FINAL STEP TAKEN

Manawatu Standard, Volume LIII, Issue 243, 11 September 1933, Page 2

FINAL STEP TAKEN

3.45 P.M. EDITION

POWER BOARD RATE. STRUCK OVER CITY AREA. DISCUSSION BY BOARD. The Manawatu-Oroua Power Board, as reported on page 7, this afternoon took the final step in imposing a, separate rate of 7-20 d in the £ over the city of Palmerston North by passing a resolution which confirmed a special order to this effect. Prior to the confirmation of the minutes of the last meeting, Mr J. Hodgens inquired if they included the special rating order, and whether the adoption of tho minutes confirmed the special order. The chairman (Mr C. G. C. Dernier) intimated that he proposed to deal with the latter matter in a separate resolution, but he was not sure that the confirmation of the minutes themselves did not have that effect, although they might not go any further than being a record of the business at the last meeting. He then moved the confirmation of the special rating order dealing with the city. Mr W. P. Bickers seconded the motion.

“The resolution has been advertised for the statutory period as provided for ill the Act,” commented Mr J. Hodgens. “Are there any objections?”

Tho chairman: Yes, there are quite a number from Palmerston North ratepayers. Mr Hodgens: Then do you not think that it would be as well to give full consideration to tho objections lodged ? Mr P. G. Guy asked if any objections had .been received before the agenda paper for the meeting was sent out.

The managing-secretary (Mr K. W. Egliuton) replied they had, and as they had been pouring in all the time he had considered it advisable to keep them all and place them before tho meeting. “I uelieve that there are a little over 800 objections from 5500 city ratepayers,” observed Mr J. Boyce, “so that it looks as if Palmerston North is not so much opposed to the rate, in spite of the hot air at Friday’s meeting.” It was reported by the managingsecretary that 860 objections had been received to the rate.

The chairman said that all correspondence in connection with the rate could be received. He presumed that members did not want all of it read, excepting the protest from the ratepayers’ meeting. This letter, with the text of the four resolutions passed, was read. “We can have one or two samples of the other letters read if you wish,” said the chairman. “They are purely informal.”

“There is no need to read them,” stated Mr Nash. “It is of no use carrying the discussion any further, as the* resolution will be carried by the majority. Assuming that you cannot put this rate on Palmerston North, what will be the position of the other parts of the district? Will they have to pay the uniform rate? The chairman: Yes. Mr Nash: Then you will go ahead and collect it?—l presume so. Mr Nash: Do you honestly and sincerely think that this special rate can be inflicted on Palmerston North? —1 honestly do. Do you honestly think that the Courts would uphold it?—Yes, I do. In face of all the legal opinions we have had?—l contend that they are favourable to the board’s action. Mr Nash: Then it seems that the sooner the City Council acts the better. We are only beating the air here.

RATE UNWARRANTED. Mr Hodgens stated that he had asked the board to obtain an opinion from the Crown solicitor, but that had been defeated, and he had subsequently been informed that his proposal was not the proper course to take. The Auckland solicitor’s opinion had depended on the answer as to the question of the reasonableness or otherwise of the rate, and he had practically said to the board that lie advised them not to go on with it, but if they wanted to spend money, let them. Mr Hodgens could see hundreds of pounds of_ the ratepayers’ money being spent in a test case which would be taken to the highest courts in the British Constitution, and he wondered if anybody would be any better off in the finish. He could not possibly see liow the rate was warranted. The city had not taken exception to the uniform rate, although it would probably have had a good case in objecting to that. It had left it to the county councils. Mr Guy had been using the old phrase that Palmerston North was not pulling its weight so far as the board was concerned. Mr Hodgens considered that the city had carried out every agreement in its entirety, and would continue to do so. He did not think the board was losing money, in any way in supplying power as at present to the city. Mr Guy: Of course it is. That declared Mr Hodgens, was non. sense, it had been suggested that the city was “milking’’ the board, but the board was certainly “milking’ the city. There had been a feeling round the' board table which he thought was regrettable. A country member had said that they had made up thenminds to make Palmerston North pay the piper. This was a very bad spirit. Was it to take a Court case to settle the matter ? ‘ Mr 0. McElroy stated that the first agreement was to supply the city' with up to 850 k.v.a., but the transmission line became overloaded with the city taking over 1200 k.v.a. The board could have held the city down to 850 k.v.a. Mr Nash : The city could have put in additional machines, and that would not have been an advantage to the board. Mr McElroy: You know better than that. The board allowed the contract to be broken. Mr Hodgens: No, it was the other way round! Proceeding, Mr McElroy said that Palmerston North city had been acting as a middleman. The board, in supplying it with electricity at standard rates, had been securing no profit. The city received the power at wholesale rates and sold it at a huge profit. Mr Hodgens: That is provided for in the Act. Mr McElroy said the board had to make good all damage to the lines by damage and storms, and the city did not contribute one copper towards that.

Mr Boyce said that he agreed with the previous speaker. The fact that under 900 objections had been forwarded by city ratepayers proved conclusively that they were not protesting so much. The, responsibility for any litigation would rest entirely with Palmerston North. The board had expressed a readiness previously to confer with the City Council, but the overtures had been rejected.

While the board was making these representations to the ' City Council,

said Mr Nash, it was agitating to bring urban areas into amalagamation with power boards. The chairman: We had a light to do so. , „ Mr Nash: But it was a tactless action. “PREPARED TO MEET CITY.” Mr Boyce said that although the rate was struck the board was still prepared to meet the city. It need not be collected if a satisfactory arrangement with the city could be arrived at. The city was making an annual profit of £13,000 or £14,000 while the board was making a loss Mr Hodgens: You are not making a loss. • ~ Mr Boyce: The Palmerston North ratepayers are puinning their faith on a change in the legislation. They know that they have not a leg on which to stand under the present Act. However, whichever way the matter goes, the ratepayers will have to pay for it. . Mr Hodgens: You are taking the money off the city to give to the dairy farmer. Mr Boyce: We are losing revenue on the milking motors. Mr W. McKay said the board should contradict statements made alleging that it had reduced tho milking motor tariff to create a deliberate loss. The board had reduced the charges as a business proposition to induce greater consumption' and more revenue.

The chairman said the whole matter had been thrashed out. At the ratepayers’ meeting statements had been made which were purely political propaganda. Mr Hodgens objected to that, saying that the reduction in the milking motor charge had only been carried by four votes to three by the committee which dealt with it.

The chairman said that they were prepared to justify the reduction before the Court. Their position was perfectly clear. Palmerston North spoke of the board “manufacturing” a ioss. What about their “manufactured” propaganda iff the objections lodged? Mr Nash: You have the money available without the need for a rate. The chairman: We have not. Mr Nash referred to the Australian interest payments. The chairman: Previously you told us distinctly that we could not use the money. We have to recognise that the Palmerston North representatives are here, of course, to look after the city s interests. Mr Nash: Whose do you look after? —-The outside districts. Mr N. Campbell said that if the city area would amalgamate with the board the electricity would be cheaper for all, as the district was ideally situated. The resolution confirming the special order was then carried, Messrs Nash, Hodgens and Batclielar recording their dissent. Mr M. A. Eliott was absent. Subsequently, on the motion of Mr Guy, a special committee consisting of the chairman and Messrs McElroy, Campbell, Bond, Boyce, McKay, and himself was set up to deal with any Court troubles experienced in dealing with the rate over Palmerston North. This committee met for a consultation after the meeting. Numbers of objections to the uniform rate already struck were received from individual country ratepayers.