TURNED DOWN

Gisborne Times, Volume LXXXIV, Issue 12903, 2 July 1936, Page 5

TURNED DOWN

STATE OFFER FOR MONOWAI POWER SCHEME.

exchange and sinking fund EXCEED £65,000.

1 Press Association)

INVERCARGILL, July 1

' Tlib Southland Electric Power Board, lit a- special mooting to-day, reaffirmed its decision not to hand over the Monowai scheme to the Government. The motion was carried bv seven votes to five.

A motion sponsored by Mr. G. Wravtt to rescind the board’s vio:i9 resolution, rescinding the decision "to take a’ referendum on till question, was Tilled out of order on the grounds that the procedure * was unconstitutional: Instead ,a division was taken on a report presented by the chairman (Mr. J. T. Carswell) on the report, outlining the board’s reasons for the retention of the scheme. '■ ' ”>■

•Mr. Carswell said that, after full consideration, they were well satisfied* that the Government offer was quite unacceptable. - The one financial advantage it offered, in addition to what tho board could offer to-day, was the elimination of the land rate. This rate would have been entirely unnecessary if it bad not been for tho exchange (which the Government was pledged to reduce) and for the high rate of the sinking fund fixed, which the Minister declined to take any steps to vary. Tlie total of those two items (exchange and sinking fund) exceeded £65,000 annually.