THE H.B. TRIBUNE TUESDAY, JUNE 25, 1935 NATIONAL ELECTRICITY.

Hawke's Bay Tribune, Volume XXV, Issue 162, 25 June 1935, Page 6

THE H.B. TRIBUNE TUESDAY, JUNE 25, 1935 NATIONAL ELECTRICITY.

A message from Palmerston North to-day speaks of the dispute between the Council of that city and the Manawatu-Oroua Power Board having reached a critical stage. This has reference to a long-drawn controversy which has been in progress between these two local authorities with regard to the terms upon which the Board should provide the city with electric light and power. So far as can be gathered, the difference has arisen witli regard to the installation by the Council of a generating plant of its own -which comes into operation in the way of reducing the “peak load’’ upon which the Board’s quarterly charge for supply is based. The effect of this would seem to be that the Council would secure from the Board the very great bulk of its necessary electric supplies at a rate substantially lower than if it wore entirely dependent upon the Board for the whole of such supplies. In the course of the discussions a good deal of heat that is only indirectly of electric origin would appear to have been generated, with the result that the two bodies are at present a good deal at arm’s length. It is not thought for a moment that any outsider should intervene in the quarrel—for it has apparently degenerated to that position—that has thus arisen, but it certainly docs afford occasion for congratulating ourselves here in Hastings upon the entirely amicable arrangement our own Borough Council was enabled to make with the Hawke’s Bay Power Board, This agreement was reached without any undue development of friction and embodied terms that were satisfactory to both parties. In the result, as is generally known, the Board took over the whole responsibility for the supply of electricity to the town and to the individual burgesses and, so far at any rate, with complete satisfaction to all concerned. At the same time the municipal installation was also taken over by the Board as a stand-by plant, and upon terms which were also satisfactory to both sides, thus relieving the town of a capital liability in connection with which there was always a considerable amount of risk. All this was effected by quiet negotiation in which nothing but mutual good will was displayed and only an agreement as fair as possible to both was sought.

As has been said, we do not presume in any way to discuss phases that may be peculiar to the dispute affecting Palmerston North. It may, however, be urged as a general proposition that all local bodies should, as far as is reasonably practicable, work in with the Power Boards in the direction of promoting the fullest possible use of the current which the State hydro-electric system is capable of providing. It was on the assumption that this would be

the case that these schemes were undertaken, and it is only if that assumption is justified that they can be operated to national advantage —and it is the national advantage that should be paramount. It may, of course, be said that in some instances these schemes have been instituted at such an unexpectedly extravagant cost as to preclude supply at the rates originally contemplated. But the heavy expenditure has been incurred, imposing upon the taxpayers'of the country a correspondingly heavy and inescapable liability. The only way in which that liability can be made lighter is by a general disposition to make use of the resulting product. To work together to that end is the manifest duty of all local authorities.

It is, of course, recognised that in individual instances there may be some apparent advantage to be gained from local installations, but it cannot but be doubted that this must at best be only temporary. In fact, it goes almost without saying that eventually all will have to fall into fairly complete dependence upon the national sources of supply, and it seems equally plain that the sooner that time comes about the better for the Dominion community as a whole. As it is at present there is a vast and expensive productive capacity which is virtually running to waste, returning nothing upon its capital cost. It is only by bringing the potential product into profitable consumption by the people of the country that there can be any hope of bringing'the charges for current down. As in so many other business concerns, when over-head outgoings are fairly constant, it is the volume of turn-over that makes for cheapness. Anything that retards an

increase in this respect must necessarily make for the maintenance of higher rates to the ultimate consumer. On this broad basis, therefore, the general aim should be to bring into consumption as much as possible of the current which the Government system is capable of generating and transmitting.