ELECTRICITY AND GAS

Manawatu Standard, Volume XLVI, Issue 172, 22 June 1926, Page 6

ELECTRICITY AND GAS

SUGGESTED SALE OF BOROUGH SCHEME?

CR. ORAM DESIRES CONFERENCE

MOTION NARROWLY DEFEATED

A motion advanced by Cr. Oram at the meeting of the Borough Council last night, that the council offer to discuss with the Mana-watu-Oroua Power Board the sale to it of the municipal electric light and gas undertakings, was defeated by a bare majority. Contending that there was a feeling about town that personal interests were hindering negotiations between the two bodies, Cr. Oram suggested that a frank, ophn conference would tend to remove the feeling of unrest and show whether there was “a skeleton in the cupboard.” Possibly, he stated, although lie did not necessarily advocate it, the elec- ' trical scheme could be sold to the Power Board and the gasworks disposed of privately, as already one offer had been received for the latter The text of the motion / was as follows:

“That, in terms of the recommendation of His Worship the Mayor in his statement submitted to the council at its special meeting on May 28, the Power Board be informed that the council sitting as a works committee is prepared to meet the board or any committee of the board in a round the table conference to discuss in all its phases the sale to the board of the borough power and light undertakings.” VIEWS FRANKLY EXPRESSED. Speaking to his motion, Cr. Oram said it seemed to him that at least no harm could be done by investigating the matter a little further in the form of a conference. He was going to express his views on the question fully, and he trusted that, whatever ho might say, would be accepted in the spirit in which, it was uttered —in the interests of the municipality. There was, he proceeded, quite a large body of feeling in Palmerston North that the failure of negotiations between the council and the board was duo to personal animosity between the Mayor (Mr F. J. Nathan) and the chairman of the Power Board (Mr J. A. Nash, M.P.). He would not discuss or comment upon that, but he assured the council that, as lie had stated, such a feeling really existed. “You must remember,” he said, “that, at the head of the Power Board, is Mr Nash who represents the borough in Parliament and all his interests are centred in this town. With him Palmerston North comes first, last, and all the time. He has, I believe, nob one interest outside of Palmerston North and the borough as a whole.” Mr Nash, Cr. Oram added, would not, consciously at any rate, advocate any scheme to the detriment of Palmerston North, and he (Cr. Oram) could not see that anything but good could come from a frank, open discussion between the two bodies. Ho and the council generally had considered the very able roport on the question of the sale of the electrical undertaking prepared by the Mayor, but it was an ex parte statement and the council should hear both sides. Was it not possible that the council was attaching too much value to one side of the question and not enough to the other point of view? Of course, the Power Board might be doing the same, but the only manner in which both bodies could be really made to see each other’s points of view was to meet in frank, open conference. “BELITTLING EARLIER COUNCILS.” Proceeding to deal with offers to purchase the borough electric light and gas schemes, Cr. Oram declared that Mr Nathan on several occasions had belittled the work of previous councils which he (Mr Nathan) had said had left him, upon assuming office, with schemes constituting liabilities and creating a position out of which the council had to get as best it could. Well, the proof of the pudding was in the eating, and the fact that the electrical scheme was now declared to be a profit-making concern disposed of the “white elephant idea.” Offers, in fact, to buy this scheme had been made by the Power Board and an offer to purchase the gasworks had also been made by a private syndicate. If the schemes were “white elephants” surely those offers would not have been made ? Probably, tho Power. Board would say that it could not buy both schemes, but it had not had tho chance to say so. Ample safeguards for tho interests of the municipality could bo provided if the council sold the. electrical scheme to the Power Board and the gasworks privately. Not that ho advocated either course, but there could bo no objection to a conference and tho present unrest and uncertainty might be removed. COUNCILLORS’ OPINIONS. Seconding tho motion pro forma, Cr. Edwards said that to discuss selling the gasworks was waste oSvtimo, but the sale of the electric light undertaking might be considered. It was a vital matter, meriting the closest attention, and if the motion was carried he would move that the question be given a whole night’s discussion, or even more, in committee, in order to probe the whole matter thoroughly. Cr. Eliott favoured securing the opinion of a prominent, outside engineer, by which, he said, a good deal of misconception and misunderstanding might be cleared away. “It is not a technical matter,” said the Mayor. Cr. Eliott disagreed, stating that to him it was a highly technical matter. Cr. Graham concurred with this latter view, adding that- a conference, even if fruitless, could do no harm. Cr. Fitzherbert deprecated re-open-ing the question, stating that it had been clearly, explained and thoroughly investigated before. _ ■ Complete agreement with Cr. Fitzherbert was expressed by Crs. Hodgens and Canton. “MATTER OF FINANCE ONLY.” “It is not a matter of engineering, but one of finance only,” said the Mayor in reply. He stated that he did not view with favour Cr. Eliott’s suggestion that engineering advice be sought, for the reason stated. If the council had followed his report on this matter it must be clear that the municipality had a lot of money invested in its gas and electric schemes and that, if the latter wore sold, a liability would_ remain. Due to the system of administration, fortunately, and lafgely at the expense of the gasworks, tho electrical scheme had been made payable. Hitherto a profitable venture, the gasworks were now a losing concern and it needed the profit from the one to balance the loss on

the other. To sell the electrical scheme would mean sharing its profits with the whole of the Power Board's district, while the council would be left with a losing concern in the gasworks. He would, oppose the motion. Replying, Cr. Oram reminded the council that his motion merely was that the council confer with tho Power Board on the salo of tho two plants conjointly. While it was believed that the electrical scheme was paying, experts “on tho other side” said that there were relative items which had not been taken into account. He appealed to tho council to get down to bedrock and see if there was a “skeleton in the cupboard.” The council should at least investigate the Power Board’s statements. The motion was then put and lost by five to four. The voting being as follow: For: Crs. Oram, Graham, Eliotl and Edwards. Against: Tho Mayor, Crs. Fitzherbert, McLeavey, Low, Canton anc Hodgens. CIl. EDWARDS’S NOTICE OF MOTION. At the close of the meeting Cr. Edwards gave notice of motion that the Power Board’s earlier offer to purchase the borough electrical scheme on the lines of its purchase of the Feilding scheme be reefinsidered by the works committee on a date to be determined.