HYDRO-ELECTRIC SCHEME

Nelson Evening Mail, Volume LXI, 13 October 1926, Page 5

HYDRO-ELECTRIC SCHEME

The conference of local body representatives to be held to-morrow to discuss the possibilities of a liydi'O'-electric scheme for the province is creating a good deal of interest. It will not be the first occasion on which the subject, has been discussed, a, former conference having gone into the matter at sonic length. No definite result, however, has been arrived at; and subsequently it was felt, in some quarters that the whole question should again be gone into. With this in view, the conference for to-morrow has 'been called.

Before a power board can be set up it is laid down by statute that a certain procedure shall be followed. The Towi: Clerk (Air G. A. Edmonds) has drawn up for the. City Council a very comprehensive report on this, aspect of the mat ter; ami in view of the importance- ol the question a! issue the informal ior given is of considerable value. Th< report states :

In view of the Conference of local bodies which is shortly l<> be held i'oi the purpose of discussing the question of tin! formation of an electric powei district, I have thought that a capitulation of the leading and most important provisions of the Statute, under which procedure would have to be taken, should it be decided to form tin electric power district would be useful to you.

Tin? first Electric Power Boards Act was passed in 1918, but so many amendments were subsequently enacted that it became necessary for the Government to pass a Consolidating Act. This was dune in 1925, and it is under the Electric Power Boards Act of 1925 that all proceedings for the establishment of a power district et seq must be taken.

The Act provides that any area- or areas may be constituted an electric power district or outer area. "Outer Area" means any area, or areas beyond the limits of a district and within which area or areas an electric power board is authorised to supply electric power to consumers.

PETITION The first- step to be taken for the formation of an electric power district is by petition presented to the, Gover-nor-General. The petition must be signed by not less than one-fourth of the ratepayers within each proposed constituent district.. "Constituent District'' means the whole or any part of any borough, county, town district, or road district situated within an electric power district.

The effect of this provision so far as the proposal now under consideration is concerned, would be that each of the districts in this locality desiring to join in forming a. power district would have to obtain separate petitions signed by one-fourth of the ratepayers in each separate, district. "Ratepayers" means only those persons whose names appear for tho time being in the "Occupiers" column of the rale book and so far as districts governed by the -Municipal Corpora lions Act, are concerned, does not include, the. spouses of ratepayers unless their names tiro entered in the rate book in respect of a separate rating. The petition must contain the following particulars : 1. A description of tho boundaries of the area or areas proposed to be constituted an electric power district. 2. A description of the boundaries of any area or areas proposed to be constituted an "Outer Area."

3. The boroughs, counties, town districts and road district or parts thereof forming iho proposed constituent district and auv proposed outer area respectively. 4. Number of ratepayers and the value, improved and unimproved, of all rateable property within each of the proposed constituent districts. 5. The number of members proposed lo constitute the board. 6. A statement as to whether the members of the board are to be elected by the electors of the several constituent districts (including combined districts) or by the ratepayers of the electric power district, and where the members are to be elected by the electors of the several constituent, districts, a further statement as to the number of members proposed to be elected by each constituent district and combined district.

The petition must be publicly notified no I less than one month before presentation in a newspaper circulating within the district, ami a copy of the notice served upon the local authority of each proposed constituent district.

The (lovernor-Ceneral causes such inquiry to be made as he thinks fit, and if he is of opinion that the petition should be granted he may by proclamation declare the area an electric power district, and any proposed outer area nn outer area of such district, or he may alter the proposed boundaries and proclaim the district and any outer area with such altered boundaries, and may assign a name to the district. Tin; (lovernor-Ceneral may also by proclamation on petition, signed by not less than one-fourth of the ratepayers within any defined area alter the boundaries of a district so as to include such defined area within such district.

An area adjoining an electric power district or adjoining an cuter area of an electric power distric-1 and not comprised in any other electric [lower district may on application by the Board of the district be declared by the (lov-ernor-Ceneral by proclamation to be included in and form part of an outer area, or to be an ouler area of the district.

