POWER SUPPLY.

Manawatu Standard, Volume LVII, Issue 194, 17 July 1937, Page 9

POWER SUPPLY.

AGREEMENT WITH GOVERNMENT

THE CANCELLATION CLAUSE,

Concern was expressed at the last meeting of the ManawatuOroua Electric Power Board, when an agreement came forward for signature, between tho Public Works Department and the board for tho supply of power for a fiveyear period, that included in the document was a clause providing for its cancellation at any time on six months’ notice. It was explained that the clause was one inserted in all recent agreements of that character, and it Was also pointed out that if the Government sought to nationalise the power undertakings of the Dominion all such agreements could be cancelled by an Act of Parliament. The decision of the board was that a deputation be sent to Wellington to interview the Government on tho matter and to secure an undertaking that the clause referred to would not be brought into effect, because tho affairs of the board in the future could better be considered if that consideration was not hamSered by such a clause. It was also ccided, in view of the fact that Palmerston North city would also be affected by the clause that it would bo most desirable for the City Council to bo represented. In consequence, a deputation yesterday waited on the. acting-Prime Minister (Hon. P. Eraser) in regard to tho matter. The members of the deputation were Messrs J. Hodgens, M.P., member for the district and a member of tho Power Board and of the City Council, K. W. Eglinton ( managing-secretary of the Power Board), W. A. Waters (chief engineer of the board), G. Tremaine (deputyMayor of Palmerston Tsorth and chairman of the council’s lighting committee), and J. W. Muir (city electrical engineer). Mr Hodgens informed a ‘ Standard reporter to-day that lie had introduced the deputation to the acting-Prime Minister, there also being present Mr J. Wood (Chief Engineer of the Public Works Department) and Mr F. Y„ M Kissel (Chief Electrical Engineer of the department). The acting-Prime Minister had been very favourably disposed toward the deputation. He had said that he realised that, having come to an agreement after a long-standing dispute, the parties would be suspicious of anv restrictive clause which was attached to the agreement for supply. He was satisfied that there was no_ intention of' embarrassing the situation. He could not, however, give a definite opinion then, because lie wished to discuss the matter with the actingMinister of Public Works (Hon. P. C. Webb) before arriving at a decision.