THE ELECTRICAL SCHEME.

Lyttelton Times, Volume CXV, Issue 16491, 5 March 1914, Page 6

THE ELECTRICAL SCHEME.

,Tiie statement made by members of the deputation that waited on the Minister of Public Works yesterday suggests the possibility of a conflict of interests between the Government and tho City Council in regard to the Lake

Coleridge scheme. Tho Council is contracting with the Government to take a very substantial proportion cf the current generated, and it is naturally anxious to bo given as wide a field as possible, so that the rates may he kept low and tho service may be administered under the most economical conditions. The Government, with power over and abovo tho Council’s requirements, is looking for opportunities to soli current outside the city area, and is already, it seems, canvassing for orders, and the Council is faced with the probability of the Government securing a good many of the large customers in the district. The position from the point of view of the cityauthorities is admittedly unsatisfactory. because the success of the Government’s efforts to obtain customers direct is bound to prejudice the city’s prospects of bringing the surrounding districts into its own arrangement, and the Minister’s inability to give an assurance that the Government’s rates will not be less than the city’s prices certainly complicates tho problem. Obviously, if the Government can offer current to customers at rates lower than those charged by the city, the business will go to the Government direct. Tho city has a strong claim to consideration in the matter, as it has relieved the Government of a big burden of anxiety, and it would be a wise policy, we think, for the State to meet the wishes of its best customer and to leave the distribution as far as possible in the hands of tho Council. It is very evident now that the Council’s contract with the Government is far from being as safe an arrangement as it was supposed to be, and it begins to look as if the Public Works Department had got the best of the bargain. So far the Minister has given nothing away, and although he promises to hand over the Government’s direct contracts with consumers under certain conditions, he is himself to be the judge, of course, whether the conditions are fulfilled or not. Mr Fraser’s view, we gather, is that the Council’s position is sound enough and that it is now seeking opportunities of making a profit out of its venture. We believe that the city can look forward to the future of the enterprise with confidence, but there is an element of speculation in its contract and the position is not improved by the policy that has been adopted by the Department.