FIGHTING IN FIFTIES.

Manawatu Times, Volume XLIX, Issue 2732, 14 July 1925, Page 8

FIGHTING IN FIFTIES.

POWER BOARD DOWN TO £250 SERVICE CHARGE In Sale Of Power Offer To Borough Council BOARD ONLY TO SUPPLY ENERGY. FAVOURABLE RECEPTION INDICATED. The Manawatu-Oroua Power Board has turned down the offer of the Palmerston TjTorth Borough Council for the purchase of electric power from the Board at Government standard rates plus a £2OO service charge, and has made a counter offer of £250, with a stipulation that the Council shall take all its energy' from the Board. It is quite likely that this offer will prove acceptable to the Council, and the lengthy negotiations over this matter terminated. This decision was reached at a meeting of the Power Board yesterday. Mr J. |A. Nash, M.P., presiding. A letter (previously published) was read from the Palmerston North Borough Council, advising that it was prepared to purchase a supply of electrical energy from the Board in accordance with the terms contained in the Board's U tter of April 7, but that instead of the £4OO annual charge proposed, this amount be reduced to £2OO per annum, and setting out why the Council considered this was a reasonable charge. “Council’s Offer a Fair One.” The chairman (Mr J. A. Nash, M.P) said he thought that the subject should be considered from all viewpoints, both from that of the Council and of the Board. The Board had to remember that owing to its getting power in the first place from the Borough, it was able to give its suppliCiS current at an earlier date than would otherwise have been possible. Again, in the matter of the line, which cost approximately £4OOO, the Board must not forget that it should have put up a similar line, the cost of which -would have been one quarter of what it was. If it should happen that Mangahao broke down, then the Board could get a certain amount of power from the Borough plant to serve the district. Mr Tingey: “It would not have enough power to supply itself.” The chairman: "Our engineer is of the opinion that wc would be able to procure some.” He stated that he had seen the Mayor (Mr F. J. Nathan) who had shown him a letter from Mr Kissel. The latter had stated In the epistle that the offer of the Council for the purchase of power was a very fair one, and he hoped a settlement would be reached. Sir James Wilson; “It was wrong of him to write anything of the kind." The chairman: “I don’t know anything about that.” Mr M. A. Eliott; “The letter is addressed to the Borough engineer. It is not private.” The chairman: "It is not marked private.” He went on to state that the Minister himself was of the opinion that the Board had mot the Council in the matter, and that the Board should approach the Council with a view to buying its plant. Thai, however, was out of the question, as the Council had no desire to sell, and did not intend to so so.

"So the Council will have to take the whole supply from us,” said the speaker. (Hear! hear!) "After going into the matter, it is felt we should make a compromise, in view of the assistance given to the Board in the first place, to the effect that the whole of the supply of power he taken from the Board.

“The chairman thought this very fair, and felt that such an offer would be accepted by the Council. He moved that the Board make a counter offer of £250. the Council to take all Us power from the Board. Board’s Rating Power Questioned. Mr J. Hodgens here rose to a point of order, asking if It was right that the chairman should put his motion when there might be another motion to be put to the meeting. The chairman: “It is not known that there is another motion before the meeting.” He agreed, however, to hold his motion over.

Mr M. A. Eliott, another Council representative, then moved that the Council’s offer be accepted. He stated that the principal sufferer in the difference between the two bodies concerned in thcse x negotiations was the Government, which lost £6BOO per annum through the Palmerston North Borough manufacturing its own power. A great deal of what the Board's engineer said in his report was open to criticism. The offer by the Council was quite a fair one, and ho thought it should be accepted, in which direction he moved. Mr Hodgens seconded, endorsing the mover’s remarks. Ho remarked that while the Southland Power Board had practically decided to strike a rate of IJd in the £1 on the unimproved valuation, the ManawatuOroua Board could not so strike a general levy. The Borough Council held a license over ' the area. whitT would not allow of the encroachment on the unimproved value of the Palmerston North Borough. The chairman: “Whose opinion? Mr Martin’s?" Mr Hodgens: ‘‘Not Mr Martin’s.” The chairman: “I think you are wrong. There are two opinions on that. Palmerston North is as liable as any other part of the district, make no mistake.” Mr Hodgens went on the show the advantages the Board would get from the diversity. Mr. J. S. Tlngey supported the motion.and said that a matter of £SO was too small over which to negotiate any further. If the Palmerston North Borough Council was to take all Its

power from the Board, then he would like the price to be £lO per k.v.a. for the first year, another £B.

Preference Unfair. In speaking on the Council’s offer, the chairman said the Board had no right to give any advantage to the Council at the expense of the country, and he felt that the original offer or the Board was very fair. He moved as an amendment that the Board regretted its inability to accept the offer of the Council, but that it make a counter-offer for power to be supplied at Government standard rates, plus £250 service charge, the Council to take its whole supply of power from the Board, and the contract to be for five years. It should realised, ho said, that it would be far bettor for the Council to be linked up so far as Mangahao was concerned. Mr. D. Morrison seconded the motion.

“1 intend to oppose both the motion an,j amendment," said Sir James Wilson. He remarked, amid laughter, that hlo was quite confident the Board's engineer knew more about the subject under review than did Mr. Eliott. He felt it was unwise to take the step proposed, and that Mr. Waters should be supported. “The position is an extraordinary one,” said Mr. P. J. Small. "It Is not fair to ask the country members to vote before a candid expression of opinion had been given to the engineer.

Mr. Tingey said it was economically unsound for the Borough to generate its own power by the use of coal and the employment of needless labour. He was quite convinced that the first offer of £4OO was reasonable, but it seemed that the Board had to take a little risk as other Boards had done and try to make a profit out of the diversity. In further pointing out the advantages to the Board in the Council’s offer, Mr. Eliott said that the present load was 500 k.v.a., while if Palmerston North was brought in, there would be over 840 In addition. Expert Opinion. Upon being asked to express his view on the matter, the engineer (Mr. Waters) said that the Council had stated that the present transmission line was 1$ miles longer than it might have been. In explanation, he stated that it had been originally intended to run the line under the existing lines, but the Post and Telegraph Department would not allow it. Again, the speaker had always hold that diversity was a gamble. Upon being put to the meeting, the motion (that the Council’s offer be accepted) was lost by six votes to three, and the amendment carried. In addressing the two Borough representatives, the chairman said; “Now, if we had made it £3OO, would you not have been quite happy?” Mr. Eliott: “We could not have bound the Council to anything.”