Where a petition for (he constitution of any area as a power district is pre senlcil to the Governor-General, but which has not been signed by at least one-fourth of the ratepayers of each of the pi'oposed constituent districts, the Governor-! ieueral may exclude from I lie boundaries of the proposed electric power district the area comprised in the proposed constituent district in which less than one-founh of the ratepayers have signed the petition, ;\nd constitute the remaining area as an eiectrie power district. The area so excluded may if the Governor-General thinks lit. he included in the ouler area of the district.

UNITED DISTRICTS The Act contains a provision for any Iwo or more districts to become united, and to form one district. This provision can only be exercised upon petition to the Governor-General signed by not less than a majority of Ihe ratepayers in each of the districts.

The'boundaries of contiguous districts may from lime to time be altered by proclamation by the. Covernor-Ceneral in accordance with a resolution proposing the alteration passed by (he Board of each of the districts affected. Provision is made to meet the case of either of the (boards not proposing an alteration. In such a case the petitioning board must forward its petition under seal, accompanied by a petition to the board signed by not'less than two-thirds

CONFERENCE OF LOCAL BODIES COMPREHENSIVE REPORT BY TOWN CLERK POWER BOARDS ACT EXPLAINED PROCEDURE TO BE FOLLOWED

of the ratepayers whose properties are within, the area or areas which it is proposed by such alteration to exclude from or include in the boundaries of the petitioning board. A commission is then appointed to inquire into tho position and a proclamation is issued in accordance with its findings. The Act contains the necessary machinery for making financial adjustments rendered necessary in consequence of any alteration of boundaries.

ELECTRIC POWER HOARDS For every electric power district an electric power board has to be constituted.

Tiie board must consist of one or more representatives of the constituent districts. The number of representatives of each constituent district shall be such as is determined from time to time in each case by the Governor-General, having regard to the relative populations of those districts, to the relative values of the- rateable property therein, to the amount of rates levied or proposed to be levied therein, and to all other relevant considerations. The total number of members of any such board must not be less than five nor more than twelve.

In cases where, owing to the number of constituent districts or smallness of population of any such constituent districts, the Governor-General is of opinion that it is impracticable or inexpedient to give, full effect to the foregoing provisions, he may by Order-in-Couneil combine, into one or more combined districts any number of the constituent districts, for the purpose of election of representatives on the board of the electric power districts and prescribe the' number of members to represent the combined district. He may also by the same Ordcr-in-Council appoint one of the local authorities of the combined district to be the principal local authority for the purposes of tho Act.

ELECTION OF BOARDS The first election takes place on such day as tho Governor-General appoints. An elector of the district is eligible to become a member of the board, and at the poll each elector is entitled to one vote only. Incase of boroughs, where there, is a varied qualification for electors, all persons whether ratepayers or otherwise, whose names are on the district electors roll would be entitled to vote, except, however, as next hereinafter mentioned, that is to say, that the election shall bo by ratepayers only of the whole district, instead' of by tho electors of the several constituent districts, if such method of election is sn specified in the petition for the constitution of the district presented to tho Governor-General,

No other person than a ratepayer would in such case be capable of being elected or appointed a member of the board. Every ratepayer would be. entitled to one vole only, whether or not he is a ratepayer of more than one constituent district.

The election takes place en the same day as the ordinary general election of the members of the local authority of any constituent district or of the ordinary general election of members of tho principal local authority of a combined district. Members so elected hold office until the election or appointment of their successors in a similar manner.

If the. electors or ratepayers, as (lie case may be, fail 'to elect the required number of members, the Covernor-Cen-eral may appoint such qualified persons as he thinks lit to (ill the vacancy. The. chairman of the board is elected from among its members and is entitled to an annual allowance of such amount as may be fixed by the board with the approval of the "Minister of Public Works. Provision is also made icx- payment of remuneration for the members of the board and also for payment of travelling expenses for the purpose of attending meetings.

