City Council Signs Contract for Plant

Manawatu Times, Volume 60, Issue 135, 11 June 1935, Page 7

City Council Signs Contract for Plant

CE. HODGENS REPLIES TO MR ELIOTT “IF ONLY HE HAL) TAKEN THE TROUBLE TO ASK’’ At a .special meeting oL' the City Council last evening, the seal of the council was put to tho contract for additional plant for the city’s own power station. The additions will cost £21.108, made up of £1.7,000 for engines, £3120 for alternators, and. £S2 for minor parts for tho engine. When the Mayor asked councillors if they wished to make any statement before the seals were affixed, Cr. Hodgens informed the council of the new attitude taken up on the Power Board by Air M. A. Eliott, one of tho city’s representatives. “Ho delivered quite a, mass of ligurcs on unit costs/’ said Cr. Ilodgens, “and made comparisons between standard rates, plus £2OOO, and unit costs in Hamilton, Wellington and Wangamii-Rangitikci.” Cr. Hodgens explained here that the Power Board was asking for £2700 in addition to standard rates, but Mr Eliott had quoted £2OOO as an offer which the city might reasonably make to the Power Board. Cr. Hodgens then proceeded: “Furthermore, Air Eliott said the expenditure of £25,000 on additional plant was unwise because the expenditure of that amount of money would mean £3OOO a year extra to the council, a loss of £IO,OOO a year to the Government, and £IOOO a year to the Power Board. And those figures did not include ‘diversity,’ which Air Eliott said was difficult to estimate.

"To me this came as an awful shock, because all our ratepayers know that we are making a determined stand here in an endeavour to get a uniform charge,’’ continued Cr. Hodgens. “And when Air Eliott said that unit cost in comparison would be cheaper to Palmerston North if they paid £2OOO as well as standard rates, he was hardly fair to the council and to Mr Muir, our engineer. If he had called on Mr Muir lie would have been show-n this letter from Air J. Webster, electrical engineer to the Hamilton Borough Council . . .

Air Hodgens read the letter, the main point disclosed being that while the charges were the same as Palmerston North was paying—£2 10s a quarter for the first 200 k.v.a., and £2 per k.v.a. for the balance—Hamilton had

the advantage of 5 per cent, discount on standard rates and no service charges whatever. “We aro buying energy in k.v.a.’» of demand, and the question of unit costs is something that may vary in accordance with the manner in which the units distributed. It has been shown that if we were to accept the Power Board's latest offer for a fiveyear contract, it would mean we would pay between £19,000 and £20,000 more than Hamilton pays for the. same amount of current. It is a. pity All Eliott did not conic to the council’s officers and discuss with them what the council has in mind, and then I am positive Air Eliott would not have made such a remarkable statement.” Answering Cr. Tremaine, Cr. Hodgens said a 5 per cent, discount would mean something over £IOOO a year to the city. Answering Cr. Cameron, Cr. Hodgens said that if the city ran its plant the penal rate would be charged, which would mean paying £33,406 for current which the council could generate for £22,530. Hamilton, on tho other hand, secured power less 5 per cent, discount. Cr. Hodgens said another aspect being lost sight of was the security offered by a stand-by plant, and he instanced tho intention ot ! the Power Board to shut down soon for six hours between 10 p.m. and 5 a.m. to enable work to be done at Bunnythorpe substation.

Tho Mayor: What is the "Times” going to dof Cr. Hodgens: It might affect th* writing of their leaders. Cr. Tenncnt: Change their point of view. (Laughter.) Cr. Ilodgens instanced the stand-by plants in Wellington. He also mentioned the suggestion that the Afayor should call a public meeting, but recalled that there had been a public meeting —when the Mayor and candidates for tho council faced the ratepayers and tho Mayor had referred to the dispute with the Power Board. The candidates on the platform had all supported the Alayor’s attitude. Cr. Cameron said tho farmers o? the district were ignorant of the position, and when he had told a certain person of the lotter the council had from Sir Alfred Ransom, which stated tlio big stick must not be used to force the city, that person had been astounded. It was the first time ho had heard of it. So it seemed the city’s side should be set out in some form or other.

The necessary signatures were set to the contract under the Council's seal.