Protest Against Charge of Power

Manawatu Times, Volume 61, Issue 11, 14 January 1936, Page 3

Protest Against Charge of Power

ECHO OF CITY COUNCIL-POWER BOARD DISPUTE. Because the peak has continued to be cut by the Palmerston North City Council using its own generating plant, the Manawatu-Oroua Power Board has been obliged to charge at the penal rate of ,4d per unit for all electricity supplied to tho city from Maugahao. This penalty, however, the City Council has refused to pay, and has adhered to the rates set out iu the old contract. The Power Board, in its turn, only paid the Public Works Department at the contract rato and the result has been the Board is faced with accumulating penal rate arrears.

The secretary reported to yesterday’s meeting that he had received an account from tho Public Works Department for £13,479 ISs 2d for the last quarter. Of that amount, £2215 consisted of the penal rate arrears of the previous quarter. The department’s bill for tho quarter ended December 31 was £11,263 IBs 4d and the Palmerston North City Council’s sharo was £5511 0s Bd. If the account had been rendered under tho old agreement, it would have amounted to £9106 and PSHucrston North’s share £3S7S 4s.

The secretary said tho iinance committee thought some protest should bo lodged by the board to tho department’s method of calculation. Mr J. A. Nash: Doesn’t it mean the whole thing is in abeyance pending tho decision of the Supreme Court? The chairman (Mr C.. G. C. Dermcr): That is so, but the committee thinks a protest should be made. If the .4d is eveutually washed out, the board won’t lose anything, but if the charge is sustained wo will lose from £BOO to £9OO.

Mr W. McKay asked if the whole charged was based on .4d, the chairman replying that the penal rate was only put on. the portion used by the City Council.

Mr McKay said it was clearly set out in tho. Court injunction that any damages sustained by the board must bo paid by Palmerston North. The chairman pointed out, in reply, that if this basis was adopted it would not be under the injunction but under the agreement. Mr M. A. Eliott said it seemed the department was trying to uphold its case against , the City Council. Mr J. Boyce moved and Mr P. G. Guy seconded a motion of protest which was carried.

Mr Eliott asked when the Court case was coming on.

Mr Boyce: We don’t know.

The chairman: It will come on at the next, sitting of tho Court I take it unless something intervenes.

Mr Boyce: Can we get the case put off till Parliament meets? It doesn’t seem much uso the Court making a decision if the new Government is going to nationalise the whole matter.

Mr Guy: It is necessary to get a de cision.

Mr Eliott: Yes, from the point of view of both bodies concerned.

Mr Nash: You are get some legislation you won’t like. Take it from me.