Legislation Affecting Electricity Supply To Rural Areas

Northern Advocate, 24 August 1945, Page 6

Legislation Affecting Electricity Supply To Rural Areas

Urgent action concerning electricpower legislation to be considered by Parliament during its present sitting was urged in a letter received from the South Canterbury Electric-power Board by the Whangarei Borough Council. The letter enclosed a memorandum and statement by the chairman of the South Canterbury Board (Mr. G. Dash), who urged the council, for reasons he set out, to take certain action by requesting the president of the Electric-power Boards’ and Supply Authorities’ Association to withdraw at once any proposed legislation now before the House. As the House was to consider this legislation at its present sitting, urgent action was required. In his letter, Mr. Dash stated that the electricity committee would be aware that at the ' present sitting of the House it was proposed to introduce legislation concerning assistance to settlers in sparsely-settled areas to receive electric power. The scheme, proposed by a special rural reticulation committee set up by the Power Boards’ Association, provided for an annual levy of per cent, on the retail sales of electricity of every supply authority in the country to be paid into an assistance pool, except in the case of the Public Works Department, where the proposed j per cent, levy was to be made on block sales of electricity to supply authorities as well as on their retail sales in Southland and Rotorua. Major Defects

Payments from the pool were to be made by a new special authority to necessitous cases by granting electric supply authorities an annual grant-in-aid of up to per cent, of the capital costs of an extension, the consumer finding the remainder, to bring his annual guarantee up to 15 per cent, of the capital costs, the grant to continue for 15 years. While the South Canterbury board felt that the principle involved in the scheme had merit, it had three major defects. It was quite inadequate, as at worst it would allow only one or two miles of line per annum being erected by each supply authority, and at best would allow 10 to 12 miles to be erected per annum by a few favoured supply authorities. The principle of levying I- per cent, on departmental bulk sales to supply authorities was fundamentally wrong, would increase bulk supply costs, and would give the Government a sound reason for refusing any reduction in bulk charges. Ultimately supply authorities would be paying for assistance nominally given by the Government. Supply to rural areas was a problem of distribution, not of generation, and to assist distribution at the expense of generation was -ultimately to assist distribution at the expense of itself. Finally, supply to rural areas was a national question and should not be the sole responsibility of the distributing authorities as the present proposals undoubtedly were. Supply to rural areas being desirable from a national point of view, such as helping to check the urban drift and to increase primary production, and being a nationallygenerated product, it should be assisted not only by the existing consumers themselves (the small income group) but also by the national taxpayer (the high income group) by a grant up to £IOO,OOO per annum from the Consolidated Fund. Suggested Alternatives The following alternatives were suggested: Income for the proposed pool should be £116,000, made up of £IOO.OOO from the Consolidated Fund and per cent on retail sales of distributing authorities, £16,000. Measure of control to prevent a strong authority from deliberately lowering its tariff so as to become weak enough to enjoy benefits under the scheme would have to be provided, while an adjustment in bulk supply charges to the smaller rural areas would have to be made,

The South Canterbury board teit that in going to the Government with its proposal before giving Individual supply authorities a chance to discuss the scheme in detail, the association’s executive had moved with undue haste. The annual conference of power boards and supply authorities would be held next month, and after waiting 20 years for a scheme of assistance in rural electrification, surely It was not too much to ask that before legislation was put through the House the question should be thoroughly debated in full conference.

It was asked that the council should immediately approach the association president to withdraw any proposed legislation until after full discussion at the forthcoming September conference.

The town clerk (Mr. L. O. Hall) reported that he had telegraphed Mr. A. J. Murdoch, M.P. for Marsden, asking him to forward a copy of the Bill regarding the proposed legislation of a national scheme for rural electrical reticulation. The council strongly supported the provisions, but had been advised that there had been a slip in the drafting of the Bill and would advise him further after perusal. The letter was deferred to the meeting of the legal and finance committee, the full council, the deputy-Mayor (Cr. S. J. Snow) stating that the proposed Bill had been temporarily withdrawn because of faulty draftsmanship.