ELECTRICITY SUPPLY.

Manawatu Standard, Volume LVII, Issue 196, 20 July 1937, Page 2

ELECTRICITY SUPPLY.

CANCELLATION CLAUSE

Stroll" criticism of the alteration of the draft agreement for the simply of power from the Public Works Department to the City Council was voiced bv the Mayor (Mr A. E. Mansford) when the council last evening received a reoort from the chairman of the lighting committee (Cr G. Tremaine) and the city electrical engineer (Mr J. W. Muir) on an interview they had had with the acting-Prime Minister (Hon. P. Fraser), on Friday, in reference to the matter. As reported on Saturday, when the original clauses had been agreed on the term of the contract was for five years, hut when the contract was received for signature it contained an extra clause providing for cancellation on six months’ notice.

The report presented, at last evening’s meeting of the council outlined the representations made and gave the reply of the acting-Prime Minister that lip would advise the parties concerned (the Manawntu-Oroua Electric Power Board and the council) after he had interviewed the netiug-Ministcr for Public Works (Hon. P. C. Webb).

The Mayor, moving that the report be received, said that were a legal firm to do the same thing it would be very severely don't with. The council should refuse to sign the agreement in its present form. They had thought they were making a five years’ agreement hut what had been offered was practically a six months’ agreement. Cr Tremaine said lie had taken it that when the matt's* 1 had been referred to the acting-Minister for Public Works Palmerston North would he exempted from having the clause in the agreement. . ' ■' Mr J. Hodgens, M.P., said he had told the Power Board that he was sure that the clause had not been inserted at the Minister’s direction. The Mayor said the council had a letter from the department’s chief electrical engineer (Mr F. T. M. Kissel) stating that the clause had been inserted at the Minister’s direction. The report was then received.