electric schemes years before any power board was formed. The municipal schemes had been outstandingly successful, and tlve current could not be supplied cheaper under any other scheme, said Mr. Appleton. Practically all the electrical engineers in New Zealand were borough-trained. The capital outlay of the power boards was £14.000,000 and their loan liability £12,000,000, or 85 per cent. The municipalities’ capital outlay was £0.500,000, and their loan liability only £3,000.000, or 50 per cent. The business had been built up on revenue. The municipal concerns were so sound that no loans had been raised for some years, and in 10 years there would be practically none outstanding. The balance sheets and statements of accounts were published by legal requirement, but this obligation was not imposed on power boards. Many municipal schemes were in a position to augment State supplies—without their aid the State supply in the North Island would be in a parlous state; in fact, without the aid given it would break down. Last year the municipalities generated 180,000,000 units, as against 86,000,000 by power boards. This showed how the former hacl augmented the State supply. Reduction in Charges The average reduction in charges since the municipal schemes started was 70 per cent. In 15)28 the average was 2.5 d; now they sold at .9d. Any change would mean that the consumers would pay more, and in some cases a great deal more, for an inferior service. It was a reasonable assumption that a board administering 100 square miles or more could not give anything like the attention possible by a municipality with an area of, say, four square miles. The borough or city consumer would get poorer representation on the board. The latter usually consisted of county men from a wide area, generally one or two from each county. A borough or city council had no such distinction. Instead of 10.000 consumers in the borough having 10 men to look after their interests, they might have only one.

The position of the municipalities, he claimed, was. in short —they sold current before any board; they had been more successful than most boards: they sold current cheaper than most boards: they gave better service; they had trained a large number of men; they hacl a license to sell which, once Gazetted, should be honoured; they did not wish to join any board: before being forced into any board they demanded the right to vote on such a proposal. ___________