POWER BOARD AND CITY COUNCIL

Manawatu Times, Volume 62, Issue 57, 9 March 1937, Page 3

POWER BOARD AND CITY COUNCIL

Country Interests Grow Restless TIME FINALITY WAS BEACHED. Opinions of regret mixed with expressions of disgust were voiced at the fcfanawatu-Oroua Power Board meeting yesterday when a report on the abortive nature of the last conference with representative of the Palmerston North City Council, held to try and finalise the electrical dispute, was presented. The Teport read as follows: “A conference was held at the Council Chambers on Tuesday, March 2, 1937, at 2 p.m. between representatives of the Manawatu-Oroua Electric Power Board and the City Council. Present: The Mayor, Crs. Cameron, Tremaine and Tennent (representing the city), and Messrs. Dernier (chairman), Bond, Gay and McKay (representing the Power Board. The Mayor extended a welcome to the board members for coming along and said that on the last occasion they met they thought that they had arrived at finality. It had come as a great surprise to receive a reply from the Minister saying that he would not agree to the conditions, as a result of which Mr. Kissell met the council and put forward a proposal which was not acceptable. A resolu iion had been passed that the City Council meet the Power Btf&rd in conference. The Mayor considered that the only proposal that could bo discussed that afternoon was the proposal that the City Council take the whole of its power from the Power Board. He did not consider they could get auy further along the lines agreed to at the last conference, and said that if the "Power Board could make a proposal to the council in connectiou with the council taking the whole of its power, then some satisfactory arrangement might be arrived at which would, however, be subject to arrangement with the Public Works Department in connection with the running of the standby plant. 4 ‘Mr. Dermer expresssed pleasure in again meeting the committee, and said he did not consider that there was much prospect, under the above circumstances, of being able to arrive at anything that afternoon. He did not think it was a fair thing to ask the board to put up un offer and considered that the offer should come from the council.

“After discussion, the council representatives retired to consider the position and on resuming, submitted the following offer to the Power Board: That the Palmerston North City Council is prepared to take the whole of its supply at Government standard rates plus 5 per cent., plus service charge, conditional upon the Public Works Department allowing the council the sum of £ISOO for the plant as a standby. “The Power Board representatives retired to consider the offer, and on their return Mr. Dermer stated that the offer was not acceptable to the board and said that he considered the board would be in a worse position than under the arrangement whereby the council agreed to take two-thirds of its supply at Government standard rates, plus 8J per cent., plus service charge. “Tbo Mayor regretted that the conference was unable to come to a settlement and the council wou»«i therefore have to negotiate with the Public Works Department. The conference then terminated." •

The board also had before it a letter from the Minister of Public Worka (Hon. B. Scrapie) who, in acknowledging receipt ot the board’s resolution expressing a desire to see the dispute settled before the end of the financial year, said he also was most anxious that the matter should be finalised as early as possible. He arranged for the chief electrical engineer to discuss the matter with the City Council shortly before the Christmas holidays but so far the City Council had given no indication of any decision that it may have reached following the conference. On the motion of Mr. I*. G. Guy the Minister’s letter was received.

The chairman (Mr. C. G. C. Dermer); This reply doesn’t get us much further but I suppose it is the only thing we can do in the meantime.

Mr. N. Campbell: The City Council has been playing with us for a long time. I wonder if wo could get the Minister *to interfere? Mr. Guy: That matter will come up later on.

When the report of the abortive con ference was placed before the meeting for discussion, the chairman (Mr. C. G. C. Dermer) expressed the opinion that nothing serious had been contemplated by the City Council; their proposition had not been seriously meant. The new offer meant that, on the basis of 2509 k.v.a., the board would receive £430 less thau it would have got under the arrangement agreed to previously and quashed by the Minister. The new offer was a ridiculous proposition. Mr. J. A. Nash: Did you take diversity into account?

Mr. Dermer: The offer was on the previous basis and subject also to the council getting £ISOO from the Public Works Department which had nothing to do with us really.

Mr. N. Campbell: It looks as if they are trying to draw the P.W.D. by using the Power Board as a shield. The chairman: They want to be in a position to go to the Public Works Department and say the Power Board will give a supply at a certain price if we get so much from you.

Mr. P. G. Guy pointed out that it was nearly 21 months since the switch was pulled on Palmerston North and all the City Council could do now was to call the board to a conference and say they had nothing to offer. That was not a fair thing. There had been five or six conferences with the City Connell and the board had been made the chopping block each time. At the ».«m conference the council had nothing to offer and had to leave the room to for mulate some proposition. “We can’t go on like that,” added Mr. Guy. "It seems the City Council wants to justify its purchase of the new plant and that is why they are asking £ISOO of the Public Works Department. They have made a mess and now want to blame u».”

Mr. W. P. Bickers expressed similar views and pointed out that tho board was billed with £II,OOO really owing by Palmerston North to the Public Works Department. Who was going to benefit by tho stand-by plant? It would not be Feilding nor tho country people. There had becu enough dilly-dallying. Mr. E. O. Bond described tho last conference as a disappointing one. Jt also had had a lot of bad features. Tlnboard did not know whero it stood and it must know soon because in framing its estimates lor the new year, it wanted to revise the tariff and lower charges. The City Council had got into a tangle; they were like somebody cornered and did not know what was the best thing to do to get out of a difficult situation. A previous conference had readily agreed that the city should take two-thirds of its load at 8$ per cent, and the negotiations now should be in respect of the remaining onethird. The offer they brought down had been a stupid one after leaving the board representatives twiddling their thumbs lor 20 minutes. “I was thoroughly disgusted,’’ lidded Air. Bond. “I hope somebody else is in my place at the next conference. I am fed up with the whole thing.” Mr. W. G. Shannon: Should we go on with the court case?

Mr. Gtiy thought the report should be referred to the contract committee to decide what action should be taken. Mr. J. H. Mason was of opinion that the City Council had no intention of making the matter a serious one. Mr. Campbell thought the board had been weak in meeting the council only to get a lower offer each time. He thought the P.W.D. should be strong enough to settle tho dispute. It was the department which was losing £II,QUO, Something would have to be done to get the Government to move. Mr. W. McKay: The city offer only added insult to injury. The outlay on the city plant has amounted to a big sum and the council is making an endeavour to get such terms as will covoi up its position. The Mayor stated that even if they got £ISOO from the Public Works Department, tho ratepayers would still be £7OO to £BOO short on their interest bill.

Mr. J. Boyce; 1 can’t see how Palmerston North can expect £ISOO. Thera was never auy need for such a big plant. It was only bought to use as a big stick. “Why doesn’t the Minister come out and settle the matter?” ne added. “He does a lot of talking but it seems to me he doesn’t do much.” Mr. Guy: I would like Mr. Boyce to withdraw something he • said. That about Air. Semple talking too much and not doing much. We want to get this matter settled and should be careful.

Mr. Boyce: Well, if it will help 1 will withdraw it.

Mr. M. A. Eliott: Although Mr. Nash and I are the representatives of the ratepayers of Palmerston North on the board, the council never consults us. At the conclusion of the board meeting the contract committee met to consider what further action should be taken, tho opinion being expressed by board members that the Minister should be asked to settle tho dispute.