POWER SUPPLIES

New Zealand Herald, Volume LXXIII, Issue 22388, 7 April 1936, Page 12

POWER SUPPLIES

GOVERNMENT POLICY NATIONALISATION HINTED BOARD CHAIRMAN'S STATEMENT [BY TELEGRAPH —PRESS ASSOCIATION] PALMERSTON NORTH. Monday Hints that action of a revolutionary nature were pending in tho hydro-elec-tricity policy of New Zealand, with particular application to the longstanding dispute between the Mana-watu-Oroua Power Board and the Palmerston North City Council, were dropped at a meeting of the former body to-day. The chairman, Mr. C. G. Dermer, said that at the last meeting of the board a resolution was passed to proceed with litigation against the City Council. However, subsequently the contract committee of tho board decided that the chairman and managing secretary should go to Wellington to ascertain the position regarding the penal rate previously imposed by the Public Works Department, the question at issue being whether to sue only on the service charge. The Minister, when interviewed, expressed regret that the dispute was still unsettled. He intimated that he was calling, very shortly, a conference between the Palmerston North City Council and Public Works Department representatives, the MnnawatuOrua Power Board and tho Minister of Finance.

Tho chairman said he had expected this conference to take place before now, but it had not. In tho meantime the decision to proceed with the litigation had been deferred. Mr. J. Hodgens, M.P., had been called into the discussion with the Minister, and had expressed the view that a Court case would not settle much. The dispute really was between the Public Works Department and the City Council. Mr. P. G. Guy asked what was to be the basis of the proposed conference. The Chairman: It will be an endeavour to settle the dispute between the Public Works Department and the Palmerston North City Council. Mr. Guy: Then there is nothing about nationalisation. The Chairman: There might be. I think they are going into it. It seems there will be no statement until Mr. Semple has gone into the question of funds with the Minister of Finance. Mr. Elliott inquired if that was to imply that the Government was to tako over all power board undertakings. The Chairman: I understand that, but there is nothing concrete. I think that if possible the Government will take over the whole business.