VOTING! ON LOAN PROPOSALS Ratepayers only whose names are on the roll are entitled to vote. Every ratepayer is entitled to one. vote only. A majority of at least three-fifths of the total number of valid votes recorded at the poll is required in order that the proposal may be carried. FINANCE Boards may borrow such sums of money as are necessary for the undertaking authorised pursuant to the Act. The procedure to be followed for raising the money is the .same as 7? the board were a local authority, namely, as prescribed by the Local Bodies Loans Act 1913. The rale of interest to be paid by the Board must not exceed SJ,- per cent, per annum or such higher rate as may be approved in writing by the Minister of Finance. Loans may be raised for the benefit of defined parts of an electric power district, although such parts may not together form one continuous area. RATING

Bcords mav make ami levy rates to

irovide for the excess of expenditure iver income for any year, in addition to he. special rates required for providing nleresl and sinking fund on loans. \ntes have to be levied either on the mprovod or unimproved value. Boards may collect their rates either hemselves, or call upon the local lufluvities of the constituent districts to •oiled them on their behalf. Local uithontie.s collecting rates'on behalf of

board are entitled to deduct from the. mount collected a sum not exceeding 5

>er cent, fur cost of collection and reiiineration of officers. Local authorities mav be sued bv the

loard and the hoard may recover from hem the amount of any rales uncolected if the local authority fails to take egal steps to collect them, the amount

in such case being deemed to be a debt, owing by the local authority to the hoard. The board may also from time to time during any financial year in addition to any rate made or levied under the Act, make and levy separate rates within any defined portion or portions of its district, subject to the proviso that no such defined portion shall include a constituent district of which the local authority is the holder of a

license issued under section 2 of the Public Works Amendment Act 1911, except- with the consent of the licensee. (This proviso would apply inter alia to Nelson City).

INO rata levied uader this section of tbo Ac!, iu my year Hindi in respect ol ««y one property eiceed fi.sfi or be |«ds tiiaa 10/-. ("Oao properly" means a continuous arci 1- of 'J'antj occupied and used cis one holding). Unless a supply of electricity is available at the boundary of the property or at a point within ten chains p£ such boundary, either from the hoard's mains or from the mains of a licensee supplied by the board, the board shall not be entitled to collect any rate under (his section in respect of that property and every person liable to pay a rate under this section of the Act is'entitled to receive free of charge for use on the property in respect of which the rate is levied a, supply of electric energy equivalent in value to the total amount of such rate at the scale of charges from time to time'fixed by the braid or the licensee as the case may be.' PRELIMINARY EXPENSES Boards may for the purpose of pro viding for the cost of survey and other preliminary works and expenses of ad ministration before borrowing ninnies by way of special loan, and notwithstanding that tin Ordcr-in-Council authorising the construction of electric works bus not been granted, make and levy a uni form rate over the whole of the electric power district. The board may pledge such rate as security for moneys borrowed from its hankers. Any local authority may contribute out of its general fund by way of advance such slim us it thinks lit, not exceeding £250, towards l the expenses incidental to the constitution of any electric power district and the election of an electric poWer board, and towards any expenses that may have been incurred by the board beforo the end of the financial year- in which it is constituted. All moneys so advanced by a local authority are repayable by the hoard on demand, and are recoverable as a debt, duo lo it by the board. ELECTION EXPENSES

The Board may pay the expenses of tho first election as if they were expenses incurred preliminary to the constitution of the district. INCIDENTAL EXPENSES The beard may rail of loan moneys pay any expenses incurred by ratepayers within'the district prior to the election of the board, whether before or after the constitution of the district, or incurred by the board at any time before the board commences the supply of electric energy, or within three years after the first election of the board, which ever period is the less : (a) In making surveys. ■(b) In obtaining office requisites. (c) In advertising. (d) In connection with and preliminary to the constitution of the district-. (e) In repayment of moneys borrowed by way of bank overdraft within the period mentioned. (f) In repayment of moneys advanced to the board by any local authority as previously mentioned. (g) In payment of interest and sinking fund for the first year of the Joan, or, ■with the consent of the Minister, for a longer period not exceeding in any case the period of construction of any works for which the loan was raised, or a period of three years, whichever is the less. OVERDRAFTS

