POWER STATION COAL

Northern Advocate, 21 December 1932, Page 10

POWER STATION COAL

GLEN AFTON CLAIM

(Special to “Northern Advocate.'') AUCKLAND, This Day. It was announced at a meeting of the Auckland Electric Power Board on Monday afternoon by the chairman, Mr W. .7. Holdsworlh, that a settlement had been reached in connection with a claim of £7d,0()0 by (Hen Afton Collieries, Ltd., for the supplv of coal to King’s wharf station during the breakdown of Arapnni. When Arapnni broke down, a contract Avas signed for the supply of coal for throe years at the rate of 3000 tons a week. At the expiration of about IS months Arapnni was restored, and negotiations were opened for the cancellation of the contract. In a statement to the board, Mr Holdsworlh outlined the negotiations in reference to the contract.

“The board was well aware* of its responsibilities in this eonnoetion and, by agreement with the Government, arranged to again revert to hydro-electric power immediately it again became available. On April 14 last the King’s wharf station wis again closed down and the board’s supply transferred to the Government under an agreement by which any compensation payable to Glen Afton Collieries, Ltd., in respect of the unexpired period of the contract should be' met erjnally between the Government and the board.

“Negotiations have since this date been in progress with the Glen Afton Collieries, Ltd., but, as these did not prove successful, the company recently issued its writ of approximately £75,000, representing its claim for damages arising as the result of this broach. “Further effort has recently been made to reach an amicable settlement, ami the final report of the Goal Committee now being presented, shows that these protracted negotiations have now been concluded on a basis which it is considered is fair to both parties. A lump sum compensation of £OO,OOO will be payable, one-half by the Government and the other half by this board. “By the breach the board is effecting considerable economies which fa* greatly exeeod any coin pensa lion which (he board has agreed to meet." “It will be remembered,’’ he said, “that some few months after the King's Wharf station had been closed down an unfortunate development occurred at Arapnni which made it necessary for (lie board’s steam station to again resume operations for an indefinite period, whilst the necessary remedial measures were* being undertaken at Arapnni. At that date *t was considered by the Government that the complete restoration of the Arapnni hydro-electric work’s could not be concluded under a period of three years, and it was on this basis that | the Government entered into a least* for the Macdonald Stale coal mine, which was followed by this board entering into a contract with fin* G|en| Afton Collieries under which the!

board was to be supplied with Its total requirements of coal. The earlier restoration of tiie Arapnni supply has necessitated a breach of the above contract.