POWER DISPUTE

Manawatu Standard, Volume LVI, Issue 62, 11 February 1936, Page 2

POWER DISPUTE

CITY AND BOARD. A CLARIFIED POSITION. Forwarding a cheque for £4OBB 19s 3d on account of electricity supplied by the board to the Palmerston North City Council during the quarterly period ended December 31 last, the city solicitors yesterday- nutiried the Manawatu-Oroiia Power Board that the City Council declined to meet the remainder of the account of £6636 0s 8d that had been tendered. They were paying under the rates of the old contract, which expired on March 31 last, and the question of further liability must remain open till the litigation was/settled. „ The managing-secretary (Mr K. IV: Eglinton) stated that the board had paid the Public Works Department on a similar basis. On Saturday it had received a further bill for £174, being the Public Works Department’s penalty- on the balance outstanding. Mr M. A. Eliott: Will the Court case come on at the present sitting? 1 understand that it will not. The chairman (Mr C. G. C. Dernier): That is so. I have a short report to make on the matter. aunsequently, reporting on the conference held by' representatives of both the City Council and the Power Board with the Minister of Public Works (Hon. R. Semple), in Palmerston North last week, the chairman said they had been informed by the Minister that the Public Works Department would deal direct with the City Council so far as the penal rate for running its own generating plant was concerned. That had perhaps been the biggest bugbear in frustrating an agreement between the board and the City Council. The board had been “carrying the baby” for the department, and the City Council liad had to fight the board to fight the department. The board and the City Council were to negotiate the service charge, and the contract committee intended to discuss that matter after the board meeting this afternoon. Mr J. Hodgeus, M.P., -said the case had been stated very fairly by the chairman. The issues had been clarified, and if the activities of the PublicWorks Department could be stayed there was a possibility of the dispute being settled. Mr P. G. Guy said that in fixing tlie service charge the board would have to consider whether the City Council was going to take the full load or continue to cut the peak. The chairman said that would be a factor, but the board was no longer concerned with the penal rate. Mr N. Campbell: I take it that the Minister gave an assurance that there would be no penal charge. The chairman : He did not give any assurance at all, but said we would be relieved of all responsibility for that. Members: Well, that covers it. Mr Guy said any negotiations entered into should be by- the full personnel of both bodies. Mr Hodgens said the Minister was anxious for the Power Board and City Council to confer before February 18. He considered that four representatives from each body' would be adequate. Subsequent to the board meeting, one was held by the contract committee.