Full provision is made in the Act enabling the board to borrow money from the Bank (limited to certain per centages varying from 2 to 7 per cent, of the annual capital expenditure front the first to the seventh year). Jn the eiglilh year and afterwards the overdraft is limited to the extent given to all local bodies by the Local Bodies Finance Act 1921-22. The board may, however, in any financial year prior to its commencing the supply of electric energy, borrow by way of overdraft or from any person or persons such amount as may be approved by the Minister.

CONSTRUCTION OK PURCHASE OF ELECTRIC WORKS

Without the authority of the Gover-nor-General by Order in Council, the board can neither purchase nor com wence to construct, electric works, although before obtaining an Order-in-Council the board may take all necessary preliminary steps for Ihe future construction and purchase of electric works. Acting under the authority of an Or-der-in-Council so obtained. the board may purchase any electric works the property of the local authority of any constituent district, and the local authority has power to sell to the board, subject to any conditions imposed by the Gover-nor-General. It may also purchase, construct, and maintain the electric works and enter into contracts with any person for the purchase, construction and maintenance of electric works.

The board possesses all the powers of a local authority under the Public Works Act 1908," and the electric works constructed, purchased or taken over, and all works which the board is authorised by the Electric I'ower Boards Act to undertake, are deemed to be public works within the meaning of the Public Works Act. GENERAL POWERS The Act contains very full and wide powers enabling the Board to erect works and do all things necessary or incident thereto, and to provide all necessary machinery plant and other things and for the sale of electric energy in bulk to focal authorities, public and private companies and others for distribution to consumers either as agents of the board or on their own behalf.

SUPPLY OF ELECTRTO POWER fN OTHER LICENSED AIM':AS

Section 85 of the Act is a very important one, inasmuch as it declares thai nothing in the Act shall prevent the board from erecting transmission lines, transformer stations, and other works for the distribution and supply of electric power or from supplying such power to consumers within the area of supply nf any licensee under section 2 of the Pub lie Works Amendment Act 1911. The effect of this provision would be in our case that if the Council declined to sell its undertaking to the board, the board could, notwithstanding, erect lines and transformers inside the city and sell electric current to consumers in opposition to the Council. They could even do this without making any overtures to the Council for the purchase of its undertaking. POWER OF PURCHASE BYGOVERNOR- GENER A L The Act gives power to the Governor General to purchase any electric works provided for in the Order-in-Council at any time after they have been completed, upon giving twelve months notice to the board, anil provides for their subsequent control by the Crown. MISCELLANEOUS The Act contains miscellaneous provisions, such as the power to make bylaws, disenfianchisement of defaulting ratepayers, execution of contracts, the assumption by the Government of peseeatiefc And ' control of w»tk» if the

Hoard is guilty of inexcusable delay in the prosecution of its purposes, amalgamation with other boards, the purchase and sale of electric motors, fittings, machinery and equipment and other provisions in connection with the carry ing on of the undertaking by the board CONOI.UHION J jjj,ve Lnod to trjnd<Hi.-e the fid, Much is one of i'49 .scvlioz: into as ;*m.dl a 'compass 1 as pcss.'ble', and have avoided the introduction of more formality than is necscsary for the purpose of retaining the direct meaning and application. There are many provisions iu the Act which are mereTy administrative. and these I have not troubled lo include in this survey, except in cases where they appear lo be unusual or of special im perl ;i nee. I trust- that although somewhat leug thy, a perusal of what I hav ( . written will give you a gimd idea of the pro visions contained in Ihe A< I and u ill enable you to be prepared lit meet some of the questions which will possibly arise at the forlhcomine conference,