PRICE OF ELECTRIC POWER

Nelson Evening Mail, Volume 76, 15 September 1941, Page 2

PRICE OF ELECTRIC POWER

STABILISATION PROPOSALS SUGGESTION OF GOVERNMENT 1 SUBSIDY Proposals are being discussed] whereby, if the Price Tribunal gives permission to a supply authority, to increase the price of electric power, the Government may grant a, subsidy instead of allowing the in- 1 crease in price. The Supply Authorities’ Associa- j tion wrote to the Golden Bay Board ; pointing out that it was proposed under the Price Stabilisation Emergency Regulations, 1939. to empower the i Price Investigation Tribunal to stabilise the price of various commodities, one group including electricity, coal, coke and gas. It appeared that the price at which electricity was sold would be stabilised probably at the, points operation to-day and that if | any rise in price was required by any, authority at a later date, this must come, as usual, before the Price Tribunal. In the event of a rise being agreed to by the tribunal, however,; this would be made by means of a , Government subsidy and an order j would be made restraining the supply authority from actually raising its prices. In other words, where previously authority would have been given for a rise in prices, it was understood that this, under the new arrangement, would be withheld and a subsidy granted instead. Several members expressed disagreement with the subsidy system of price stabilisation mentioned in the letter, contending that any business' undertaking should stand on its own feet. No action was taken pending further and more definite information coming to hand.