Complete Amalgamation Desirable

Manawatu Times, Volume LIV, Issue 6636, 25 August 1931, Page 3

Complete Amalgamation Desirable

LOCAL BODIES AND RIVER BOARDS.

FOR DISTRIBUTION OF ELECTRICITY.

“That in view of the anomalous position which lias arisen in the sale arid distribution of electricity by reason of the fact that certain local authorities possessing their own licenses for generating and distributing electricity within their boundaries and having only partly amalgamated with the Electrical Power Boards, and purchasing Government generated electricity at the same rate 3as the Power Boards, but retaining their own profitable retail distribution and thereby defeating the underlying principle of the public hydro-generation of electricity, this Chamber respectfully asks the Hon. J. G. Cobbs to request the Government to consider the advisability of introducing legislation; this session" shelf local “authorities to" completely amalgamate with their respective Power Boards for the purchase and distribution of electricity upon the termination of their present contracts.’’

The foregoing resolution was carried unanimously at a special, meeting of the Feilding Chamber of Commerco last evening, called to consider the question. Mr. J. S. Tingcy presided over a good attendance of members. Mr. P. G. Guy, Feilding’s representative on the Mana-watu-Oroua Pow-er Board, sent an apology for absence aud in a letter set forth his advocacy for an amalgamation of neighbouring Power Boards as a means towards lowering costs to the consumers. In moving the resolution Mr. Tingcy said that his reason for making the proposal was that ho considered the time never more opportune—the physocological moment had arrived for action. He quoted the position of the primary producer who had suffered such a severe set back and the fact Jlmt. they were now largo consumers of electricity reu; tiered it desirable that every tiling possible should be done to cheapen the costs of production. It was therefore appropriate that action should be taken to remove the anomalous position which existed to-day' iu the Manawatu-Uroua Power Board’s area. Mr. Tingcy went on to recall the negotiations which took place prior to llio formation of the board, reminding the mooting of the visit of the Hon. Mr. Coates to Fcilding when Palmerston North and Pending wero invited to sell their plants to enable the board to proceed. While Feilding voluntarily sold out Palmerston North did not make any move although it was expected that it would and it was never contemplated that the, larger borough would refuse to come in. 'This was history and tho position to-| day was that Palmerston North was] making £15,000 by? virtuo of tho privi-l leges it enjoyed under its license top manufacture and sell electricity. There j were other towns similarly situated and 1 what applied to Palmerston North applied to the other towns concerned. The point about Palmerston North’s position was that it purchased power at wholesale rates and made a profit out of it.' There would bo no objection to the making of a profit provided it was made on the electricity manufactured by its own plant, but here Palmerston North was making a profit out of a public utility. The Power Board could not make a profit —it was not allowed to, but Palmerston North could and "did make substantial profits. Tho speaker considered that the Public Works Department, which was the Government, was largely responsible for this position and it was never more urgently necessary than to-day to have the situation altered. These towns wero adopting a selfish attitude—they were taking advantage of a public utility for profit making. All the towns concerned were not on the same footing—their arrangements with the Power Boards differed somewhat but all retained the right to retail power within tho town. Feilding had done tho right • thing —likewise Auckland, and it was high time the anomalous position was removed, it was unfair to tho country districts in the board’s area and to Feilding that the existing situation should bo permitted to continue (applause).

The Mayor (Mr. C. E. Taylor) had pleasure in seconding the motion and proceeded to support the view that it was never contemplated that Falmcrston North would stand out. He thought it fair to say that the fact that larger bodies wero associated with Power Boards, resulted in those hoards being ablo to purchase iu bulk at a lesser rate than otherwise. Ho agreed that in New Zealand town aud country were entirely interdependent aud as both Palmerston North and Feilding were both dependent ou the country it was right and proper that the country should have the benefit of the lowest possible rates. If the Government refused to introduce the desired legislation then he thought that Uio proposal of Mr. F. G. Cuy for an amalgamation of neighbouring boards might well be investigated to ascertain the extent ot the benefits, if any, which would accrue. Mr. G. Buckman considered that the proposal was on all fours with the potation which the Feilding branch of.the Manawalu-Oroua'Electricity Consumers' Association was circulating throughout the district aud which was meeting with so much support. It was proposed to hold a conference in Feilding next month of the delegates of tlio several branch organisations being formed ami ho hoped that the Chamber of Commerce would send along its delegates. The speaker assured the meeting...that at a_ tesT~ma~de~at "VVh'ak'afougo it was found that the cost of milking by ben|jnb engine as- against'electricity was .20 per ceiit. cheaper. •In reply to Mr. B. D. Pearce, Mr, Tingey stated tha_t_ Balmerston North had n oT~onTy" re due cd its retail prices but Had made a substantial profit and this had been responsible for the dissatisfaction which prevailed. For the purposes of the discussion it could be stated that Balmerston North was retailing its electricity at rates lower than-those ruling in Feilding and district. The Mayor said that the position would be if Palmerston North came into the scheme, the city would pay a slightly higher rate while tho country would get a silglitly lower rate. Mr. Tingey conceded this as being

possible but illustrated Wanganui’s position where both tho city aud country had benefited. The point was, however, that Palmerston North was benefiting at the expense of the rest of the' board’s area.

Mr. G. J. Fitzpatrick commended the president for introducing tho proposal and proceeded to recall that- when power boards weic first proposed the then Public Works electrical engineer stated that tho cities would JiavA to help the country. Before carrying the resolution Mr. Tingey referred to Mr. Guy’s proposal for amalgamation with neighbouring Bower Boards and questioned veryYnucn whether Wanganui, for instance, would be prepared to accept the advance, it would probably bo suggested to the Maiiawatu-Uroua Bower Board that it should fight to get Balmerston North in. The motion was then carried unanimously. It was further decided, ou the motion of Messrs V. E. Smith and A. Williamson, to invite all the local bodies iu tlio Manawatu-Uroua Bower Board’s area to support tho motion. A further proposal to prepare a remit on the subject for the forthcoming Associated Chambers of Commerce conference was carried.