POWER-SUPPLY DISPUTE

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

POWER-SUPPLY DISPUTE

Crisis in Palmerston North

By Telegraph—Press Association. PALMERSTON N., June 2-1

Developments in tho power-supply dispute between the Palmerston North City Council, and the Manawntu-Oroua Power Board have reached a critical stage.

At, a special meeting of the board this morning to consider the situation after the temporary arrangement with the Public Works Department expires on Bunday next, the board- signed a contract with the Public Works Department for five years' supply, but an important clause stipulated that tho board could not without the Minister’s consent continue to supply Palmerston North while tho latter continued

to operate its own generating plant, which had been used to cut peak loads, thus keeping down charges. The board rejected the latest offer by the City Council as tho basis of a flve-ycars contract. It was decided, if the city required a temporary supply, to impose an annual service charge of £4500, or double the board’s offer under contract terms. Tho city’s generating plant is inadequate to supply the city’s requirements until tho new machinery now on order is installed.